Apartment prices are skyrocketing, far exceeding their real value. This segment is expected to bring the best profits in 2025.

Apartment prices far exceed their real value, transactions surpass those of townhouses and land plots, and apartments in central Hanoi promise the best returns in 2025… these are the latest real estate news.

Primary apartment prices are continuously rising and show no signs of stopping, driving and maintaining high secondary apartment prices that far exceed their true value. (Photo: Linh An)

Top 3 cities with the highest growth in 2024

According to a report by the Vietnam Association of Real Estate Brokers (VARS), the real estate market in 2024 has passed its most difficult phase.

Overall in 2024, the market recorded approximately 81,000 products offered for sale, an increase of over 40% compared to 2023. Of these, 65,376 were new products, about three times more than in 2023 but only about 7% of the number in 2018. In the fourth quarter of 2024 alone, the market recorded 28,000 new products offered for sale, double the number from the previous quarter and four times the number in the same period of 2023.

Transaction volumes in 2024 continued to grow steadily as supply improved. Overall in 2024, the entire market recorded over 47,000 successful transactions, equivalent to an absorption rate of 72%.

Notably, the apartment segment has seen a sharp increase in prices across many markets. According to a VARS study of 150 selected projects, by the end of 2024, the average selling price in Hanoi had increased by 72.4% compared to Q2/2019. This was followed by Da Nang with a 49.9% increase, while Ho Chi Minh City witnessed a slower increase of approximately 34.3%.

Primary market prices are continuously rising and show no signs of stopping, driving and maintaining high secondary market apartment prices that far exceed their true value.

Along with that, the price of subdivided land plots with complete legal documentation has also recovered and grown strongly amidst a decrease in land supply due to stricter regulations on land subdivision and sale. In particular, low-value land plots, priced at around under 30 million VND/m2 in cities with developed infrastructure or planned development, are highly sought after, with prices increasing by 15% compared to the end of the previous year.

The VARS report also indicates that investors tend to seek residential land in suburban provinces and cities with reasonable prices and significant growth potential due to benefits from infrastructure and urban planning, while residential land prices in the two major cities of Hanoi and Ho Chi Minh City have continuously increased and established new high levels, exceeding the accessibility of most customers.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, commented that the real estate market is still moving positively. Liquidity in the market tends to decrease slightly in the high-end segment but remains stable with housing products that meet real housing needs and have reasonable prices.

VARS believes that, for the market to recover and develop in a safe, healthy, and sustainable direction, investors need to ensure prices are in line with market purchasing power, instead of focusing on short-term profits.

Two segments will attract investor interest.

According to Mr. Tran Quang Trung, Business Development Director of OneHousing, due to changes in macroeconomic policies, project development plans, and product launches by investors, the real estate market in 2025 will have two segments that will attract investor attention.

Firstly, there are apartments, which will meet the needs of both cash flow investors and investors looking for price appreciation. Apartments are a segment with a moderate total price, making them accessible to many investors, and the demand for apartments in the future remains very high. Considering the same investment level, apartments are demonstrating superior value compared to townhouses and land properties in terms of rental yield and price appreciation.

According to OneHousing's Market Research and Customer Insights Center, prior to the first quarter of 2024, the ratio of transactions between apartments and land plots in Hanoi was approximately 40-60%. However, from the second quarter of 2024, with the rapid increase in demand for apartment products, this balance reversed – with apartment transactions surpassing those of land plots.

The second segment, which many investors are targeting, is low-rise properties within large-scale projects, or land plots with well-developed infrastructure that can be developed into residential units. The market in 2025 will also see a larger share allocated to this segment.

The expert advises investors to carefully consider their capital when entering the market at this time, determining long-term investment of 2 to 3 years from the time of purchase until receiving the property. Alternatively, they should buy with the purpose of holding assets or generating rental income, rather than engaging in short-term speculative investments, as this is an extremely risky and unsustainable form of investment.

Which segment will yield the best profits in 2025?

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, believes that apartments in central Hanoi are an option that investors can consider. This product line possesses many characteristics that greatly determine the profitability of the investment.

According to the Chairman of the Vietnam Real Estate Brokers Association, during the period from 2018 to 2023, the supply of apartments in central Hanoi consistently remained low, along with the overall decline in supply across Hanoi. By 2024, the supply of apartments in Hanoi began to grow again, but mainly concentrated in suburban areas, far from the city center, accounting for more than 90%.

The supply of apartments in the central area, including Hoan Kiem, Ba Dinh, Dong Da, and Hai Ba Trung districts, remains very scarce. Preliminary figures for 2024 indicate that the central area will only see approximately 400 new units launched, with only 3 new projects, representing only about 30% of the 2023 figure.

The supply of apartments in Hanoi's central districts remains low and is becoming increasingly scarce due to the dwindling land available for development and strict regulations on building height and density, resulting in a limited supply entering the market. In particular, real estate prices in the central area are trending upwards, driven by strong demand from economic and urban development. The average apartment price in the four central districts of Hanoi has doubled since the beginning of 2019, exceeding the average increase for the entire city by 30%. Among these, Hai Ba Trung and Dong Da districts have experienced the best price increases over the past five years.

New projects launched in the last three years have also seen continuous price increases, around 10% after each sales phase. Specifically in 2024, newly launched luxury apartment projects in the central area had common prices starting from 125 million VND/m2.

Serviced apartments are priced at approximately 88 million VND/m2 (excluding VAT and maintenance fees). Rental prices are rising rapidly, exceeding the overall market increase due to both general trends and scarcity, estimated to be around 15% higher than the same period last year.

According to Mr. Dinh, the demand for apartments, including both investment and residential purposes, in the central area remains consistently high, especially for luxury properties. The primary supply is limited and is absorbed quite well with the release of new units in small batches.

The preliminary absorption rate of new supply in 2024 is estimated at 50%. The occupancy rate for rental apartments consistently remains above 80% and is showing a steady upward trend. Transactions in the area mainly occur in the secondary market due to the limited primary supply.

Mr. Dinh emphasized that the four central districts of Hoan Kiem, Ba Dinh, Dong Da, and Hai Ba Trung are always sought after by investors due to their prime locations and top-quality, modern social infrastructure. These districts are also home to the headquarters of major businesses, corporations, and embassies.

As a result, properties located in these areas have easy access to restaurants, cafes, shopping malls, international hospitals, and entertainment venues, catering to the needs of high-end tenants. In particular, the planning for the four central districts until 2030, with a vision to 2050, aims to create an area that brings together many high-quality living spaces, thus creating an ideal living environment for residents.

Land auctioned in districts bordering Hanoi fetched the highest price, exceeding 76 million VND/m2.

The Land Development Center of Quoc Oai District, in coordination with Joint-Stock Auction Company No. 5 - National, recently successfully auctioned off 26 land plots (LK2, LK6) in the land use rights auction area DG31/2019 in Yen Quan village, Tan Phu commune, Quoc Oai district (Hanoi).

The auctioned land plots range in size from 73.2 to 101.5 m2, with a starting price of 4.7 million VND/m2.

After nearly 14 hours, the auction of 26 land plots was successfully completed. The highest winning bid was 76.7 million VND/m2, approximately 16 times the starting price, while the lowest was 40.7 million VND/m2, more than 8.6 times higher than the starting price.

Quoc Oai district collected nearly 133 billion VND from this auction, a difference of over 121 billion VND compared to the starting price.

Earlier in November, Quoc Oai district successfully auctioned off dozens of land plots in Yen Quan village, Tan Phu commune. The highest winning bid was 94.7 million VND/m2 and the lowest was 70.7 million VND/m2.

According to the People's Committee of Quoc Oai District, in 2024, the district successfully organized 7 auction sessions across 6 projects, involving 161 land plots with an area of ​​over 14,920 m2. The total winning bids amounted to over 825.3 billion VND.

This January, the National Joint Auction Company No. 5, in coordination with the Land Fund Development Center of Quoc Oai District, will continue to auction the right to use 26 land plots (LK1, LK2 areas) which are assets of the People's Committee of Quoc Oai District.

26 land plots are being auctioned as part of the infrastructure construction project for the land use rights auction area DG 31 in Yen Quan village, Tan Phu commune, Quoc Oai district.

The land plots range in size from 85-122m2. The starting price is 4.7 million VND/m2; equivalent to 399.5 million to over 573 million VND per plot.

The deadline for selling and receiving auction documents is 5 PM on January 15th.

The auction will be conducted through multiple rounds of direct voting, with a minimum of six mandatory rounds. The voting process ends when no one bids further. Bidding will be ascending. The auction will take place on the morning of January 18th.

Source: https://baoquocte.vn/bat-dong-san-gia-chung-cu-tang-chong-mat-vuot-xa-gia-tri-thuc-nhan-dinh-phan-khuc-se-mang-lai-loi-nhuan-tot-nhat-nam-2025-299638.html