Vietnam's real estate market is undergoing a significant transformation, driven by shifting consumer demands and soaring urban land prices. Particularly among young people, startups, and small businesses, there is a growing appetite for multi-functional properties that go beyond traditional housing or commercial spaces. This trend has given rise to the innovative "Livehouse" model, which promises to address the challenges of affordability, flexibility, and urban living in Vietnam's booming cities.
Recent reports highlight that land prices in central urban areas have surged by 30 to 50 percent over the past two years, making conventional property types like townhouses, shophouses, and officetels increasingly difficult to access for many buyers. These traditional models often come with high costs, limited space, or restrictions on usage, failing to meet the evolving needs of modern consumers who seek integrated living, working, and business environments.
Enter Livehouse—a new generation of real estate designed as a multi-functional complex combining lodging, business, entertainment, and even nighttime economy activities within urban cores. As explained by Mr. Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Department at the Ministry of Construction, Livehouse is not entirely new but rather an evolution of earlier property types like condotels and officetels. What sets it apart is its higher flexibility and alignment with integrated "live-work-play" lifestyles, especially suited to the rhythms of modern urban life.
"Livehouse is a new type of property that fits current trends," Mr. Dung remarked at the seminar "Livehouse - New generation real estate model: Solution to reduce real estate price pressure in urban areas." He acknowledged that while the legal framework for Livehouse is fundamentally in place, further research and regulatory refinement are necessary to ensure smooth and sustainable operation.
Supporting this view, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, pointed out the market's pressing need for innovative property models. "Traditional real estate types are increasingly showing limitations," he said. "Townhouses have high investment values but low exploitation efficiency and are hard to access for individual small investors. Shophouses face restricted business hours and depend heavily on resident density. Officetels are constrained by small sizes and limited uses. Conventional apartments lack flexibility for commercial exploitation." Livehouse, by contrast, offers a solution by integrating multiple functions within a single space, allowing owners to use it as a homestay, small office, café, or entertainment venue while maintaining residential standards.
One of Livehouse's standout features is its fixed-term ownership model, typically ranging from 30 to 50 years. This approach significantly reduces investment costs—often 20 to 40 percent lower than traditional properties—making Livehouse more accessible to young entrepreneurs, small households, and individual investors. According to a survey by Reatimes, this form of ownership is legally recognized and fully protected by the state, offering clarity and security to buyers.
Moreover, Livehouse developments boast practical amenities tailored to mixed-use lifestyles. Wide sidewalks facilitate commercial activities and pedestrian flow, while parking spaces are conveniently located in front of each unit. Separate utility systems for electricity, water, and security cater to business needs, complemented by high-speed internet and enhanced public lighting to support nighttime operations. Green spaces, parks, and water features further enhance urban living quality and add commercial value.
Economic expert Dr. Vo Tri Thanh, Member of the National Financial - Monetary Policy Advisory Council, emphasized that the success of Livehouse depends on genuine demand and a supportive ecosystem. "If the hope is that limited ownership duration will lower prices and expand accessibility, the market must be large enough—enough residents, businesses, and stable tourist flows," he explained. Dr. Thanh advocates for piloting Livehouse projects in localities with suitable infrastructure and service ecosystems before wider rollout, ensuring investment efficiency and minimizing risks.
Legal scholars echo the importance of a robust regulatory environment. Professor Nguyen Quang Tuyen, Head of the Economic Law Department at Hanoi Law University, noted that while the legal foundation exists—citing the 2024 Land Law's provisions on land lease extensions and Decree 102/2024/ND-CP on extension procedures—the framework remains incomplete and unsynchronized. "Clear property ownership rights and protections for developers, investors, and buyers are essential," he stressed. Professor Tuyen called for swift policy development, including investment incentives, functional conversion permissions, tax benefits, and pilot programs in selected areas to avoid hasty, risky expansions.
At the seminar, journalist Pham Nguyen Toan, Vice Chairman of the Vietnam Real Estate Association and Editor-in-Chief of Reatimes, highlighted urbanization pressures as a key driver behind Livehouse's emergence. With urban populations already at 44.3 percent and expected to surpass 50 percent by 2030, demand for affordable, flexible housing and business spaces is intensifying. Livehouse's multi-functionality and transparent legal status make it a promising tool to balance real needs with purchasing power.
National Assembly member and finance expert Professor Hoang Van Cuong added a broader economic perspective. He observed that in many developed countries, strong taxation on property and speculation keeps real estate prices in check, encouraging usage aligned with actual function rather than asset hoarding. Livehouse's fixed-term use rights could similarly temper urban land price inflation and discourage irrational asset accumulation.
Despite these advantages, experts agree that Livehouse's full potential hinges on ongoing policy refinement and market adaptation. Mr. Vuong Duy Dung urged the government to open pilot mechanisms in major cities with real demand and compatible infrastructure, while streamlining administrative procedures and addressing business concerns. "Listening to enterprises and investors is critical to perfecting policies and removing bureaucratic barriers," he said.
The seminar concluded with consensus that Livehouse represents an innovative, modern, and contextually appropriate real estate model for Vietnam. It offers a way to alleviate urban land price pressures by shifting focus from perpetual ownership to optimal utilization. If supported by comprehensive legal frameworks and flexible policies, Livehouse could become a vital component of smart urban ecosystems, serving diverse goals: housing, entrepreneurship, commerce, and sustainable development.
As Vietnam's cities continue to evolve rapidly, the Livehouse model stands out as a practical, forward-looking response to the complex challenges of urban real estate—blending affordability, functionality, and vibrant urban life in a single, adaptable package.
