The Vietnamese real estate market is undergoing a remarkable transformation as 2025 unfolds, with both buyers and investors shifting their priorities and strategies in response to new realities. Recent surveys and data from Batdongsan.com.vn, one of the country’s most prominent real estate platforms, reveal a market that is stabilizing after several years of volatility, with a pronounced emphasis on sustainable living, legal transparency, and long-term value over quick profits.
According to a comprehensive survey published on August 3, 2025, by Batdongsan.com.vn, market sentiment is showing signs of steadiness, with actual demand for housing now making up a larger share of transactions. The numbers are telling: 64% of buyers are currently seeking homes for residence, while only 36% are motivated by investment opportunities. This is a significant shift from previous years when speculative buying and the promise of rapid returns often dominated the landscape.
What’s driving this change? The survey points to a growing focus on legal compliance, quality of life, and green environments. Buyers are no longer content to simply chase the lowest prices or the highest potential profits. Instead, they’re weighing factors such as internal and external amenities, legal clarity, construction standards, and the sustainability of the living environment. In fact, 64% of survey respondents said green spaces, sustainable design, flood resistance, and green building certifications are now key considerations in their decision-making process. Only 5% admitted to being indifferent to these environmental criteria—a clear sign that the market’s priorities are evolving.
Young families are at the forefront of this shift. Not only do they demonstrate clear financial autonomy, but they’re also showing a willingness to borrow in order to secure the right property. The survey found that 66% of buyers are ready or very ready to take out loans, typically in the range of 30-70% of the property’s value. This readiness to borrow, coupled with a preference for legal transparency and convenience, is reshaping the types of properties in demand. Over the next 12 months, interest is split evenly between condominiums and private houses (each at 31%), followed by land plots (19%), street houses (12%), and villas (11%).
But it’s not all smooth sailing. Despite the positive trends, the market continues to face significant challenges. Access to suitable loans remains a hurdle for many, with complex purchase and lending procedures, lack of transparency, and the inconvenient location of many projects—often far from city centers—posing obstacles to would-be buyers. Social housing policies, which are intended as a lifeline for middle-income groups, have also come under scrutiny. According to the Batdongsan.com.vn survey, 52% of respondents find it difficult to access these policies, and only 31% believe the current measures are reasonable. The main complaints? Complicated procedures, opaque information, and projects located far from urban amenities.
These issues are echoed by industry insiders. As reported by Batdongsan.com.vn, the market is in a phase of “state transition,” with buyers becoming more discerning and cautious. This is reflected in the sharp decline in interest in land plots during the second quarter of 2025, compared to the first. Searches for land plots in Hanoi dropped by 47%, in Ho Chi Minh City by 28%, and in other regions by 33%. The number of land plot listings in these economic hubs has also fallen dramatically, signaling a rapid cooling of what was once the hottest segment of the market.
The causes are multifaceted. Experts point to a combination of rising holding costs, low liquidity, and increased policy risks, including new regulations on personal income tax for real estate transactions and recent amendments to the Land Law and Housing Law. These changes are disrupting the strategies of short-term investors and prompting a re-evaluation of risk and reward. As one seasoned investor, Mr. Đỗ Quang Tuấn, candidly shared, "We were too confident in the potential for price increases and didn’t anticipate the risks. Now, I only invest in real estate that can generate rental income or be used immediately." His experience is far from unique; many individual investors are rethinking their approach, moving away from speculative land purchases in outlying areas and toward more stable investments in apartments or commercial properties with reliable income streams.
This trend is also visible in the performance of different market segments. While land plots are losing their luster, condominiums are on the rise. In Hanoi, the average price per square meter for condos has surged to 70 million VND—up from 38 million VND in 2023 and even surpassing prices in the newly merged Ho Chi Minh City, where the average stands at 57 million VND per square meter. This divergence highlights a clear market polarization, with apartments emerging as a safe haven for both investors and end-users.
Industry leaders see these developments as a healthy sign. Mr. Nguyễn Quốc Anh, Deputy General Director of Batdongsan.com.vn, observed, "Short-term investment sentiment is clearly weakening. This is a positive signal, indicating that the market is developing in a healthier direction." Similarly, Mr. Phan Công Chánh, CEO of Phú Vinh Group, noted that the market is entering a phase of "redefinition," where investors must "slow down to go further." He emphasized that the era of quick profits from speculative flipping is over, and that a more methodical, long-term approach—grounded in market research, legal knowledge, and financial discipline—is now essential.
Looking ahead, most buyers remain cautiously optimistic. The survey found that 53% of respondents expect real estate prices to rise, 37% anticipate stability, and only 10% fear a decline. Key drivers for potential price increases include improvements in transportation infrastructure, new regional planning, increased investment flows, and rising housing demand—especially in areas affected by administrative boundary changes. Notably, the willingness to invest in newly merged areas is strong, with 39% of Hanoi respondents and 35% of those in Ho Chi Minh City expressing readiness, and other regions showing similar enthusiasm.
For the market to maintain its momentum and achieve sustainable growth, continued support from financial institutions and prudent fiscal-monetary policies will be critical. If banks can keep interest rates reasonable and provide meaningful loan support, the stage is set for a more balanced, transparent, and resilient real estate sector—one that rewards patience, planning, and a genuine commitment to quality of life.
Vietnam’s real estate market, once a playground for speculative risk-takers, is maturing into a space where thoughtful investment and sustainable development take precedence. Those willing to adapt and play the long game are likely to reap the rewards as the industry enters this new era.
