Vietnam’s real estate market poised for growth in 2025: expert

Vietnam’s real estate market is set for a promising 2025, driven by low interest rates, rising investor confidence, and a shift in capital flow from the North to the South, said Vo Hong Thang, director of consulting & project development at DKRA Group.

Apartment segment to lead the way

Thang forecast that 2025 will be a year of growth, spurred by the market’s recovery starting in late 2024. Key drivers include policy reforms, increased supply, infrastructure development, and shifting investment patterns, which together promise to ignite a new growth cycle.

“The easing of supply bottlenecks, especially for projects meeting legal requirements, will be a major highlight this year,” Thang said. “Supply is expected to grow significantly across most segments compared to 2024, though it will still fall short of the levels seen before 2019.”

In the southern region, the apartment segment is expected to improve, with over 15,000 units slated to enter the market. However, supply will remain concentrated in Ho Chi Minh City and neighboring Binh Duong province, which is predicted to become a hub for mid-range (B and C) apartments.

This shift reflects an ongoing trend of investors moving away from the central areas of HCMC, where land availability becomes increasingly scarce and development costs rise, he said, adding that legal bottlenecks remain unresolved, prompting investors and developers to seek opportunities in surrounding regions as a strategic move.

In the northern region, apartment supply is expected to continue its upward trajectory from 2024, with a focus on Hanoi, Hung Yen, and Hai Phong. Projects in Hanoi will mainly be concentrated in the western and eastern districts, particularly Dong Anh, Gia Lam, and Nam Tu Liem.

Thang held that with improvements in supply, the market’s liquidity is also anticipated to improve in 2025. Investor confidence is expected to increase as interest rates remain low, and more capital flows southward, with northern investors seeking opportunities in southern provinces.

Reputable developers with strong track records in construction progress, clear legal documentation, and well-developed infrastructure will be in high demand as investors focus on reliable, high-quality projects, he added.

Both primary and secondary property prices are expected to rise this year, driven by increased input costs and the rising expense of project development. The anticipated adjustment of land prices will likely lead to higher compensation costs for land clearance, further pushing up development costs for real estate businesses.

In the secondary market, prices may see increases, particularly for projects with fast construction progress, completed homes, and ownership certificates. This rise in secondary prices will gradually close the gap between primary and secondary prices, offering more choices to buyers and enhancing investment opportunities.

A new growth cycle

The real estate market in 2025 is poised for a new growth cycle, supported by several key factors, according to the DKRA expert.

First, policy changes related to land, housing, and real estate business management have created greater transparency in legal processes, making it easier for developers to navigate legal procedures and accelerate project development. In addition, revised mechanisms for land recovery, compensation, and valuation will foster new projects and revive stalled ones.

Second, infrastructure development continues to be a major catalyst. The government is investing heavily in strategic projects like the HCMC Ring Roads 3 and 4, metro systems, and inter-regional expressways connecting key economic hubs. These improvements will boost regional connectivity and unlock new opportunities for the property market.

Stable interest rates and controlled inflation will further support the market, making it easier for businesses to access capital and for buyers to secure loans. This financial stability will help restore confidence among both investors and end-users, leading to sustained demand.

After a period of uncertainty, investors and end-buyers are gradually returning to the market. Positive news on policies, infrastructure, and finance has instilled confidence, prompting more buyers to make decisions. In particular, the landed house and apartment segments continue to be popular for their long-term value appreciation potential, making them top choices for investors.

Overall, while the 2025 real estate market remains unpredictable, it is expected to continue the recovery trend that began in 2024. Although breakthroughs may be slow in the first half of the year, the market is projected to show more positive signs in the second half, Thang said.

There will also be differentiation among property segments and regions, with residential properties catering to genuine demand taking the lead, he noted. The southern apartment market, especially in HCMC and Binh Duong, is likely to be a standout, while northern markets like Hanoi, Hai Phong, and Hung Yen will continue to attract investment. Central Vietnam, with Danang at the forefront, is expected to remain a focal point, especially for projects offering excellent locations, comprehensive amenities, and competitive prices.