The Vietnamese real estate market is witnessing notable trends as 2024 draws to a close, particularly with shifting demands and rising prices affecting investor decisions. Recent data indicate significant disparities between the capital city of Hanoi and the southern hub of Ho Chi Minh City, especially for properties priced between 5 to 10 billion VND.
According to Batdongsan.com.vn, demand for real estate priced within this range is nearly double in Ho Chi Minh City compared to Hanoi as of November 2024. Buyers are increasingly focused on homes costing around 2 to 3 billion VND per unit in Hanoi versus 3 to 5 billion VND per unit in Ho Chi Minh City, though demand for products over 5 billion VND is markedly higher in the south.
Price trends reflect this growing interest, with property costs adjusting due to adjustments made to the Vietnam Land Law, which commenced on August 1, 2024. The new law significantly alters property valuation methodologies across regions by phasing out old pricing frameworks.
The new land price brackets have led to heightened overall real estate prices, with urban locations seeing valuations soar between 2 to 6 times the previous standards. Reports indicate prices for residential land within high-traffic areas of Ho Chi Minh City have topped 687 million VND per square meter, up from 162 million VND previously, representing about a 21% increase.
With these changes, investor sentiment appears to be shifting; there’s been increased activity among prospective buyers seeking properties approved before the new pricing models were implemented. For example, Trinh Huong, a veteran investor from Hanoi, observed many new projects now list at about 30% higher than older developments within the same vicinity. 'With land cost increases assured by the new land pricing tables', Huong expects more price hikes to occur among low-rise establishments.
Areas surrounding Ho Chi Minh City are drawing attention from northern investors seeking reasonable pricing amid soaring costs. Recent CBRE statistics indicate the price of land linked to properties reached 235 million VND per square meter as of Q3 2024, demonstrating 16% growth from the previous quarter and 27% from last year. Concurrently, secondary property values have also swelled to 167 million VND per square meter.
Investors are not only driven by pricing but also by lucrative policies, such as those introduced during year-end promotional campaigns. These strategies aim to revitalize market engagement and present opportunities for profitably investing before prices increase even more.
Among property options, Cát Tường J-Home, located near Binh Duong's industrial zones, stands out as one of the highlighted projects entailing promising returns. The development is strategically located, featuring layouts inspired by Japanese architecture alongside comprehensive amenities. Such positions bolster its appeal to seasoned investors aiming for sustainable income features.
Noteworthy is the distinct behavioral patterns observed for buyers targeting rental markets, finding rental properties within established market frameworks more appealing. Searches for apartments, rentals or room shares are experiencing equivalence across both cities, with prime regions such as Nam Tu Liem and Cau Giay becoming high-demand areas for purchases and rentals respectively.
Indeed, the final months of 2024 mark substantial shifts within Vietnam's real estate sector. Investors are migrating south from the northern markets, encouraged by favorable pricing models and engaged supply dynamics. The year has unfurled opportunities due to various policy adjustments, and as 2025 nears, market analysts predict the demand for private houses and street homes will continue to dominate purchasing behaviors.
Given the comprehensive changes now influencing pricing behaviors, there’s palpable optimism from stakeholders observing improvements driven through consistent market evaluations. The anticipated real estate return cycles are being closely monitored, with expectations for stabilization across varied housing sectors becoming more optimistic, particularly across districts gaining infrastructural attention.
Overall, the convergence of rising prices, shifting demands, and strategic investments presents unique opportunities as Vietnam's real estate market evolves.
