A Ministry of Construction report reveals that property transactions in the first nine months of this year were only 41% of the previous year’s total, totaling just 320,000 successful transactions.

Land transactions represented only 36% of the 2022 figure, while apartment and house transactions showed a 63% rate.

Low-rise house prices experienced a decline of 10-20%, while apartment prices continued to rise due to a limited supply of new units, as indicated by data from local agencies, market research firms, and the construction ministry.

Insufficient supply was also evident in the social housing and shophouse segments, with only 42 new shophouse projects (16,000 units), a 54% decrease from the previous year. Legal obstacles resulted in only five new social housing projects with 850 units.

There were 17 new projects in the resort and officetel segments, marking a 43% decrease.

Property companies issued $1.9 billion (VND46.7 trillion) worth of bonds by the end of August, constituting 35% of all corporate bonds issued during that period. They also represented 46% of the 455 businesses in the corporate bond market as of December.

In the initial nine months, foreign direct investment in the property sector reached an estimated $1.94 billion, accounting for 9.6% of the country’s total FDI and ranking second only to the manufacturing sector.