The Vietnamese real estate market has shown promising signs in the first quarter of 2025, with various segments, particularly land plots, experiencing significant growth. According to a report from PropertyGuru Vietnam, the land plot segment has garnered substantial interest and has demonstrated strong performance during this period.
In the Northern provinces, land plot prices have seen remarkable increases. Specifically, compared to the first quarter of 2023, selling prices for land plots in Hung Yen surged by 55%, Bac Ninh by 46%, Hanoi by 42%, and Hai Phong by 21%. Meanwhile, the Southern provinces experienced milder price fluctuations, with Dong Nai increasing by 30%, Binh Duong by 25%, and Ho Chi Minh City by a modest 5%.
The interest in land plots has also spiked, with search volumes rising dramatically. In March 2025, searches for land plots in Hanoi increased by 52%, in Ho Chi Minh City by 31%, and in other provinces by 54% compared to February 2025. This surge in interest reflects a growing demand for land plots across the country.
Dinh Minh Tuan, the Southern Regional Director of PropertyGuru Vietnam, noted that the North-South differentiation in the land plot market remains evident, with the North exhibiting a wider and higher price distribution. He stated, "With the news of provincial mergers, the response in areas with differentiation is most pronounced in the Northern provinces. Leading the way is Binh Duong, followed by Vinh Phuc, Ninh Binh, Thai Binh, and Bac Ninh." In contrast, in the South, only districts close to Ho Chi Minh City are experiencing strong growth in land plot searches, though selling prices in those areas have not seen significant fluctuations.
In March 2025, Hai Duong province experienced the most dramatic price fluctuations, with land plot prices doubling compared to January 2023. Other provinces also recorded notable growth, including Bac Giang at 80% and Hung Yen at 75%. In the Central region, Quang Nam saw a strong increase in interest for coastal areas adjacent to Da Nang, and land prices in Da Nang also rose significantly. For instance, in March 2025, land plot prices in Cam Le district increased by 80%, in Lien Chieu by 75%, and in Hoa Vang by 50% compared to January 2023.
Le Bao Long, the Strategy and Marketing Director of PropertyGuru Vietnam, emphasized that Hanoi remains a market with very strong fundamental factors. According to the General Statistics Office, Hanoi's population density in 2023 was eight times higher than the national average and has been continuously rising over the past five years. With limited land funds, this situation inevitably drives prices higher as demand outstrips supply.
Long pointed out that real estate prices are unlikely to decrease, particularly in Hanoi. He explained that the recent changes to the Land Law, which included modifications to the land price framework, have replaced the previous five-year update with an annual update of the land price list. This adjustment means that input land prices will gradually rise. He stated, "When the land price list is updated annually and aligns more closely with market prices, it will lead to a situation where primary property prices increase, and secondary prices in surrounding areas will also rise."
The implications of these changes are already visible in Hanoi, where the average price has increased from two to six times compared to the previous land price list by 2025. Long stressed, "This is something we must accept; when the land price list is updated annually, prices will either remain stable or increase, making it unlikely for them to decrease. There are numerous reasons for prices to rise and very few for them to fall."
Batdongsan.com.vn corroborates that the land plot segment experienced the strongest growth in both interest and listing volume. In March 2025, while other segments saw only slight increases in search interest (street-front houses up 32%, private houses up 26%, and apartments up 15%), land plots recorded a remarkable 50% growth compared to February 2025. The volume of listings for land plots also grew by 34%, second only to private houses, which saw a 37% increase.
The data indicates that consumers in Hanoi are increasingly interested in suburban land plots, while those in Ho Chi Minh City are focusing more on land plots closer to the city center. The overall trend shows that land plots in the Northern provinces are commanding higher asking prices, with significant increases noted in March 2025.
In summary, the first quarter of 2025 has seen a robust performance in the real estate market, especially in the land plot segment. The combination of rising prices, increasing interest, and changing regulations appears to set the stage for continued growth in this sector. Investors and consumers alike are keenly watching these developments as they navigate the evolving landscape of Vietnam's real estate market.
