The property market in Vietnam showed a paradoxical phenomenon throughout the first half of 2026. The latest data from the General Statistics Office recorded that as many as 1,463 property companies were forced to dissolve, a sharp jump of 120.3% compared to the same period in the previous year. In addition to dissolutions, it was also recorded that 2,971 business entities chose to suspend their operations.
This condition reflects a very strict process of natural selection in the industry. Many companies with weak financial foundations, supply constraints, and cash flow crises eventually succumbed to market pressure. Even so, the entrepreneurial spirit in the sector has not completely died out; data shows there were 3,192 new companies established, an increase of 23.3% compared to last year, and 2,445 businesses that decided to resume operations.
On the other hand, the appeal of property to foreign investors remains strong. The Ministry of Finance reported that the property sector managed to attract foreign direct investment (FDI) of US$5.1 billion in the first six months of 2026, putting it in second place after the manufacturing sector. The scale of this investment flow is driven by global investors' interest in large-scale projects with a long-term vision, even though the domestic market has not yet shown a comparable performance.
The gap between foreign capital inflows and domestic purchasing power is the main challenge currently. Public purchasing interest reportedly decreased by about 5% last May. The latest survey revealed that only 36% of respondents had the intention to buy property, a figure that dropped sharply compared to 55% in the previous year. The majority of prospective buyers now choose to take a 'wait and see' attitude for at least the next year before deciding to reinvest in this sector.
