Vietnam's property market to prosper in 2025: execs

Corporate leaders expect the Vietnamese real estate market in 2025 will prosper when bottlenecks are removed and administrative procedures are eased.

Le Viet Hai, chairman of Hoa Binh Construction Group

I think the real estate market in 2025 will be much better as there have been quite positive changes, first of all from the Government and state management agencies.

Party General Secretary To Lam is very drastic in handling bottlenecks and administrative procedures to remove difficulties for the real estate sector. The effectiveness is there, typically the legal clearance for Novaland - a leading real estate developer in Vietnam.

Second, Vietnam continues to attract large investments from "eagles" in the world. Nvidia and the Vietnamese Government last December signed a deal to jointly set up an AI R&D center and an AI data center in Vietnam. Nvidia's investment will affect not only the information technology sector but also many other fields.

Third, the tourism sector is expected to see positive changes in 2025, with the number of foreign visitors restored to the pre-pandemic level.

Especially, after Donald Trump became President of the United States, I believe the Russia-Ukraine war would end, boosting the tourism sector and the global economic recovery. Russia and Ukraine are not small sources of visitors for Vietnam.

Fourth, the Government is promoting the completion of many public investment projects and starting many new large-scale projects. This will be a major driver of economic growth in 2025, which can far exceed the 7.09% recorded in 2024.

Hoa Binh Construction is engaged in residential real estate, resort development, industrial construction and infrastructure. Of these, the two main segments are residential real estate and resorts which account for more than 90% of our revenue.

With the recovery of the real estate market, the company's civil construction segment is expected to recover. In 2024, our contract value reached VND9,000 billion ($358.9 million).

Overall, Hoa Binh's business situation is improving but still difficult. In 2025, I predict it will be much better.

Pham Anh Khoi, director of investment at Vinhomes

2023 was the most difficult year for the Vietnamese property market in terms of both supply and demand, especially demand in the context of rising interest rates. The current lending rate is about 6%, but it was up to 12-13% in 2023, even up to 16% at some banks.

In 2024, when doubts were removed, the market recorded signs of recovery but the recovery was uneven. The property market in the northern region, especially in the suburbs of Hanoi, Hai Phong city, and the provinces of Vinh Phuc, Bac Giang and Bac Ninh, much improved. On the contrary, in Ho Chi Minh City and the surrounding areas, it was still gloomy.

In particular, the July to December 2024 period was the busiest time not only for Vinhomes but for the entire industry to prepare for a new cycle. I expect 2025 to be a year of many changes for the better compared to 2024, with a more even recovery spreading to the southern region and more supply for Ho Chi Minh City and suburban areas.

In addition, an advantage for real estate businesses that the market has not yet realized is construction costs. In 2024, the cost was much lower than in 2022 and 2023. In 2025, the construction cost per square meter of Vinhomes' products is expected to be much lower than the peak of 2023 and lower than 2024. This is a very good point for property developers and will be reflected in 2025.

In 2024, Vinhomes was a rare listed developer launching products to the market. Those were the Vinhomes Royal Island project (Vu Yen island, Hai Phong city) and the Vinhomes Global Gate project (Dong Anh district, Hanoi). In the southern region, The Opus One apartment subdivision (Vinhomes Grand Park, Thu Duc city), developed by Vinhomes and Japanese partner Samty, was launched on August 28, contributing to the increase in apartment supply for the southern market.

In 2025, we will continue to offer large quantities of products to the market. In the northern region, our company will open for sale projects in Hanoi, Hai Phong and the suburbs of HCMC such as Long An and Can Gio. These are all areas with great housing demand but supply, especially near HCMC, is limited.

Ngo Quang Phuc, general director of Phu Dong Group

By the end of 2024, the real estate market had certain bright spots, but to make a breakthrough, more time is needed. The recovery of the housing segment in large cities will create liquidity and be a driving factor for the market.

In addition, signs of economic recovery and efforts to bring new amended laws such as the Housing Law, Real Estate Business Law, and Land Law to life have contributed to improving investor sentiment and removing legal entanglements.

In 2025, Phu Dong Group has many business plans. Specifically, Q1 is the time when we will hand over houses to customers at the Phu Dong Sky Garden project in Di An town of Binh Duong province. We will also continue to launch the Phu Dong Sky One apartment project, also in Di An.

Regarding new project development plans, we are actively completing the legality of three apartment projects in Di An. In particular, the largest project, about eight hectares, includes apartments and townhouses.

At the same time, we are actively looking to buy land funds to carry out projects in the near future. Currently, we still focus on the Binh Duong market. Our land funds in HCMC are still in the legal completion stage.

Le Nhu Thach, chairman of Bcons Group

For a long time, Bcons Group has focused on the affordable housing segment to be able to access a wider market, creating a foundation for long-term, solid development. Notably, we have never been late in handing over houses to customers and this is also the group's motto.

It can be seen that currently, the demand for housing is very large, especially in the context of skyrocketing house prices. Affordable apartments are increasingly scarce and those valued under VND1 billion ($39,870) disappeared from the market.

However, the supply of social and affordable housing is still very limited, forcing many people to live in cramped, low-quality rented houses that lack basic amenities, affecting the quality of their life and health.

Given the huge demand, our business wants to invest in the affordable housing segment to meet the needs of the majority of home buyers. Not only meeting the real needs, this segment is also attractive to investors who do not have too much capital and can buy to rent or accumulate assets.

In the coming years, Bcons plans to launch about 12,000 apartments to the market, with the goal of achieving full occupancy rates.