The Vietnamese real estate market is undergoing significant changes as wealthy investors from the North look to Ho Chi Minh City (HCMC) for new opportunities. Recent trends indicate soaring property prices in Hanoi, particularly within multiple segments, forcing local investors to shift their focus southward.
By early 2025, HCMC is becoming the new hotspot for affluent stakeholders from Hanoi, according to Khánh Thiện, a real estate broker working with various Northern investors. Thiện, who transitioned to selling land plots in the eastern parts of HCMC since 2020, emphasizes the increasing appeal of these properties, particularly areas like Phú Hữu and Phước Long. He notes, “The customer believes the eastern land plot sector is tied to infrastructure investment and economic growth potential will drive prices upwards.” This shift marks a notable departure from the past when most Northern investors predominantly engaged with vacation properties along coastal areas such as Nha Trang and Đà Nẵng.
Investors’ motivations are clear: as land prices surge by 40-50% compared to similar plots in HCMC, their interest wanes. With the steady rise of real estate prices, investors conclude the growth potential is more promising in the south than within Hanoi. Thiện adds, “After our successful transaction last September, I ramped up our outreach to Northern customers. Consequently, by the end of 2024, I hosted six additional clients from the North.”
This phenomenon isn't unique to Thiện. Mạnh Đức, another broker specializing in HCMC’s apartment sector, confirms the influx of Northern clients, which accounted for about 20% of his clientele during the latter half of 2024. He explains, “Interest from investors has moved southward, attracted by HCMC’s bigger growth potential and lower entry prices for apartments.” With property prices soaring in Hanoi, HCMC is seen as the last bastion for affordable investment opportunities.
According to experts like Nguyễn Quốc Anh, Vice President of Batdongsan.com.vn, the difference between the markets is stark. He points out, “Unlike the property market trends of the overly heated Hanoi area, HCMC is showing stable developments,” as the demand for HCMC apartments has risen by 16% since the beginning of the year.
This growing trend is not confined solely to City investment. Regional markets surrounding HCMC such as Bình Dương, Long An, and Đồng Nai are also witnessing heightened interest from Northern investors, drawn by attractive pricing and the potential for growth. Indeed, the general consensus is the Southern regions are ripe with opportunities compared to the stagnation perceived within Northern markets.
While the property market shifts southward, another significant trend is brewing: green exports are becoming pivotal to Vietnam’s economic future. Nguyễn Hồng Diên, the Minister of Industry and Trade, emphasizes this necessity, stating, “The movement to green export isn’t just future-oriented; it's now mandatory for Vietnamese enterprises.” The world is increasingly seeking sustainable products, and Vietnam's move toward environmentally sustainable agricultural practices is not only beneficial for the economy but also aligns with global standards.
Investment in green technology is key to building the necessary infrastructure to support this shift. Transitioning to more sustainable practices not only boosts Vietnam’s competitive edge but also opens doors to markets with stringent environmental requirements. Minister Diên highlights the tangible benefits of producing eco-friendly goods, which can yield higher prices and improve income for producers.
Nonetheless, the path to widespread adoption is fraught with challenges. Many local firms face hurdles due to limited access to cutting-edge green technologies, which hampers their ability to meet international standards. “Facilitators will need to mitigate these barriers—there's no overnight solution,” Diên cautions, reflecting on the broader economic transition required.
Simultaneously, broader economic shifts within Vietnam support the notion of sustainability. With significant infrastructure projects underway—including expansions to key transportation routes and industrial zones—Vietnam is gearing up for more integrated urban developments. This encompasses the growing desire to form Transit Oriented Development (TOD), which leverages public transit to spur real estate growth.
By 2025, these trends are expected to come to fruition as new models emerge, pushing the boundaries of Vietnam’s real estate and export sectors. With property prices continuously adjusting and the importance of sustainability at the forefront, the groundwork for Vietnam's economic evolution is being laid.
Investors and businesses alike are attuned to these shifts, signifying not just where the smart money is headed, but potentially shaping the future of Vietnam's economic standing on the global stage.