The Vietnamese real estate market is showing signs of recovery following the Tet holiday, reflecting both increased buyer interest and slight adjustments to property prices.
According to the PropertyGuru Vietnam market report, during the first half of February 2025, the average selling price of apartments reached approximately 62 million VND per square meter in Hanoi and 57 million VND per square meter in Ho Chi Minh City. These figures represent minor adjustments compared to January 2025, where prices were noted to be slightly above these levels.
After Tet, the demand for real estate surged significantly. Notably, inquiries about real estate surged by four to six times compared to the periods leading up to the holiday, which indicates strong interest from prospective buyers. The number of listings for sale and rentals also saw substantial increases, approximately fourfold week-on-week, particularly for apartments and land lots.
Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam, remarked on the need for thorough financial planning before making property purchases. He stated, "For those buying real estate for housing, any time to buy is right, as long as financial calculations are thorough." His advice underlined the importance of financial prudence, noting the significant investments typically required for property ownership.
Despite these increases, the report emphasizes the necessity of careful decision-making, especially for younger generations. Data has shown consistent trends over the years, where individuals across different generations have faced mounting challenges to secure homeownership.
Historically, younger individuals, such as those born in the '90s, now find it takes close to 25.8 years of savings to purchase their first apartment valued at around 3 billion VND. Comparatively, back in 2004, someone from the '70s generation would require approximately 31.3 years of income to purchase their first home worth 0.6 billion VND with interest rates at 7.4%.
Batdongsan.com.vn's analysis emphasizes the persistent difficulties young people have encountered over time. Despite progress made incrementally over the years with declining interest rates and the average years of income needed, the reality remains stark for millennials and Gen Z. Experts agree these generational shifts indicate not just economic burdens but also changing lifestyle aspirations.
Market dynamics reveal how different regions and property types remain attractive for both living and investment. Experts assert there is increasing interest particularly in suburban areas of major cities like Hanoi and Ho Chi Minh City. Segments of the market, such as land lots, continue to garner attention, particularly due to the rapid urban development seen surrounding these metropolitan areas.
“Many property developers and banks support loans up to 80-85% of the product value, but buyers should have at least 30-40% funds available,” advised Nguyen Quoc Anh. This advice is particularly aimed at ensuring purchasers have sufficient liquidity to manage their financial commitments post-purchase.
Investor sentiment has shifted toward cautious optimism, with many weighing options across various property segments. The fluctuated state of international markets has prompted investors to examine wherein the domestic market they can find stability and yield. This is compounded by the complex regulatory environment affecting project development and sales, particularly for new developments within urban centers.
This year has also seen positive shifts, with new business registrations climbing by 65% to 273 entities, signifying renewed confidence among real estate developers. Activity among returning businesses also increased by 51%, indicating willingness to re-engage with the market.
While excitement builds around potential price adjustments, experts caution investors against succumbing to market fervor. Vo Hong Thang, Deputy Director of DKRA Group cautioned, "Land lots will continue to lead the market, but investors need to avoid getting caught up in market fever." This suggests the prevailing sentiment of ensuring investment decisions remain grounded, avoiding impulsive actions driven by speculative trends.
The unyielding demand for apartments and land across key urban centers showcases the market’s resilience. The evidence indicates sustained interest from first-time buyers, especially within the annual peak periods post-holidays. The overall market atmosphere reflects both cautious optimism and a clear acknowledgement of the potential risks involved.
With these dynamics at play, real estate experts continue to call for prudent investments. Proper market analysis, coupled with careful financial planning and adherence to realistic expectations, will be the cornerstone for making informed decisions moving forward.