Real estate market changes strongly, investor sentiment improves, legal issues are resolved

VARS forecasts that the real estate market will continue to recover in the second half of 2025. (Photo: Viet An)

According to research units, in the past 6 months, the number of businesses returning to operate in the real estate sector increased sharply by 76% compared to the same period in 2024. The number of newly established businesses also increased by 15%, and the total registered capital increased by 20%.

On average, about 430 new businesses are born each month, showing great expectations for the recovery period.

Not only increasing in quantity, existing businesses are also proactively expanding their scale and boosting recruitment, demonstrating a clear change in market sentiment and medium- and long-term investment vision.

Mr. Le Dinh Chung, member of the Real Estate Market Research Working Group (Vietnam Association of Realtors - VARS), General Director of SGO Homes informed that the total apartment supply in the second quarter of 2025 reached more than 36,000 products, 2.5 times higher than the previous quarter.

In the first 6 months of the year, the market recorded 64,000 products, equal to 80% of the supply for the whole year 2024.

However, the supply structure is still out of sync with real housing demand, with the high-end segment accounting for 62%, of which luxury apartments increased by 16 percentage points compared to the same period last year. In contrast, mid-range and affordable apartments show signs of slowing down, although social housing projects have increased slightly, they still cannot meet demand.

In addition, regional differentiation is also very clear. The North leads with 53% of supply, while the South contributes only 34%, despite the return of large-scale projects. Supply continues to be led by large investors, notably Vinhomes with more than 50% of products launched in the second quarter of 2025.

Analysts say the first half of the year saw apartment prices continue to set new levels. Hanoi recorded an average price of VND75.5 million/m2, up nearly 88% compared to the base period.

Ho Chi Minh City reached 77.1 million VND/m2, while Da Nang recorded 66.4 million VND/m2 - 69.8% higher than the same period. Despite the high price increase, the transaction volume remained positive.

The entire market recorded about 40,000 transactions in the first 6 months of the year, double that of the same period in 2024 and more than 5 times that of the same period in 2023. Both high-rise and low-rise apartments were well absorbed, thanks to "cheap" cash flow and expectations of price increases.

However, a large number of investors are not under financial pressure so they do not have the tendency to sell at a loss, while the group of customers buying for real estate is gradually shifting to suburban areas with improved infrastructure.

VARS forecasts that the real estate market will continue to recover in the second half of 2025. Improved investor sentiment, low interest rates, legal relief and strong infrastructure investment are solid supporting factors. If the South maintains its planned launch schedule, it may approach the supply proportion of the North.

However, many challenges still exist such as: increasing housing prices due to rising input costs; imbalance between infrastructure and population; accessibility to housing for middle-income people is increasingly out of reach...

Therefore, VARS recommends continuing to promote the development of social housing in large cities; requiring the allocation of at least 20% of land funds for social housing; issuing unified guidelines for verifying social housing buyers; speeding up the progress of key infrastructure projects; and studying mechanisms to regulate capital flows into segments serving the majority.

In particular, businesses are encouraged to integrate social factors into project development, aiming for sustainability.

Source: https://baoquocte.vn/thi-truong-bat-dong-san-chuyen-minh-manh-me-tam-ly-nha-dau-tu-cai-thien-phap-ly-duoc-thao-go-321761.html