The real estate market in Vietnam is experiencing a significant surge in demand, particularly in the first quarter of 2025. Data from Batdongsan.com reveals that compared to February 2025, the demand for real estate searches in Hanoi increased by 27%. Other provinces saw an even more dramatic rise, with a 75% increase recorded, while Ho Chi Minh City noted a 20% uptick.
In the early weeks of March 2025, the market for properties for sale in Hanoi and various provinces became notably more active. The land plot segment, in particular, experienced substantial growth, with searches increasing by 50% compared to the previous month. This was in contrast to other property types, which saw more modest gains; townhouses increased by 32%, private houses by 26%, and apartments by 15%.
Furthermore, during the same period, the volume of listings for land plots rose by 34%, making it the second most active segment after private houses, which increased by 37%. A survey conducted by Batdongsan.com.vn in the first quarter of 2025 indicated that 44% of real estate brokers viewed land plot transactions as stable, with fluctuations between -10% to +10%. Meanwhile, 24% reported an increase in transactions ranging from +10% to +50%.
Data from Batdongsan.com.vn also highlighted that the search volume for apartments for sale in March 2025 rose by 13% in both Hanoi and Ho Chi Minh City compared to February. Listings increased by 20% in Hanoi and 30% in Ho Chi Minh City. The average price of apartments reached 63 million VND per square meter in Hanoi and 59 million VND per square meter in Ho Chi Minh City.
Over the past three years, rental prices for apartments have remained relatively stable, hovering around 13 million VND per unit in both cities. However, the rental yield has been on a decline, dropping from over 4% in the first quarter of 2023 to just 2.8% in the first quarter of 2025.
In Hanoi, the price variation between central and suburban apartment projects is notable. For projects located within 30 to 60 minutes of the city center, prices typically range from 40 to 80 million VND per square meter, with some listings exceeding 100 million VND per square meter. In contrast, projects situated further away, requiring 60 to 90 minutes of travel, generally fall within the price range of 20 to 50 million VND per square meter, with only a few exceeding 60 million VND per square meter.
In Ho Chi Minh City, the price differences between central and suburban apartments are less pronounced, mainly ranging from 30 to 60 million VND per square meter, with a few close to 100 million VND per square meter.
New supply in Hanoi is predominantly in the high-end and luxury segments, with a concentration in suburban districts. Ho Chi Minh City also sees new apartment supply focused in the suburbs, but with a more diverse range of segments available.
As urban populations rise, the pressure on infrastructure in both major cities is becoming increasingly evident. In Hanoi, numerous infrastructure projects are underway to improve connectivity to suburban areas. Many urban area projects of varying scales are set to launch around Hanoi, while infrastructure in Ho Chi Minh City is also improving in its outskirts and suburban regions.
In a related development, the topic of provincial mergers has sparked considerable interest among investors and the public alike. Looking back at the practical implications of mergers, particularly the merger of Hanoi and Ha Tay, it is observed that while real estate prices in the old Ha Tay area saw increases ranging from 2.6 to 15 times, not all locations experienced uniform growth post-merger.
According to data compiled from Google in February 2025, the Northern region and Hanoi recorded the highest search volume for the keyword "Provincial Merger." Binh Duong led the list of provinces, followed by Vinh Phuc, Ninh Binh, Thai Binh, and Bac Ninh.
In March 2025, Batdongsan.com.vn reported a sharp increase in real estate interest across various provinces, particularly in those with similar geographic and demographic characteristics. For instance, Da Nang saw a 39% increase in interest, while Quang Nam experienced a staggering 96% rise.
Provinces with similar geographical advantages, such as Hung Yen and Thai Binh, also recorded positive changes, with increases of 36% and 75%, respectively. Notably, regions that could potentially evolve into "super cities"—encompassing 12.5 million people and featuring seaports, airports, and financial centers—witnessed heightened real estate interest, with Ho Chi Minh City, Binh Duong, and Ba Ria - Vung Tau showing increases of 13%, 49%, and 42%, respectively.
At the Real Estate Market Overview Conference in the first quarter of 2025, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, stated that provincial mergers have been a hot topic since late last year. He noted that while such mergers present opportunities for enhanced public investment in infrastructure and economic policies, they also pose challenges regarding management and the risk of unsustainable land price surges.
Reflecting on the experience of the Hanoi - Ha Tay merger, where real estate prices in the old Ha Tay area surged significantly while many projects faced delays or abandonment, Mr. Nguyen emphasized the need for investors to carefully analyze economic, cultural, and infrastructural factors when evaluating opportunities arising from provincial mergers.
He cautioned against the tendency to speculate on short-term price increases, advising that selective investment based on data analysis and regional compatibility will be crucial to mitigating risks in the evolving real estate landscape.
