The apartment market is booming.

Forecasts indicate that the real estate market will witness strong growth in the second half of 2025.

After a long period of stagnation, the real estate market is beginning to show optimistic signs. From the launch of numerous new projects to strong growth in liquidity, experts believe this is a pivotal stage for the recovery cycle of the entire industry.

Simultaneous launch

In early November 2024, the Masteri Grand View project, part of The Global City urban complex (Thu Duc City, Ho Chi Minh City) and developed by Masterise Homes, officially launched amidst a supply shortage in the Ho Chi Minh City market. Comprising two 25-story towers and 616 apartments, the project attracted over 5,000 real estate professionals to its launch event. Although the official selling price has not yet been announced, brokers predict it will be no less than 100 million VND/m².

A Nam Long apartment project that launched for sale in Can Tho City on November 17th has attracted considerable interest.

In October, many other high-end apartment projects also attracted attention thanks to their location and amenities. For example, Lavida+ in Phu My Hung, District 7, Ho Chi Minh City, by Quoc Cuong Gia Lai Joint Stock Company, has sold almost all of its remaining apartments at an attractive price of 50 million VND/m² - lower than neighboring projects.

In the mid-range and affordable segments, projects like Conic Boulevard (Binh Chanh District, Ho Chi Minh City) attract market attention thanks to their reasonable prices (2.3-2.4 billion VND/2-bedroom apartment) and the possibility of immediate occupancy. Meanwhile, the recently announced TT AVIO project in Binh Duong has garnered attention due to its price starting from only 1.23 billion VND/1-bedroom apartment, 20%-50% lower than other projects in the area, and built to Japanese apartment standards.

Ms. Tran Thi Khanh Linh, Deputy Director of the Investment Advisory Department at Savills, commented: "High-end projects located in the city center or integrating many amenities are strongly attractive, especially as the market begins to recover and buyers are more interested in long-term value."

Mr. Nguyen Van Tung, General Director of Danh Khoi Real Estate Services Joint Stock Company (DKRS), stated: "Projects that meet real needs and are affordably priced will have higher liquidity. This is because buyers today are increasingly cautious, prioritizing clear legal status and guaranteed construction progress."

According to a report by DKRA Group, the Ho Chi Minh City apartment market in October 2024 recorded several positive signs, with a slight increase in primary supply. Prices for newly launched apartments ranged from approximately VND 30 million/m² to VND 493 million/m², reflecting continued pressure from high input costs. Market demand continued its positive recovery, with apartment sales increasing by 93% year-on-year. Notably, some projects in provinces bordering Ho Chi Minh City recorded price increases of 3%-8% compared to previous launches, indicating a shift in demand from the city center to surrounding areas.

In addition, liquidity in the secondary market continues to recover, focusing on projects that already have land ownership certificates or are in the handover preparation phase. With many developers planning to launch new products in the near future, the supply of primary apartments is expected to see a significant improvement, especially in the second half of November 2024.

The market will be very active.

The Dat Xanh Services Institute for Economic, Financial, and Real Estate Research (FERI) forecasts that in the last months of the year, the real estate market will receive approximately 11,000 new products, a 30% increase compared to the previous quarter. The apartment segment continues to lead with over 9,300 products, accounting for 80% of the new supply. In particular, the Southern region is expected to experience strong growth with nearly 6,500 products – 2.5 times more than in the third quarter.

The average absorption rate is expected to reach 35%-40%, with primary market prices increasing by 5%-10%. In key markets such as Ho Chi Minh City and Hanoi, the increase could reach 10%-20%, mainly in the apartment segment. "The Vietnamese real estate market is shifting from a 'defensive' to an 'offensive' phase. Despite remaining challenges such as high input costs and slow legal procedures, experts agree that this is a good time to prepare for a new growth cycle," an expert from the institute assessed.

According to Ms. Tran Thi Khanh Linh, the simultaneous entry into force of laws related to the real estate market from August 2024 is considered a significant turning point, creating confidence for investors. "A stable and transparent legal environment will help shorten project approval times and increase attractiveness for investors. This is a prerequisite for the market to flourish in the coming period," Ms. Linh commented.

According to Mr. Pham Hong Thang, Deputy General Director of DKRA Group, the real estate market in Ho Chi Minh City and neighboring provinces such as Binh Duong and Dong Nai is showing many positive signs, especially in the context of limited supply.

Mr. Thang predicted that with a series of new projects expected to be launched at the end of November, the supply of apartments will see more significant changes. In particular, Binh Duong is currently leading in the implementation of new projects, thanks to favorable legal conditions and readily available land, making the market more vibrant.

According to Mr. Thang, most developers are implementing preferential policies to stimulate demand, including interest rate subsidies, bank loan grace periods, and other promotional programs. These policies not only increase liquidity but also create more attractiveness for the market.

Forecasting for the second half of 2025, with increasingly open legal policies and new laws coming into effect, the real estate market will witness strong growth. Real estate prices are expected to continue rising, especially in areas with complete legal projects and well-invested infrastructure. "The market is gradually warming up; positive signals from supply and demand indicate that this is a good time for both buyers and investors to start playing again," Mr. Thang shared.

Mr. Nguyen Van Tung commented: "The end of the year is always a vibrant period for the market. Affordable projects or those in the high-end segment with guaranteed legal compliance will continue to be the focus of customer attraction."

Lack of projects for mergers and acquisitions.

According to Ms. Tran Thi Khanh Linh, the Vietnamese real estate market currently offers many opportunities for investors, especially in the field of mergers and acquisitions (M&A) of potential projects or collaborative development with local partners. Market demand is increasingly diverse, focusing on different segments, from residential to industrial and office buildings.

For foreign investors, the demand for residential real estate remains very high. However, they consistently set high legal requirements, demanding that projects have detailed 1/500 scale planning and even notice of land use fee payment. Despite this, the legal approval process for residential real estate projects is currently slow due to ongoing adjustments to relevant laws. This limits the supply of residential projects, forcing foreign investors to shift their focus to industrial and office projects – which have clearer legal status, are ready for operation, and are easier to acquire through M&A.

Source: https://nld.com.vn/thi-truong-can-ho-soi-dong-196241118203327349.htm