Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Everything you need to know before buying real estate is included in our Vietnam Property Pack
Are you considering investing in Vietnam's property market by 2025? Curious about the emerging trends that could shape your investment decisions? Want to know which areas are poised for growth and what factors will drive demand?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Vietnam Property Pack
1) Relaxed property laws for foreigners will boost international investment in Vietnam
The new property ownership laws in Vietnam are making it easier for foreigners to invest in real estate.
Since the 2014 Housing Law, there's been a noticeable uptick in foreign property ownership, with 3,053 foreigners buying homes, mostly apartments. The 2023 Housing Law is expected to boost this trend by allowing foreign entities to own more types of commercial residential properties.
In the first five months of 2024, Vietnam's property sector attracted $1.98 billion in foreign direct investment (FDI), a 70% increase from the previous year. This makes real estate the second-highest recipient of FDI after manufacturing, highlighting the strong interest from international investors.
Surveys show that around 4 million foreigners and overseas Vietnamese are keen on buying houses in Vietnam, indicating a vibrant and promising market. High-end properties are especially popular among international buyers, with many being snapped up by foreigners.
This trend is likely to continue as the new Housing Law 2023 aims to create a secure environment for foreigners to live and work in Vietnam. The influx of foreign investment has also encouraged international real estate agencies to expand their operations in the country.
These agencies are capitalizing on the growing demand for high-end properties and the favorable legal environment, making Vietnam an attractive destination for property investment.
Sources: The Investor, Afrikavantage, Source of Asia
2) Hanoi property prices will rise due to strong demand and limited supply
Hanoi's property prices are on a steady rise, with a moderate increase expected due to consistent demand and limited supply.
In 2024, the city saw a 35% jump in apartment sales from the previous quarter, and a 226% surge compared to 2023. This indicates a growing interest in buying property, especially in the mid- and high-end segments, which accounted for 98% of all transactions.
The supply of new housing is tight, with plans for over 9,300 new units mostly in suburban areas. This scarcity of new developments in central Hanoi makes existing properties more valuable, driving prices up. The construction sector is also slow in launching new projects, further limiting the availability of new homes.
Hanoi's population has grown from 6.8 million in 2011 to 8.4 million in 2022. This steady increase, along with government urbanization goals, means more people are moving to the city for work or education, boosting the demand for housing.
With more people coming in and not enough new homes being built, property prices are naturally climbing. The limited land for development in central areas adds to this pressure, making existing properties even more sought after.
Sources: VietnamNet, Xinhua News, The Investor
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3) Nha Trang rents will stabilize with tourism recovery and steady demand
Coastal cities like Nha Trang are seeing stable rental markets thanks to a tourism boom.
In early 2024, Khanh Hoa province, home to Nha Trang, welcomed over 1.5 million tourists, with a noticeable uptick in international visitors compared to the previous year. This influx has naturally kept the demand for accommodations high, leading to consistent rental prices.
Hotels in the Southern region, including Nha Trang, boasted a 92% occupancy rate, showing that tourists are flocking to these coastal spots. This steady stream of visitors means a constant need for rental properties.
The Vietnamese government is pushing hard to boost tourism, aiming for millions of foreign arrivals by 2025. This long-term strategy, along with infrastructure upgrades, is set to keep rental demand strong in places like Nha Trang, where tourism is a major economic force.
With these efforts, Nha Trang is poised to remain a top choice for tourists, ensuring that rental markets stay robust. The city's appeal as a coastal destination continues to draw visitors, supporting a healthy rental market.
Sources: News Khanh Hoa, Bao Chinh Phu, TMS Consultancy
4) Property prices in the Mekong Delta will rise as infrastructure improves
The Mekong Delta is buzzing with change, especially in infrastructure.
In 2023 and 2024, the government kicked off major expressway projects, aiming for 600 km by 2025 and 1,200 km by 2030. These roads are game-changers, making travel and business easier, which naturally boosts the area's appeal for living and investing.
As these projects wrap up, property prices are feeling the heat. Better infrastructure means more people are keen to buy property, whether for living or investment. In places like Can Tho, this has sparked a noticeable rise in property values as the area becomes more accessible and desirable.
Urban growth is another big player here. By 2030, 45% of the region's population is expected to live in urban areas, driving up the demand for housing. People aren't just looking for any homes; they want quality places in well-connected spots, pushing property prices even higher.
With these developments, the Mekong Delta is becoming a hot spot for real estate. The combination of improved infrastructure and urbanization is creating a perfect storm for rising property values, making it a prime time to consider investing in this region.
Sources: TTC Group, VnExpress, The Investor
5) Ho Chi Minh City residential property prices will stabilize after years of rapid growth
Ho Chi Minh City has experienced rapid growth in residential property prices in recent years.
But don't worry, things are expected to calm down soon. One big reason is the rising supply of new residential projects. Even though there was a shortage of new apartment projects in 2023 and 2024, several developments were either being handed over or set to launch. For instance, the West Gate Park project in Binh Chanh district handed over 2,000 apartments, and PiCity High Park in District 12 sold over 300 apartments. This influx of new homes is likely to balance out the market.
Government policies are also stepping in to cool things down. A new housing law is expected to take effect in 2025, which could impact investor sentiment and slow down price growth. Plus, increased interest rates have made mortgages less affordable, especially in 2024. This has made buyers more cautious about taking on debt, which might lead to a slowdown in price growth.
Foreign investment is another piece of the puzzle. While still strong, there were signs of a slowdown in foreign investment in 2024. For example, the High-end Apartment market recorded only 39 transactions in the fourth quarter of 2023, with a quarterly rate of merely 2.3%. This indicates that the market might be stabilizing.
Reports of unsold inventory also suggest a potential stabilization. In 2023 and 2024, the High-end Apartment market didn't record any new supply in the fourth quarter of 2023, and the total supply in 2023 stood at 4,898 units, down 6.1% over the same period in 2022. This lack of new supply could help balance the market.
So, if you're thinking about buying property in Ho Chi Minh City, it might be a good time to keep an eye on these trends. The market is showing signs of stabilizing, which could mean more opportunities for buyers in the near future.
Sources: Real Estate Asia, The Investor
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6) Rental yields in Da Nang will drop due to rising competition in coastal cities
Coastal cities like Da Nang are buzzing with new property developments.
In 2024, Da Nang's apartment market saw a 2.5-fold increase in primary supply compared to the previous year, with 16 new projects adding around 2,484 apartments. This boom is set to continue, with an expected 2,000 to 3,000 new units hitting the market by the end of the year.
With more apartments available, the rental market is getting competitive. The primary supply in Da Nang and nearby areas jumped by 32% over the same period in 2023, adding nearly 2,300 apartments. This influx often means rental prices might drop, as seen in other bustling regions.
Media reports are buzzing about the rental market saturation in Da Nang, thanks to this surge in supply. Experts predict that the market will correct itself due to oversupply, a typical scenario in fast-growing real estate hubs. This could mean lower rental yields as the market finds its balance.
For potential buyers, this means more choices but also a need to be savvy about rental returns. As the market adjusts, it's crucial to keep an eye on how these changes might affect your investment. The increased competition in Da Nang's rental market is a double-edged sword, offering both opportunities and challenges.
Sources: Vietnam.vn, Bao Da Nang, Global Property Guide
7) New government policies will boost affordable housing development in cities
The Vietnamese government is making big moves to boost affordable housing in urban areas.
They've approved a plan to build one million social housing units by 2030, with a hefty budget of VND849 trillion (US$36.2 billion) coming from both private and public sectors. This shows just how serious they are about tackling housing issues.
New laws are also in place to back this up. The Ministry of Construction is rolling out the 2023 Housing Law and the 2023 Real Estate Business Law, which aim to cut land costs for developers. This makes it easier for them to build affordable homes, creating a more welcoming environment for housing projects.
Developers are getting some sweet incentives too. Cities must now set aside land for social housing and worker accommodation in urban and rural developments, as well as industrial parks. This policy is designed to draw in investors and ensure there's enough land for these much-needed projects.
Public-private partnerships are a big deal here. Take Long An province, for example, which is looking for major private sector funding for a large urban housing project. This includes a mix of apartments, villas, townhouses, and social accommodation units, showing how teamwork can help meet housing needs.
Sources: Vietnam News, Hanoi Times, Yoginfra
8) Gated communities are increasingly sought after for their safety and amenities
In 2023 and 2024, crime rates in urban areas like Hanoi and Ho Chi Minh City have risen noticeably.
With crime indices of 36.0 in Hanoi and 51.9 in Ho Chi Minh City, these cities are seeing more people worried about safety, pushing them to look for safer living environments.
Gated communities are gaining popularity because they offer the security that people crave. Real estate reports show a growing interest in properties that are not only secure but also come with attractive amenities.
The Vietnamese government is focusing on urban planning and infrastructure, aiming to create safer and more organized living spaces. This aligns with the trend of people seeking out gated communities.
Consumer surveys reveal that buyers often prioritize safety and amenities when choosing properties. In Hanoi, a large portion of the apartment stock is in well-developed districts, showing a preference for secure areas.
The media frequently highlights the benefits of living in gated communities, such as enhanced security and access to amenities like parks and gyms, making them even more appealing.
Sources: Numbeo, KPMG Vietnam 2024 Outlook, Global Property Guide
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9) Aging population boosts demand for retirement-friendly housing in cities and suburbs
Vietnam's population is aging rapidly, with life expectancy reaching 74.5 years in 2023.
By 2050, 21% of the population will be 60 or older, which means a lot more people will need homes that suit their changing needs. Many seniors prefer urban and suburban areas because they offer easy access to healthcare and social amenities.
There's a noticeable shift in what seniors are looking for in housing. They want more than just a place to live; they want retirement-friendly options with services like daytime care and community activities. This is pushing the demand for retirement communities and senior living facilities.
Developers are catching on to this trend, recognizing the opportunity to create spaces that cater specifically to the elderly. The focus is on building environments that promote social interaction and provide necessary healthcare services.
In urban areas, the demand is particularly high because of the convenience and lifestyle they offer. Seniors are drawn to places where they can maintain an active social life and have quick access to medical facilities.
As the population continues to age, the real estate market is adapting to meet these new demands. The trend is clear: more retirement-friendly housing options are needed to accommodate the growing number of elderly residents.
Sources: Vietnam Government Portal, VietnamPlus, VietnamNet
10) Eco-friendly properties will become popular as Vietnamese consumers grow more environmentally aware
In Vietnam, eco-friendly properties are gaining traction as more people become environmentally conscious.
By 2023 and 2024, the country saw a boom in green buildings, with over 400 certified structures covering about 10 million square meters. This surge surpassed the national energy efficiency program's goals, highlighting a shift towards sustainable construction. Imagine living in a home that not only saves energy but also contributes to a healthier planet.
Consumer choices are driving this change. A survey showed that 91% of Vietnamese people are aware of and engaged in a conscious lifestyle. Even more telling, 84% are willing to spend extra on products that fit this lifestyle. This means there's a strong appetite for homes that offer sustainable living options, making eco-friendly properties a hot commodity.
The government is also on board, pushing for greener living. They've rolled out green building codes and energy-efficient regulations, aiming to cut greenhouse gas emissions significantly by 2030. This has nudged developers to focus on eco-friendly projects, perfectly aligning with what consumers want.
For those considering buying property in Vietnam, this trend is worth noting. Eco-friendly homes not only promise lower utility bills but also a chance to be part of a growing movement towards sustainability. It's a win-win for both your wallet and the environment.
Sources: VietnamPlus, McKinsey, Trade.gov
11) Investors will keep flocking to Phu Quoc Island for luxury and resort-style properties
Phu Quoc Island is quickly becoming a top choice for investors eyeing luxury and resort-style properties.
In 2024, the island saw a 56% jump in international visitors, welcoming over 720,000 tourists. This boom is largely due to new international flights, making Phu Quoc more accessible and attractive to travelers seeking a tropical getaway.
Foreign direct investment in Vietnam's real estate sector is also on the rise, with a staggering 89.1% increase in 2024, reaching about $5.63 billion. This surge reflects Vietnam's appealing investment climate, which is drawing in foreign investors eager to capitalize on the country's growth.
The Vietnamese government is sweetening the deal by promoting Phu Quoc as a special economic zone. They're offering tax breaks and other incentives to lure more investment, making it an even more enticing prospect for those looking to invest in luxury real estate.
Phu Quoc's reputation as a travel destination is growing, with high occupancy rates in its luxury accommodations. The island's natural beauty and upscale offerings are frequently highlighted in the media, attracting tourists who dream of a tropical paradise.
Sources: Vietnam News, ANT Lawyers, Lao Times, Vietnam Plus
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12) Buyers will prefer spacious homes over high-rise apartments post-pandemic
In Vietnam, the real estate market is shifting towards more spacious living options as people move away from high-rise apartments.
Many are now eyeing suburban and rural properties, driven by a desire for less crowded environments. For example, Hanoi is transforming its suburbs into livable rural areas by 2025, showing a clear preference for more open spaces. This trend is particularly noticeable in resort regions like Nha Trang and Phu Quoc, where larger homes and villas are in demand.
These areas offer luxury sea view complexes with exclusive services, making them attractive for both living and renting. In city centers like Hanoi, apartment prices have soared above $2,000 per square meter, pushing locals to seek more affordable and spacious options elsewhere. This shift is not just about cost but also about lifestyle preferences.
People are increasingly drawn to living environments that offer more personal space and amenities. Residential complexes such as Sunshine City in Hanoi, which provide green spaces and parks, are gaining popularity. This aligns with government policies promoting urban decentralization, aiming to create more livable rural areas and reduce urban density.
Real estate agents and market analyses highlight that buyers are prioritizing spacious and comfortable living options. Social media buzz also underscores the desire for more personal space and privacy, often associated with larger homes in less densely populated areas. This shift is a response to the high costs and limited space of city apartments.
As a result, high-rise apartments are losing some appeal, with buyers seeking alternatives that offer more room and a better quality of life. This trend is reshaping the real estate landscape in Vietnam, as people look for homes that meet their evolving needs and preferences.
Sources: Hanoi Times, Vietnam Real Estate, Vietnam News
13) Foreign buyers will flock to Vietnam's luxury real estate in Ho Chi Minh City and Hanoi
Foreign buyers are increasingly drawn to Vietnam's luxury real estate market, especially in Ho Chi Minh City and Hanoi.
One big reason is the surge in Foreign Direct Investment (FDI). In 2023, FDI hit $36.6 billion, a jump of 32.1% from the previous year. By 2024, the property sector alone saw nearly $1.98 billion in the first five months, marking a 70% increase year-on-year. This influx of investment shows a strong belief in Vietnam's economic future and its real estate potential.
The growing expatriate community in these cities is also boosting demand for luxury homes. They want high-quality living spaces that meet international standards, making Vietnam a hot spot for foreign buyers. The Vietnamese government has made it easier for foreigners to own property by simplifying processes and improving transparency. Changes to the Housing Law in 2024 have further opened the doors for foreign investors.
Vietnam's luxury real estate is more affordable compared to other Asian markets, making it a tempting choice for foreign buyers. With strong economic growth and urbanization, Ho Chi Minh City and Hanoi are prime spots for luxury developments. The presence of international schools and amenities tailored for expatriates adds to the appeal of these cities.
Foreign buyers are also attracted by the vibrant lifestyle and cultural richness of Vietnam. The country's unique blend of tradition and modernity offers a distinctive living experience. This cultural allure, combined with economic opportunities, makes Vietnam a compelling destination for luxury real estate investment.
Moreover, the strategic location of Vietnam in Southeast Asia provides easy access to other major Asian markets. This geographical advantage, along with a stable political environment, enhances the attractiveness of investing in Vietnam's luxury real estate sector.
Sources: Asia Property Awards, KPMG, Mordor Intelligence, CTOL Digital
14) Nha Trang property interest will surge due to its tourist appeal and better infrastructure
Nha Trang is quickly becoming a top tourist destination, with over 2.4 million visitors in 2023.
This surge, a 60% increase from pre-pandemic times, highlights the city's growing allure. The government has been busy upgrading infrastructure, which is a big reason why both tourists and investors are flocking here. They've poured resources into improving roads and expanding airports, making it much easier to get around and invest.
With more international flights, Nha Trang is now connected to places like Central Asia, India, and Australia. This boost in accessibility makes it even more appealing for tourists and property investors alike.
Imagine the convenience of hopping on a direct flight from Australia to Nha Trang. This kind of connectivity is a game-changer, opening up new markets and opportunities. It's no wonder that property interest is on the rise here.
Investors are taking note of these developments, seeing Nha Trang as a promising spot for real estate. The city's enhanced infrastructure and increased tourist numbers are key factors driving this interest.
With all these improvements, Nha Trang is not just a vacation spot but a smart investment choice. The combination of tourist appeal and infrastructure upgrades makes it a hotbed for property investment.
Sources: Vietnam News, Vietnam Plus, Vietnam Real Estate
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15) Hanoi's suburbs will boom as infrastructure projects enhance city center connectivity
Hanoi is buzzing with massive infrastructure investments that are reshaping its landscape.
By 2023, projects like the Vinh Tuy Bridge Phase 2 and the elevated road along Ring Road No.2 have boosted connectivity between the suburbs and the city center. The ongoing Thang Long Highway project, started in late 2023, promises to make access even smoother once it's done.
Hanoi's government is actively seeking investments for urban development in suburban districts such as Dong Anh. These projects, valued at 34 trillion VND (1.3 billion USD), include infrastructure, transport, shopping centers, and parks, aiming to make these areas more appealing and livable.
Real estate prices in Hanoi's suburbs are climbing, showing a growing demand for these areas. Despite the rise, apartment prices here remain lower than in Ho Chi Minh City, making them a smart choice for those seeking affordable housing options.
Investors are flocking back to Hanoi's real estate market, especially eyeing low-rise suburban properties. This trend underscores the increasing attractiveness of suburban investments as infrastructure projects enhance connectivity.
With these developments, Hanoi's suburban areas are set to become even more desirable as infrastructure projects continue to improve access to the city center.
Sources: Hanoi Times, Truong Son Land, Vietnam Plus
16) The Mekong Delta will attract buyers with affordable housing as urban areas grow too expensive
Living costs in Vietnam's big cities are climbing fast, making it tough for many to afford housing.
In 2023, Hanoi saw apartment prices jump over 16%, while in Ho Chi Minh City, they rose by more than 10%. This has pushed many low-income residents to seek cheaper alternatives. The Mekong Delta is catching their eye, thanks to its more affordable housing options.
The government is focusing on the Mekong Delta, investing in infrastructure to support affordable housing. In provinces like Sóc Trăng, plans are underway to build thousands of affordable homes by 2030. This is part of a broader initiative to create 1 million social housing units for low-income earners and industrial park workers.
With urban areas becoming pricier, the Mekong Delta's appeal is growing. The region offers not just affordable housing but also a slower pace of life, which is attractive to many. Government efforts are making it a viable option for those priced out of the cities.
Insider knowledge suggests that the Mekong Delta's housing market is set to boom. As more people move there, the demand for affordable housing is expected to rise, making it a hotspot for future development.
For potential buyers, the Mekong Delta offers a chance to own property without breaking the bank. With ongoing infrastructure improvements, the region is becoming increasingly accessible and attractive for those looking to escape the high costs of city living.
Sources: Vietnam News, Global Property Guide, Vietnam.vn
17) Binh Duong's rise as an industrial hub will boost demand for residential properties
Binh Duong province is experiencing a population surge, with numbers expected to jump from 2.4 million in 2019 to over 3.1 million by 2024.
This growth is largely due to Binh Duong's transformation into a major industrial hub, boasting more than 4,200 projects and a staggering US$40 billion in registered capital. As industries flourish, the demand for housing rises, with workers and professionals eager to live near their jobs.
The government is also investing heavily in infrastructure, including the ambitious 1,000-hectare smart city project, Binh Duong New City. This development is expected to draw in nearly one million middle-class residents and international experts, further boosting the need for residential properties.
With these changes, Binh Duong is becoming a prime destination for homebuyers looking to capitalize on the province's economic boom. The influx of new residents is driving up demand for housing, making it an attractive market for property investors.
As Binh Duong continues to grow, the real estate market is poised for significant expansion, offering opportunities for those looking to invest in a thriving area. The combination of industrial growth and infrastructure development is creating a dynamic environment for property buyers.
For anyone considering purchasing property in Binh Duong, now is the time to act, as the province's transformation into an economic powerhouse is reshaping the real estate landscape.
Sources: VietNam News, World Population Review, VietNam News
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18) Smart home technology is a crucial selling point for new residential developments in Vietnam
Smart home technology is becoming a major attraction for new homes in Vietnam.
In Vietnam, over 179.3 million homes now feature smart devices, reflecting a 15.4% rise since 2021. This surge indicates a growing trend where people are increasingly integrating smart technology into their daily lives, making it a must-have for new home buyers.
The younger crowd, especially tech-savvy professionals, are driving this change. They are more inclined towards homes that offer advanced smart features, which is boosting the demand for tech-equipped properties. This shift is particularly noticeable in urban areas where young professionals are settling.
Real estate developers are catching on by teaming up with tech companies. These partnerships are crucial as they ensure new homes come with the latest smart technologies, making them more attractive to potential buyers. This collaboration is a game-changer in the property market.
Smart home features are not just about convenience; they also offer enhanced security and energy efficiency. Buyers are increasingly looking for homes that can provide these benefits, making smart technology a key selling point.
Sources: FPT Digital, InnoLab Asia, Exploding Topics
19) Investors will flock to Da Nang as it rises as a tech hub
Da Nang is quickly becoming a hotspot for tech investors, thanks to its growing reputation as a tech hub.
In 2022, the city experienced a 32.2% increase in tech company registrations, and the registered capital surged by 37.5% compared to 2021. This momentum carried into 2024, with the Da Nang Hi-tech Park attracting 30 projects, including 13 foreign direct investment (FDI) projects worth a whopping US$726.7 million.
The government is playing a big role in this boom, pushing Da Nang as a center for innovation and high-tech development. The Politburo has set its sights on making Da Nang a hub for innovation, entrepreneurship, and high-tech, with a special focus on training top-notch talent in semiconductors and AI.
Infrastructure is another key factor. Da Nang has invested heavily in international fiber optic networks, electricity, and transport infrastructure, which are crucial for tech industries like semiconductors and AI. The city is also home to tech parks and innovation centers, such as the Da Nang Hi-tech Park, which solidifies its position in the tech world.
Local startups and innovation projects are getting a boost from significant financial support, making Da Nang an attractive place for budding entrepreneurs. This support is part of a broader strategy to nurture high-quality human resources in cutting-edge fields.
With all these elements in play, it's no wonder Da Nang is catching the eye of investors looking for the next big thing in tech.
Sources: Baodanang.vn, Cyberaspa.org, OpenGov Asia
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.