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Thinking about buying a 3-bedroom apartment in Hoan Kiem District? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Tay Ho or District 2 in Ho Chi Minh City where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Vietnam Property Pack.
Will property prices increase in Vietnam in 2025?
Yes, property prices in Vietnam are expected to rise in 2025, driven by a combination of economic growth and increasing urbanization.
Backed by our fresh, in-depth market analysis, we’re confident that Vietnam remains an attractive market for both domestic and international investors.
While there are challenges such as inflation and regulatory changes, the underlying factors supporting price growth are strong.
Vietnam's rapid urbanization and economic development continue to fuel demand for real estate, particularly in major cities like Ho Chi Minh City and Hanoi.
Signals pointing to a property price increase in Vietnam
Here are some factors suggesting prices could increase:
Vietnam's economy is projected to continue its robust growth trajectory, which typically correlates with increased property demand and rising prices.
Urbanization is accelerating, with more people moving to cities for better job opportunities, thereby increasing demand for housing in urban areas.
Foreign direct investment in Vietnam's real estate sector is expected to rise, bringing in capital and expertise that can drive up property values.
Infrastructure development, such as new transportation projects, is set to improve connectivity and accessibility, making certain areas more attractive and potentially increasing property prices.
The Vietnamese government is implementing policies to support the real estate market, such as easing restrictions on foreign ownership, which could boost demand.
The growing middle class in Vietnam is increasing its purchasing power, leading to higher demand for quality housing.
Tourism is expected to rebound strongly, boosting demand for properties in tourist hotspots and potentially increasing prices in those areas.
Signals pointing to a property price decrease in Vietnam
Here are some factors suggesting prices could fall:
Inflationary pressures could lead to higher living costs, reducing disposable income and potentially dampening demand for property.
Rising interest rates could make mortgages more expensive, discouraging potential buyers and slowing down the property market.
Regulatory changes or increased taxes on property transactions could impact investor sentiment and reduce market activity.
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If property prices go up in Vietnam, how much would they increase by?
If real estate prices in Vietnam were to rise in 2025, the increase would likely be around 5% to 10% of their 2024 values.
Typically, real estate in emerging markets like Vietnam appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Ho Chi Minh City for 2 billion VND today, don't be surprised if it's priced between 2.1 billion and 2.2 billion VND this time next year.
To give you a better understanding, here is a table that shows 7 types of Vietnamese real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
Type of Property | Average Price in 2024 (VND) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
---|---|---|---|---|
Condominium (60 sqm / 646 sqft) | 2,500,000,000 VND | 2,625,000,000 VND | 2,675,000,000 VND | 2,750,000,000 VND |
Modern Apartment (75 sqm / 807 sqft) | 3,500,000,000 VND | 3,675,000,000 VND | 3,745,000,000 VND | 3,850,000,000 VND |
Luxury Villa (100 sqm / 1,076 sqft) | 8,000,000,000 VND | 8,400,000,000 VND | 8,560,000,000 VND | 8,800,000,000 VND |
Studio (30 sqm / 323 sqft) | 1,200,000,000 VND | 1,260,000,000 VND | 1,284,000,000 VND | 1,320,000,000 VND |
Loft (80 sqm / 861 sqft) | 4,000,000,000 VND | 4,200,000,000 VND | 4,280,000,000 VND | 4,400,000,000 VND |
Townhouse (150 sqm / 1,615 sqft) | 10,000,000,000 VND | 10,500,000,000 VND | 10,700,000,000 VND | 11,000,000,000 VND |
Investment Property (50 sqm / 538 sqft) | 3,000,000,000 VND | 3,150,000,000 VND | 3,210,000,000 VND | 3,300,000,000 VND |
Everything you need to know is included in our Property Pack for Vietnam
If real estate prices go up in Vietnam, which areas are likely to see the biggest increases?
Today, people who want to move to Vietnam are looking for a blend of traditional charm and modern conveniences, which Hoan Kiem District in Hanoi delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and District 1 in Ho Chi Minh City has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Vietnamese market.
Neighborhood | Level of Increase | Why |
---|---|---|
Hoan Kiem District, Hanoi | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
District 1, Ho Chi Minh City | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central locations. |
Tay Ho District, Hanoi | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
Thu Duc City, Ho Chi Minh City | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
Ba Dinh District, Hanoi | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
Binh Thanh District, Ho Chi Minh City | Medium | Investment in local infrastructure, such as the extension of metro lines and renovation of historic areas, is boosting long-term value. |
Hai Ba Trung District, Hanoi | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
Phu Nhuan District, Ho Chi Minh City | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
Cau Giay District, Hanoi | Medium-High | Its proximity to central Hanoi, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
Tan Binh District, Ho Chi Minh City | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
Dong Da District, Hanoi | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
District 3, Ho Chi Minh City | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Vietnam?
In 2025, Vietnam's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in bustling cities like Ho Chi Minh City and Hanoi.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Ho Chi Minh City and Hanoi are seeing increased interest. Proximity to green spaces, schools, and modern amenities is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense urban areas of Vietnam, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Vietnam's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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