Ho Chi Minh City real estate market rebounds after prolonged downturn

The city's Department of Construction said at a regular economic and social briefing that the sector had faced severe headwinds from 2020 through mid-2024, including periods when growth fell more than 15 percent.

According to the department's housing and real estate market division, sustained policy support from the municipal government and efforts by developers helped gradually narrow the contraction, allowing the market to stabilize and recover.

By the end of 2024, real estate business activity had returned to positive growth. 

In 2025, the sector recorded growth of 3.06 percent, maintaining a positive trend.

Officials attributed the recovery in part to the implementation of revised real estate-related laws that took effect on August 1, 2024. 

The legal changes were aimed at improving the regulatory framework and resolving long-standing bottlenecks affecting developers and projects.

During 2025 and early 2026, the city also introduced additional measures to address land-use constraints and unlock resources for the market. 

These included applying special mechanisms under a revised National Assembly Resolution 98 to resolve stalled build-transfer projects and pilot the conversion of land use for commercial housing development.

As of now, the city has approved pilot commercial housing development for 96 projects and is reviewing proposals for an additional 25 projects.

The Ho Chi Minh City government has also established a special task force and restructured its steering committee on housing policy and the real estate market to review and resolve difficulties facing delayed projects. 

Authorities said issues had been addressed at 80 stalled projects, including five under the authority of the prime minister.

Looking ahead, the Department of Construction said the city aims to accelerate the development of social housing, completing 28,500 social housing units in 2026.

The city has prepared land and incentive policies to attract investment.

Before January 19, the city expects to break ground on three social housing projects with a combined total of 5,568 units.