Real Estate Giants Dominate Market: Diminished Competition, Soaring House Prices
The real estate market is witnessing significant shifts, with major developers increasingly dominating supply. A recent report from the Vietnam Association of Realtors (VARS) highlights that while overall supply has improved, it heavily favors luxury and high-end projects. The middle-class and affordable segments remain largely underserved.
Diminished Competition and Market Control
As of the third quarter of 2025, the northern region leads with 49% of newly launched projects, despite a slight decrease. The southern region contributes 27%, while the central region sees a remarkable rise to 23% due to accelerated project timelines. Major developers continue to command over half of the market, contributing 54% of the new supply. Leading names include:
- Vingroup – 9.7%
- Sun Group – 10.7%
- Masterise – 11.3%
- Phát Đạt – 4.8%
- Bcons – 3%
- CapitaLand – 1.5%
By the end of September 2025, these key players controlled approximately 64% of the total market supply, pushing smaller companies out of the running.
Impact on House Prices
The concentration of new supply in the hands of major companies is leading to inflated prices. In major cities like Hanoi and Ho Chi Minh City, about 80% of new apartments are priced above 80 million VND per square meter. This scarcity is exacerbating home affordability challenges for average buyers.
Market Dynamics and Regulatory Challenges
Experts warn that the sustained dominance of large developers could stifle competition, as they often optimize profits by setting higher initial prices without reducing costs. Nguyen Chi Thanh, vice president of VARS, states that shifts in regulations over the past several years have hindered smaller firms. Many projects require extensive land use changes, creating legal barriers that escalate costs for these developers.
This imbalance could threaten overall market stability. The focus on high-end developments often excludes middle-income buyers, with affordable housing comprising just 6% of supply, primarily through social housing initiatives.
Potential Solutions for Market Diversity
To combat the current supply crisis, experts suggest implementing supportive policies for small and medium-sized enterprises (SMEs). Enhancing access to financial resources and simplifying legal frameworks could enable these businesses to diversify the supply and enhance market competition.
Despite the challenges, the involvement of large corporations has led to urban development improvements and project efficiencies. However, there remains concern regarding their ability to manipulate market pricing, as they dominate the vast majority of offerings.
This concentration means buyers often face limited options, leading to a market mismatch where investor-driven purchases overshadow genuine housing demand. Stakeholders advocate for more balanced market conditions to ensure that the real estate landscape not only caters to high-end consumers but also addresses the needs of the average homebuyer.
