The Vietnamese real estate market is witnessing notable shifts as the first quarter of 2025 unfolds, revealing a complex picture of stability and growth across various segments. According to Batdongsan.com.vn, there has been stable growth in selling prices, although a slight decrease in search demand was observed from late 2024 to early 2025.
In particular, the demand for land plots and apartments has surged, as indicated by significant increases in search volumes. In March 2025, searches for apartments in both Hanoi and Ho Chi Minh City rose by 13% compared to February 2025. The number of listings also saw a considerable uptick, with a 20% increase in Hanoi and a 30% rise in Ho Chi Minh City.
The average selling price for apartments has reached 63 million VND per square meter in Hanoi and 59 million VND per square meter in Ho Chi Minh City. Despite the rising prices, rental rates have remained relatively stable at around 13 million VND per unit for the past three years. However, the return on apartment rentals has been declining, dropping from over 4% in the first quarter of 2023 to just 2.8% in the first quarter of 2025.
In Hanoi, the price dynamics reveal a stark contrast between the city center and the suburbs. For projects located 30 to 60 minutes from the city center, prices range from 40 to 80 million VND per square meter, with some projects reaching as high as 100 million VND per square meter. Conversely, for properties situated 60 to 90 minutes away, prices can dip below 20 million VND per square meter, although a few exceed 60 million VND.
In Ho Chi Minh City, the price differences between central and suburban apartments are less pronounced, primarily ranging from 30 to 60 million VND per square meter, with a few exceptional cases nearing 100 million VND.
The supply of new apartments in Hanoi is predominantly focused on high-end and luxury segments, primarily located in suburban districts. In contrast, Ho Chi Minh City has a more diverse range of new apartment offerings, also concentrated in the suburbs. The increasing population density in the central districts of both cities is exerting pressure on city centers, prompting infrastructure developments aimed at improving connectivity to outer areas.
In March 2025, the search volume for land plots showed remarkable growth, with Hanoi experiencing a 52% increase, Ho Chi Minh City a 31% rise, and other provinces a 54% surge compared to February 2025. The average selling price of land plots in Hanoi rose by 42%, while Ho Chi Minh City saw a more modest 7% increase. Other provinces reported even higher growth, with prices surging by 67% in March 2025 compared to January 2023.
Notably, the Northern provinces are leading the charge in land plot price growth. In comparison to the first quarter of 2023, prices in Hung Yen increased by 55%, Bac Ninh by 46%, Hanoi by 42%, and Hai Phong by 21%. In the Southern provinces, price increases were more subdued, with Dong Nai rising by 30%, Binh Duong by 25%, and Ho Chi Minh City by just 5%.
Mr. Đinh Minh Tuấn, the Southern Regional Director of Batdongsan.com.vn, noted that consumer interest in land plots varies significantly between regions. Consumers in Hanoi are particularly focused on land plots in suburban areas, while those in Ho Chi Minh City prefer plots closer to the city center. The Northern provinces have shown remarkable growth in interest, particularly in the context of provincial mergers, with the highest search volumes recorded in Bình Dương, Vĩnh Phúc, Ninh Bình, Thái Bình, and Bắc Ninh.
The fluctuations in land prices are particularly striking in Hai Duong, where prices surged by 100% compared to January 2023. Other provinces, such as Bắc Giang and Hưng Yên, also saw significant increases of 80% and 75%, respectively.
In the Central region, Quảng Nam has reported a notable rise in interest in coastal areas adjacent to Đà Nẵng, with land plot prices also experiencing growth. For instance, in March 2025, prices in Cẩm Lệ district increased by 80%, Lien Chiểu by 75%, and Hòa Vang by 50% compared to January 2023.
As for the apartment segment, reports indicate that the price growth has slowed down, marking the lowest quarterly increase in two years. The primary selling price of apartments has stabilized at around 75 million VND per square meter, reflecting a slight increase from the previous quarter. This slowdown in growth is attributed to high prices that exceed the average purchasing power, which has affected many potential buyers.
In the secondary market, the transfer price for apartments has also seen a slowdown, reaching approximately 50 million VND per square meter, up only 3% from the previous quarter. Most project prices remained stable, with significant changes only observed in a few prime locations within central districts that offer strong rental potential.
After eight consecutive quarters of growth, the primary apartment market in Hanoi has officially entered a period of adjustment in early 2025, with a noticeable drop in both supply and consumption. The primary supply has only reached about 4,000 units, while consumption has fallen to 3,000 units, a staggering 60-70% decrease compared to the 11,000-12,000 units sold in the fourth quarter of 2024.
Experts suggest that the current dynamics in the real estate market reflect a combination of high demand, limited supply, and changing regulations. With the new Land Law adjustments, including an annual update of land price frameworks, prices are expected to continue rising, further impacting both primary and secondary markets. As Mr. Lê Bảo Long, Strategy and Marketing Director at PropertyGuru Vietnam, pointed out, the population density in Hanoi is eight times higher than the national average, and this imbalance between supply and demand is likely to keep pushing prices upward.
