Many Vietnamese property stocks have fallen 50-60% over the past year, returning to price levels last seen during the 2022 corporate bond crisis.
The VN-Index fell more than 20 points at one point on Monday, reaching 1,763.62 points. However, a recovery in oil and gas stocks in the afternoon, along with gains in some blue chips including BVH, VHM, VCB, STB and VNM, helped narrow the index’s losses to 4.43 points, with the benchmark closing at 1,780.68.
Property stocks continued to weigh on the market, with KOS and NVL hitting their daily floor prices, while DIG, HDC, NLG, SCR and HHS fell between 3% and 6%.
Many Vietnamese property stocks have fallen 50-60% over the past year. Illustration courtesy of Money Control.
Over the past year, most property stocks, with the exception of some names such as VIC (Vingroup) and VHM (Vinhomes), have been on a downward trend. Notably, many have broken below or returned to price levels last seen at the end of 2022, when a corporate bond crisis left many property companies struggling with cash-flow constraints.
AGG, the stock of An Gia Real Estate Investment and Development Corp, plunged from around VND19,000 per share to VND9,180 ($0.35), a decline of nearly 50%. The stock is now at its lowest level since its listing in January 2020.
TTC Land’s SCR closed at VND3,870 ($0.15) on September 28, down 61% from September 2025 and back at its lowest level since November 2022.
Similarly, SGR of Saigon Real Estate Corp (Saigonres) fell from around VND28,000 in July 2025 to VND10,700 ($0.4), a decline of more than 60%. The stock is also trading around levels last seen at the end of 2022.
KDH of Khang Dien House Trading and Investment JSC has fallen from VND36,000 to VND15,300, a decline of about 57.5%. The stock had also traded below VND16,000 ($0.62) following the corporate bond crisis in the second half of 2022.
DIG of DIC Corp, meanwhile, traded above VND80,000 during the property boom of 2020-2021 before plunging to around VND9,000 at the end of 2022. After nearly four years marked by several recovery attempts, the stock is now back around VND9,230 ($0.36), down about 60% from October 2025.
Notably, DIG’s share price has remained weak despite the company carrying out a number of project transfers to improve cash flow, reduce debt and complete the repayment of its bond debt. This suggests that improvements in liquidity and debt structure have yet to provide a sustainable catalyst for a recovery in the stock.
High interest rates, weaker liquidity
Analysts said the weak performance of property stocks comes as the sector continues to face pressure from high interest rates, weaker market liquidity and rising funding costs.
According to real estate consultancy DKRA Consulting, fixed mortgage rates for 12-24 month loans at 11 commercial banks averaged around 10.9% a year in August.
That was significantly higher than the 8.5-9.2% range in the second quarter, according to a survey by the Vietnam Institute for Real Estate Market Assessment and Research covering 10 commercial banks.
Higher interest rates are putting pressure on both home-buying demand and market liquidity. As borrowing costs rise, homebuyers have to assess their repayment capacity more carefully, while leveraged investors face higher costs of holding assets.
S&I Ratings said the property market was going through a difficult cycle as liquidity weakened under the pressure of high interest rates. Transactions in both Hanoi and Ho Chi Minh City had slowed, with absorption rates down 20-40% from previous quarters.
According to data from the Ministry of Construction, more than 100,000 property transactions were recorded nationwide in the second quarter, down 28.5% from the first quarter and 36.3% from the same period in 2025. Liquidity has continued to weaken and absorption rates remain low, putting pressure on companies’ cash flows and inventories.
The pressure is not limited to the demand side but also extends to companies’ financing positions. Compared with the 2022 corporate bond crisis, debt pressure remains high at many property companies. While bond debt has declined at some companies, bank borrowing has increased, keeping funding costs a key factor to watch.
Novaland is one example. Although its bond debt has declined, the company’s total borrowings stood at over VND72.91 trillion ($2.81 billion) as of June 30, 2026, up more than VND8 trillion ($308.02 million) from the end of 2022.
At Khang Dien, borrowings at the end of June 2026 were also about 2.5 times higher than at the end of 2022, as the company expanded its land bank and developed new projects.
According to S&I Ratings, property companies’ funding costs are currently around 12-14% a year. At the same time, labor and material costs have risen 10-20%, increasing project development costs.
With input costs rising while companies’ ability to raise selling prices is constrained by purchasing power, profit margins in the property sector could come under pressure. Companies with high financial leverage, delayed projects or slow sales are likely to face greater difficulties in balancing their cash flows.
On the other hand, efforts by authorities to resolve legal obstacles are helping unlock a number of property projects. If progress in resolving legal issues continues to improve, market supply could increase in the coming period.
However, with mortgage rates remaining high, market liquidity weakening and buyers becoming more cautious about major financial decisions, the pace of absorption remains an important variable.
For property companies, resolving legal issues is only a necessary condition. Their ability to execute projects, launch sales, collect customer payments, and convert revenue into actual cash flow will determine the extent to which their financial health improves.
In the short term, if interest rates remain high through the end of the year, pressure on liquidity and property absorption could persist.