The latest housing bubble occurred in Vietnam in the 2007-2008 period, left the market frozen with an enormous number of unsold land plots, houses, and apartments.
For these three years coming, around 64000 apartments will be put onto the market in Ho Chi Minh City and more than 61000 Units in Hanoi.
The Ho Chi Minh City Real Estate Association
(HoREA) said that the city’s districts 1, 2, 4, 9, Binh Thanh and Thu Duc will all see a large number of luxury apartments going up. An increase of supply in these next three years may lead to a bubble in the real estate market.
The government offers supportive measures, but speculators bring disadvantages that imbalance the market. Projects delayed for a long time, cause a significant amount of debt and the property developers focus now on luxury residential projects rather than affordable and low-cost houses. These factors could contribute to a risk of housing bubble shortly.