As 2025 progresses into its second half, Vietnam's real estate market, particularly land plots in the Northern region, is quietly undergoing a significant transformation. This shift is being driven by a confluence of factors including infrastructure upgrades, evolving legal frameworks, and historically low interest rates. Investors are increasingly steering away from speculative, short-term flips and instead focusing on areas with solid legal standing and long-term growth potential.
According to Mr. Duong Van Sy, General Director of An Vuong Land, the land plot market is currently influenced by four major forces: provincial mergers, legal policy reforms, public infrastructure investments, and the ongoing impact of trade tariffs and wars. The trend of merging provinces is reshaping urban centers and triggering migration flows, which in turn boosts demand in re-planned and newly prioritized areas. This demographic and economic shift is altering the supply-demand landscape in fundamental ways.
Legal reforms are playing an equally pivotal role. Since August 2024, three key laws governing land, housing, and real estate business have come into effect, enhancing transparency and streamlining procedures. This improved legal clarity empowers investors to make more informed decisions and reduces the risks associated with opaque markets. Mr. Sy emphasizes that these policy changes will unlock new supply channels and support a more sustainable market recovery.
Infrastructure investment is another critical piece of the puzzle. Nationwide projects such as the Long Thanh Airport, the North-South Expressway, and ring roads around Hanoi and Ho Chi Minh City are accelerating connectivity and fostering development in satellite cities. This infrastructure boom is not only enhancing accessibility but also attracting capital to suburban and peri-urban areas, where land prices remain relatively affordable and growth potential is high.
However, investor sentiment remains cautious due to the shadow cast by trade tensions and tariffs, which have injected uncertainty into global markets. Rather than rushing to buy, many investors are adopting a watchful stance, carefully evaluating opportunities rather than chasing hype. This prudent approach is reflected in the market’s subdued absorption rates despite the improved supply conditions.
Data from Batdongsan.com.vn illustrates the dynamic nature of the market in early 2025. In March, search interest for land plots surged by 52% in Hanoi and 31% in Ho Chi Minh City compared to the previous month, with other regions seeing an even larger increase of 54%. Correspondingly, asking prices climbed sharply in the North—Hung Yen up 55%, Bac Ninh 46%, and Hai Phong 21%. Notably, Hai Duong’s prices doubled, while Bac Giang and Hung Yen saw increases of 80% and 75%, respectively.
In contrast, southern regions like Dong Nai and Binh Duong experienced more moderate price growth, around 25-30%, primarily in areas adjacent to Ho Chi Minh City. Central Vietnam's coastal districts near Da Nang, such as Quang Nam, also saw rising interest, though Hoi An bucked the trend with a 22% price decline. This geographic disparity underscores the nuanced and region-specific nature of Vietnam’s real estate market.
Parallel to these trends, a broader shift is underway as urban populations seek relief from congested city centers. As major roads, expressways, and metro lines are completed, residents and investors alike are moving towards suburban districts with better connectivity and lower living costs. In Hanoi, areas like Hoai Duc, Gia Lam, and Hoa Lac, along with provinces such as Hung Yen, Bac Ninh, and Bac Giang, are becoming hotbeds of activity. Similarly, in the South, Binh Duong, Dong Nai, Ba Ria – Vung Tau, and Long An are emerging as favored destinations for both long-term residence and investment.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn for the Southern region, describes this migration as a "domino effect" triggered by infrastructure, amenities, opportunities, and demand. He highlights how transportation projects like ring roads and metro lines have dramatically improved connectivity, enabling easier commutes and encouraging population shifts. Historical examples include Ho Chi Minh City's Phu My Hung urban area, which only saw significant population inflows after the Nguyen Van Linh Boulevard opened in 1997, and the Thu Thiem Bridge in 2007, which catalyzed rapid development in the city's eastern districts.
Currently, infrastructure projects such as Ho Chi Minh City's Ring Road 3 and Metro Line 1, along with Hanoi’s more advanced network of ring roads and metro lines, are facilitating suburban growth. Developers are not waiting for infrastructure completion but are proactively investing in these emerging areas, often building internal amenities ahead of resident arrival. This strategy is evident in large-scale projects along Ring Road 3 and even extending towards Ring Road 4, signaling that real estate and population shifts closely follow infrastructure expansion.
While the suburban shift presents opportunities, Mr. Tuan cautions investors to be mindful of a project's ability to foster a vibrant residential community. Many developments around Ho Chi Minh City have struggled to attract residents despite ambitious plans, leading to liquidity challenges and losses for early investors. He stresses the importance of evaluating whether a project has sufficient surrounding amenities and clear developer commitments to support community formation. Without these, projects risk becoming stagnant and illiquid.
Beyond land plots, the real estate market in Vietnam is also evolving towards more sophisticated investment themes. The 'Impact 2025' report by Savills highlights a transition from traditional location or segment-based investing to theme-based strategies. Sectors such as data centers, healthcare, education, senior living, and logistics are gaining prominence due to their counter-cyclical nature and alignment with long-term social trends.
Vietnam’s rapidly growing middle and upper classes are driving demand for quality healthcare and education, while the aging population is prompting developers to explore retirement communities and elderly care facilities. Logistics real estate remains a fertile ground for investment, buoyed by expanding transport infrastructure and the e-commerce boom.
Mr. Neil MacGregor, Senior General Director of Savills Vietnam, notes that investor confidence is poised to improve significantly as planning approvals accelerate and project deployment becomes more straightforward. He points out that suburban markets offering affordable housing stand to benefit most from infrastructure upgrades. Meanwhile, in central urban areas, branded residences—luxury apartments with international brand affiliations—are expected to attract affluent domestic and foreign buyers, mirroring trends seen in Bangkok and the Middle East.
Data from Savills for the first quarter of 2025 supports this optimistic outlook: Hanoi sold nearly 8,000 apartments, a 49% increase year-on-year; Ho Chi Minh City's Class A office spaces reached 88% occupancy; and the retail sector maintained a robust 94% occupancy rate. These indicators suggest the market is not only entering a new growth cycle but also undergoing structural realignment.
Another key trend emphasized by Savills is the prioritization of sustainable cash flow through enhanced tenant experiences. Investors are increasingly focusing on asset quality, operational efficiency, and alignment with tenant needs. In Vietnam, this has led to a surge in Class A office construction, particularly in Hanoi, where tenants seek amenities that improve employee well-being—such as superior air quality, natural lighting, gyms, and shower facilities.
Savills has implemented tenant engagement software in its managed buildings to foster community and participation in social and sporting events. Additionally, domestic developers are beginning to embrace sustainability by pursuing internationally recognized green certifications and environmentally friendly designs. Nonetheless, considerable work remains to integrate sustainability fully into Vietnam’s real estate sector, encompassing carbon footprint reduction, energy and water conservation, and waste management.
In this evolving landscape, experts advise investors to adopt long-term strategies, avoid herd mentality, and prioritize properties with full legal compliance, synchronized infrastructure, and high liquidity potential. As Vietnam’s real estate market matures, these principles will be essential for navigating its complexities and capitalizing on emerging opportunities.
