What do real estate businesses predict and expect in 2025?

As 2024 drew to a close with the market beginning to recover, real estate businesses entered 2025 with renewed expectations for a strong market rebound, leading to numerous new product launches.

2025 will be the starting year for a new development cycle.

Ms. Luu Thi Thanh Mau, General Director of Phuc Khang Investment and Construction Joint Stock Company

Ms. Luu Thi Thanh Mau, General Director of Phuc Khang Corp.

2024 is a pivotal year marking the transition between the old and new phases, with 2025 considered the beginning of a new development cycle. In particular, the real estate market will continue its recovery trend, maintaining growth in major cities. Along with three important land-related laws that will come into effect on August 1st, 2024, this will create a favorable legal framework and foundation for the next market phase. Therefore, 2025 is considered the first year of this new development cycle.

The real estate market in 2025 is expected to develop more stably and sustainably thanks to supporting factors such as a clear legal framework and investors having gained experience from previous cycles. However, to return to the vibrant, "golden age" of 2018-2019, the market will still need a few more years. The green real estate market in Vietnam in 2025 has the potential to make positive progress, but still faces some challenges.

The number of green buildings could double compared to the current level thanks to increasing interest from the government, investors, and the public. This rate is projected to result in an additional 150-200 new green building projects receiving LOTUS, LEED, EDGE certifications, or equivalent standards. Growth is expected to be concentrated mainly in major cities such as Ho Chi Minh City, Hanoi , Da Nang, and their satellite urban areas.

Green offices will become a rapidly growing segment, especially in Ho Chi Minh City and Hanoi, thanks to the increasing demand from foreign investors for green-certified office buildings to meet their environmental, social, and governance (ESG) standards.

Green real estate in Vietnam is expected to enter a period of strong growth in 2025, particularly in major cities and the office segment. However, to reach its full potential, Vietnam needs robust policy reforms, enhanced communication, and financial support for developers. The market will continue to grow, but there is still a significant gap to bridge to achieve sustainability goals by 2050.

In 2025, Phuc Khang will also focus on completing on schedule the plans for projects located in promising locations, benefiting from increasingly improved infrastructure.

A year of transformation in liquidity.

Mr. Vo Hong Thang, Deputy General Director of DKRA Group Joint Stock Company

Mr. Vo Hong Thang, Deputy General Director of DKRA Group.

2025 is expected to be a promising year for the market, especially given the market's recovery since the end of 2024. These positive signals are driven by policy factors, supply, infrastructure, and investment trends, promising to create a new growth cycle for the market.

One of the bright spots expected in the market in 2025 is the removal of supply bottlenecks, especially for projects that meet all legal requirements. Supply is projected to increase significantly in most segments compared to 2024, but there is still a considerable gap compared to the period before 2019.

In the Southern market, the apartment segment is projected to improve compared to 2024. Besides the improvement in supply, market liquidity will also see positive changes in 2025 as mortgage interest rates remain low, investor confidence gradually improves thanks to the market recovery in recent times, and especially as capital flows begin to shift towards the South as investors from the North start seeking investment opportunities in the Southern provinces. In this context, projects developed by reputable developers with guaranteed construction progress, clear legal status, and comprehensive infrastructure and amenities will be the top priority for investors in the coming period.

Overall, the apartment market in particular and the real estate market in general are expected to mark a positive change in 2025 and may enter a new growth cycle, supported by the following factors:

Firstly, in terms of policy, land management, housing, and real estate business policies have been revised and supplemented, bringing transparency and clarity to legal procedures. These regulations make it easier for investors to carry out legal procedures, thereby accelerating project implementation. In addition, mechanisms supporting land acquisition, compensation, land valuation, and fees have also been adjusted, creating favorable conditions for many new projects to be implemented and for previously suspended projects to resume in 2025 and subsequent years.

Besides positive policy news, infrastructure developments are also providing impetus to the market. The government is aggressively boosting public investment, focusing on strategic infrastructure projects such as the Ring Roads 3 and 4, the metro system, and inter-regional expressways connecting key economic centers. These projects not only improve inter-regional connectivity but also open up opportunities and create momentum for the development of the real estate market in the coming period.

Thirdly, deposit and lending interest rates have remained stable, along with well-controlled inflation. This not only supports real estate businesses in accessing capital but also makes it easier for homebuyers to access loan packages. Financial stability also helps restore confidence from investors and genuine buyers, two key groups that create sustainable demand for the market.

Fourth, buyer sentiment is gradually improving. After a period of stagnation, both investors and end-buyers have gradually returned to the market. Positive information regarding policies, infrastructure, and finance has contributed to building confidence, making buyers ready to make decisions. In particular, the landed house and apartment segments remain attractive due to their stability and long-term value appreciation potential. These remain preferred choices for many investors, especially as the market enters a new phase of recovery and growth.

Ready for a transformative mindset

Mr. Tran Duc Vinh, General Director of Tran Anh Group

Mr. Tran Duc Vinh, General Director of Tran Anh Group.

At the end of 2014, Tran Anh Group did not fully achieve its business and development targets. However, it was still considered a fairly stable year for the company as a recovery in growth had begun to take shape.

Following this recovery, Tran Anh Group has prepared itself for a new transformation in 2025. This includes launching a new project in Duc Hoa district, Long An province in the second quarter, and simultaneously accelerating the design and application process for two affordable housing projects for workers in Long An.

For Tran Anh Group, 2025 will be a busy year in implementing business plans that the company has had to put on hold for the past two years. This return is expected to be a turning point for the company's recovery and development.

Furthermore, 2025 is expected to be a promising year as the three new laws – the Law on Real Estate Business, the Law on Land, and the Law on Housing – have officially passed the initial implementation phase and come into effect. This is because each law, upon its enactment, always has a time lag to allow the newly enacted laws and subordinate regulations to take effect and to address shortcomings and inefficiencies in law enforcement by some state officials and civil servants.

And with the laws in effect, businesses expect that project legal procedures will be implemented more quickly, creating opportunities for real estate businesses to complete legal procedures sooner, accelerating the licensing process to 12 to 20 months instead of 36 months or more as is currently the case.

2025 will not only bring opportunities but will also present many challenges.

Mr. Ngo Quang Phuc, General Director of Phu Dong Real Estate Joint Stock Company

Mr. Ngo Quang Phuc, General Director of Phu Dong Group.

2024 was a very successful year for Phu Dong, marking another milestone in the real estate market as, in the final days of the year, the company handed over the first homes to customers, providing them with a new home to welcome the new year. This year also saw the launch of another project by Phu Dong at a mid-range price, meeting the real housing needs of customers in the South.

Entering 2025, Phu Dong Group anticipates a year full of expectations for entirely new plans. These include launching new projects, continuing to finalize project handovers to customers, and completing the construction and topping out of an existing apartment project.

However, amidst this positive outlook, our company recognizes that real estate businesses will still face significant challenges in the market. These include increased sales competition, as a large number of properties are projected to be launched by developers in 2025, putting considerable pressure on them to sell their properties.

Another difficulty is that provinces and cities still struggle to find land valuation units for businesses to fulfill their financial obligations regarding land use fees to the state. This will be a barrier for businesses to complete the legal procedures for their projects and be able to sell their properties…

Overall, the real estate market in 2025 remains an unpredictable unknown, however, I believe it will continue the recovery momentum of 2024. Although a significant breakthrough is unlikely in the first one to two quarters, clearer improvements are expected from around the second half of the year.

Furthermore, there continues to be differentiation between segments and regions, primarily in the residential real estate sector serving genuine housing needs, with demand remaining consistently high. Specifically, the apartment segment in the South is dominated by Ho Chi Minh City and Binh Duong. In the North, the focus is on Hanoi, Hai Phong, and Hung Yen. In the Central region, Da Nang is expected to continue to be the market's focal point, especially for projects with good locations, complete amenities, and reasonable prices.

A challenging year for real estate corporate finance.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA)

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association.

2025 will be a financially challenging year for real estate businesses, as the period from around August to the end of 2025 will see the maturity of privately issued corporate bonds after a two-year extension under Decree 08/2023/ND-CP, totaling approximately VND 180,000 billion, the highest in the three years from 2023-2025. Therefore, to secure the financial resources to pay off these maturing bonds, businesses will work tirelessly to develop their operations, launch new projects, complete handovers, and generate cash flow to restore their financial stability.

Source: https://baodautu.vn/batdongsan/doanh-nghiep-dia-oc-du-bao-va-ky-vong-gi-o-nam-2025-d237521.html