The Ministry of Construction has reported a significant increase in the inventory of unsold condominiums across Vietnam, with numbers reaching over 12,800 units in the second quarter of this year. This figure represents a staggering nearly fourfold increase compared to the same quarter last year. The report highlights a broader trend of rising unsold real estate across the country, with total inventory from developers nearing 39,300 products.

In detail, the condominium segment saw a quarterly increase of 22%, while the inventory of individual houses within projects rose by 46% quarter-on-quarter and 48% year-on-year, totaling over 15,300 units. Additionally, land lots accounted for approximately 11,148 unsold products, reflecting a 25% increase from the previous quarter, although this marks a slight decrease compared to the same period last year.

The surge in unsold inventory coincides with a continuous expansion of housing supply nationwide, despite high selling prices. The Ministry's report indicated that 131 commercial housing projects were approved for sale in the second quarter, offering more than 59,000 units, a 70% increase from the previous year.

In major cities, the average price of new condominiums remains high. In Hanoi, the average price is around 123 million VND per square meter, while in Ho Chi Minh City, it stands at approximately 108 million VND per square meter, and in Hung Yen, about 69 million VND.

Research firms have noted a significant drop in transactions, particularly in Hanoi, where around 9,700 units were sold in the first half of the year, with nearly 4,600 units sold in the second quarter alone, marking a 45% decrease compared to the same period last year. The slow sales are attributed to a mismatch in supply, with over 70% of the 11,000 units released being high-end or luxury products, while affordable options remain scarce.

In Ho Chi Minh City, research by Savills revealed that 80% of the condominium supply in the last quarter was priced above 120 million VND per square meter, with the mid-range segment reaching up to 90 million VND. The overall absorption rate for the market was only 32%, down 8% from the previous quarter, primarily due to slow sales of high-end products.

Experts suggest that the rising inventory reflects the difficulties facing the real estate sector. Pham Duc Toan, CEO of EZ Property, expressed concern over the slow sales of available products, which can hinder liquidity and create financial strain for developers, especially those with high leverage or long-term projects. To improve liquidity, he recommended that real estate developers restructure and adjust their product strategies to align with the actual market demand, offering financial solutions that ease cash flow pressures for buyers, thereby reducing inventory levels and enhancing capital recovery.