In 2025, the real estate market is expected to grow more stably and sustainably

Many positive factors driving the market

2024 marked an important turning point for the Vietnamese real estate market when a series of new policies were put into effect earlier than expected. The Land Law, the Housing Law, the Law on Real Estate Business and the Law on Credit Institutions 2024, approved by the National Assembly, took effect from August 1, 2024. The early enactment of these laws not only solidifies the Party and State’s new policies and guidelines on housing management and development, but also establishes a robust legal framework, providing a strong foundation to drive the sustainable growth of the real estate market.

According to Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association (VNREA) and Chairman of the Vietnam Association of Real Estate Brokers (VARS), the government’s recent efforts have heralded positive signals. Strong messages have been delivered, requiring the entire political system to focus on removing legal difficulties, promoting public investment and accelerating urbanization. These factors not only help balance the market but also create the premise for the upcoming explosion of real estate segments.

In fact, the first half of 2024 witnessed significantly improved performance of real estate businesses. According to the report, 2,210 new companies were established (1.4% more than in 2023) and 1,577 companies resumed operations (up 11.4%). This showed that business confidence in market recovery markedly increased on a stable legal environment and support policies of the government.

Strong recovery

According to Mr. Vo Huynh Tan Kiet, Director of Housing Marketing Department, CBRE Vietnam, 2025 will be the starting point for a new development cycle, driven by a strong recovery trend. In the north, Hanoi will continue to play a central role in this cycle, expected to have 25,000-30,000 apartments. Meanwhile, Ho Chi Minh City, albeit having a more modest supply scale of about 7,000-8,000 products, still plays an important role in the southern real estate market.

Property prices are expected to be bullish in 2025 because the supply cannot pick up immediately, thus placing pressures on the market, he said. Adoptions will depend on real demands, a factor that has played a key role in keeping the market steady in recent years.

In 2025, the real estate market will develop more stably and sustainably thanks to the experience in previous cycles alongside the support of clear legal policies, Kiet added. However, to achieve the “golden" growth” as in the 2018-2019 period, the market is likely to need a few more years to get full recovery.

According to economic expert, Dr. Dinh The Hien, the property market in 2025 may continue the “unfreezing” process where liquidity revives clearly in big cities such as Hanoi, Ho Chi Minh City and suburban areas. In particular, populous areas like downtown and suburbs will have a faster upturn than farther-lying ones where real estate prices may not increase, or even decrease.

To support the real estate market to recover and develop sustainably in 2025 and beyond, it is necessary to boost public investment by funding large infrastructure projects to enhance regional connectivity and speed up urbanization, according to experts. At the same time, the legal environment also needs to be continuously improved through reviewing and perfecting regulations on land, construction and real estate business to ensure transparency and convenience for businesses.

Social housing development is considered a practical solution to meet real housing demand and stabilize the market. In addition, attracting foreign investment is also an indispensable factor, especially in industrial, recreational and high-end segments. With strong support from the legal corridor, huge market demand and the shift of economic centers, real estate is expected to develop stably and sustainably in 2025. Hanoi and Ho Chi Minh City will continue to lead the country’s real estate market in the new development cycle.