The Vietnamese real estate market is entering a new growth cycle.

The Vietnamese real estate market is entering a new growth cycle thanks to high demand for housing, stable FDI inflows, and continuously expanding transportation infrastructure.

The year 2025 promises a more favorable market outlook, with a clear divergence in house prices between Hanoi and Ho Chi Minh City, while investment tends to flow back into sustainable segments.

Affordable prices will help young people shorten the time it takes to own a home.

This was the assessment of many real estate market analysts at the Vietnam Real Estate Conference (VRES 2025) themed "New Momentum, Steady Rhythm," held on December 11th in Ho Chi Minh City. The conference attracted a large number of experts, investors, and real estate brokers.

The event attracted considerable interest from investors and real estate brokers.

Mr. Le Bao Long, Marketing Director of Batdongsan.com.vn, said that persistently high real estate prices are putting significant pressure on young people's ability to own a home. However, instead of being pessimistic, many have proactively changed their financial strategies, tightened spending, and increased savings to get closer to their goal of owning a home.

A survey of over 1,000 consumers by Batdongsan.com.vn revealed a clear differentiation in the psychology and behavior of the 18-44 age group, with four prominent trends. Notably, 93% of married people with children who are currently renting said they aim to buy a house within the next 5 years, although they acknowledge that price remains a major barrier. Within this group, 86% are willing to borrow from banks at a rate of 30-50% of the property value, indicating an increasingly practical approach to financial leverage.

A view of the Vietnam Real Estate Conference 2025 in Ho Chi Minh City.

Another noteworthy point is the significant disparity in housing demand between the two major cities. In Ho Chi Minh City, the demand for home ownership in the next 5 years reached 81%, considerably higher than Hanoi (69%). The main reason stems from the fact that the supply of apartments priced under 3 billion VND in Ho Chi Minh City accounts for 21-31% of the total inventory, while in Hanoi it is only about 10%. The concentration of housing prices in the mid- and high-end segments has led to a sharp decrease in demand from genuine homebuyers.

According to Mr. Le Bao Long, in addition to individual efforts, simplifying social housing procedures, making eligibility conditions transparent, and expanding the supply of affordable housing will help young people shorten their journey to finding a home.

Regarding long-term tenants, Mr. Long believes this is a potential customer segment for cash flow real estate models. 72% of tenants spend less than 30% of their income on rent, and 34% plan to rent for 3 years or more. The most important factors include property quality, amenities, location, and living environment. When investors focus on improving quality instead of just providing "a place to live," the rental portfolio will be stable and generate sustainable cash flow.

Reorganizing administrative units opens up new growth poles.

In Vietnam, Thu Thiem (Ho Chi Minh City) and Da Nang are at a pivotal moment: developing into new central hubs of the Industrial Park (IFC) or becoming extensions of existing CBDs. Success depends on clearly defining the IFC model, developing iconic landmarks, completing inter-regional and intra-city infrastructure, and establishing mechanisms to attract businesses and organizations.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, presented his paper at the conference.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that the new legal framework from the amended Land Law and Real Estate Business Law helps increase transparency and improve project implementation processes. Land prices in many localities in 2025 will still be lower than the peak in 2022, helping the market maintain stability and reduce risks. Currently, there are no signs of widespread land speculation; hotspots are mainly related to administrative boundary mergers, and transactions are still concentrated in apartments and private houses in major cities.

“In the short term, the market may still be exploring, but in the medium and long term, the recovery cycle began in 2024 and there is still plenty of room for growth. I believe that 2026 will be the time when the market clearly differentiates and enters a more stable trajectory. A tense scenario like in 2022 is unlikely to repeat,” Mr. Quoc Anh commented.

Mr. Quoc Anh added that house prices also reflect a clear disparity between the two cities. In Hanoi, prices have increased sharply for three years: 14% in 2023, 39% in 2024, and 13% in 2025. Meanwhile, Ho Chi Minh City only saw increases of 3%, 4%, and 5% respectively. The level of interest in searching for properties in Ho Chi Minh City will only recover from the beginning of 2025, while Hanoi remains "hot." Notably, the number of searches for houses in Ho Chi Minh City from Hanoi users increased by 49% in Q3/2025 compared to Q2. The supply in the city center continues to be scarce, forcing young buyers to shift to suburban areas – where there are many well-planned urban areas with complete amenities and convenient transportation connections.

In Ho Chi Minh City, the Ben Thanh - Suoi Tien metro line is already operational. The Ben Thanh - Can Gio metro line is scheduled to begin construction on December 19th, and the Ben Thanh - Tham Luong metro line on January 15th, 2026, aiming for completion and operation between 2028 and 2030. This will restructure the urban space towards development towards the suburbs.

The Southern Region Real Estate Broker Award 2025 was presented at the conference.

According to Ms. Nguyen Thi Thanh Huong, Vice President of the Vietnam Real Estate Brokers Association, 2025 will be a vibrant year with many new projects across the country. In particular, the southern region will see numerous projects across diverse segments, from mid-range to high-end. Projects with transparent legal procedures and reputable developers are recording high absorption rates, especially along ring roads and integrated urban areas.

2025 also marks the completion phase of many key infrastructure projects: the Ring Roads 2, 3, and 4; inter-regional expressways; the metro and North-South railway... Completed infrastructure leads to urban expansion, creating new growth opportunities for both businesses and localities.

According to Ms. Huong, the reorganization of administrative units also helps to open up new growth poles. As geographical boundaries and management scales expand, many areas have the opportunity to break through, attract investment, and promote stronger market development. On a stable macroeconomic foundation, with restored market confidence and increasingly evident corporate restructuring, the period from 2026 to 2028 is predicted to be a new growth cycle for Vietnam's real estate market.

Delegates experienced smart real estate technology at the event.

“To thoroughly solve the housing problem, a coordinated role between the State and businesses is needed. In the past, the Government has implemented many solutions to develop social housing products, while businesses have offered affordable housing. Currently, as far as I know, there are many projects in areas surrounding Ho Chi Minh City with prices ranging from 30 to 40 million VND/m², which is very suitable for the affordability of most workers.”

"We also hope that the Government will have mechanisms and policies to support and encourage investors to develop housing products that are suitable for the majority of people in the future," Ms. Nguyen Thi Thanh Huong shared.

Source: https://baotintuc.vn/bat-dong-san/thi-truong-bat-dong-san-viet-nam-dang-buoc-vao-chu-ky-tang-truong-moi-20251211153144985.htm