The Vietnamese real estate market is positioned for significant growth as it enters 2025, reflecting both economic stability and favorable government policies aimed at fostering foreign investment.
Recent reports indicate promising trends, particularly in the industrial real estate sector, where the total area of industrial land reached 16,700 hectares by the third quarter of 2024, marking a 16% increase compared to the previous year. This expansion corresponds with the establishment of new industrial parks, which has led to an overall occupancy rate decrease to 68%, thereby allowing more new investors to enter the market.
Rental prices for industrial land have also seen an uptick, climbing to approximately $130 per square meter, which is up 5.7% from the previous year. Notably, areas with high demand, such as Bắc Ninh and Hưng Yên, have experienced rental price surges of up to 10%.
New industrial parks, which supply nearly 2,000 hectares of leasable area, cater to sectors including electronics, textiles, and automobile production. Bắc Ninh has emerged as the frontrunner for attracting foreign direct investment (FDI), boasting $1.1 billion of new capital inflow to its industrial parks for 2023, representing a staggering 163.7% growth from the previous year.
At the same time, Vĩnh Phúc is becoming increasingly appealing with plans for foreign investment projects, indicating broader economic dynamism across the region. For example, Bắc Giang has recently approved several industrial parks, collectively amassing vast capital investments. The government has shown support through various investment facilitation decisions, including major projects slated for rollout.
According to Thomas Rooney, Senior Manager at Savills Hanoi, the coming period will witness significant developments particularly within southern provinces near Hanoi, such as Nam Định and Thái Bình. These areas, historically recognized for textile investments, are now beginning to attract higher-value industrial investments, buoyed by competitive land pricing and abundant labor pools.
Beyond industrial estates, the apartment market also showcases strong metrics. Savills reports the average apartment price in Ho Chi Minh City has reached 91 million VND per square meter, reflecting a remarkable 36% quarterly increase and 33% increase year-on-year for the fourth quarter of 2024. New sales largely involve luxury projects valued at 80 million VND per square meter and above.
Market experts anticipate this trend toward high-end developments will dominate the narrative for 2025, particularly because new supply continues to remain under 65 million VND, making affordable housing increasingly rare. Indeed, only about 1,300 units were recorded at this lower price point across the city last year, marking the lowest supply level seen over the past decade.
Despite rising prices, there remains a strong demand for high-end apartments, with 2,800 transactions executed successfully during the fourth quarter of 2024—76% of which involved properties priced above 80 million VND. Investors recognize the strong appreciation potential of properties, particularly those near transport infrastructures like metro stations.
Impactful new laws, such as the 2023 Housing Law which took effect on August 1, 2024, have made foreign ownership of property easier, with over 2,800 apartments sold to foreign clients last year. This legislative shift has also galvanized the non-local workforce's interest, particularly as Hanoi continues to be seen as attractive for foreign professionals.
VARS, the Vietnam Association of Realtors, noted around 75% of the housing market's foreign buyers are from China, Hong Kong, Taiwan, and South Korea. The consistent increase of global investors reflects the nation’s appeal as the real estate market showcases potential for profitable returns against the backdrop of economic growth.
Looking forward, analysts predict 2025 will witness approximately 23,000 to 30,000 new apartments launched, with emphasis placed on affordable housing and social housing projects to address rising local demand. Investors are expected to hone their strategies to provide economically viable options, even as competition remains fierce.
With anticipated improvements to legal frameworks, strong macroeconomic growth, and the influx of foreign investment, the Vietnamese real estate market is poised for dynamic changes not only for 2025 but beyond. According to Đỗ Thu Hằng, Senior Director at Savills Hanoi, the upcoming phase will be characterized by sustainable development, highly competitive project bids, and greater foreign investor engagement.
This comprehensive approach to revitalizing the market will mark not just recovery but signal the birth of new trends as market players collaborate strategically, driving Vietnam’s economy and real estate spaces forward.