Supply and transaction volumes across all segments rose, signalling renewed interest from investors and genuine buyers.

The State Bank of Viet Nam reported positive developments in real estate credit during the first quarter of 2025. As of February 28, 2025, outstanding credit for real estate activities reached around 1.49 quadrillion VND (57.17 billion USD) —an increase of around 25% year-on-year and approximately 2% higher than the fourth quarter of 2024 (56.11 billion USD).

Positive signals

Housing development data from localities showed significant growth in the first quarter of 2025. The number of completed commercial housing projects reached 14, comprising around 3,813 units—up by 40%. Additionally, 26 new projects were licensed (15,780 units, up 36%) and 59 projects (19,760 units) were deemed eligible for future sales—up 55.2% year-on-year.

Concurrently, 19 social housing projects for low-income earners and industrial park workers, totalling 16,805 units, were either completed or granted construction permits. Specifically, 11 projects (4,155 units) were completed, and eight projects (12,650 units) were licensed and commenced construction.

Under the project “Building at least one million social housing units for low-income earners and industrial park workers during 2021–2030 period”, a total of 657 projects have been launched nationwide, encompassing 597,152 units. Of these, 103 projects (66,755 units) have been completed, 140 projects (124,352 units) are under construction, and 414 projects (406,045 units) have received investment approval.

The first quarter of 2025 also saw 33,585 successful transactions involving condominiums and detached houses—132% of the fourth quarter of 2024 figures. Land plot transactions reached 101,049, or 116.4% of the fourth quarter of 2024. Overall, real estate transactions in all three main categories (condominiums, detached houses, and land plots) showed an upward trend compared to the fourth quarter of 2024. Inventory across real estate projects in the first quarter of 2025 was approximately 23,400 units/plots—2,339 condominiums, 9,376 detached houses, and 11,685 land plots.

According to Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction) Vuong Duy Dung, real estate inventories declined compared to the fourth quarter of 2024, although unevenly. Inventories of detached houses were at around 83.5% of the levels of the first quarter of 2024, while condominium and land plot inventories remained higher.

Prices in major urban areas remained largely stable compared to the fourth quarter of 2024. Condominium prices in major cities plateaued, no longer experiencing the sharp increases seen in 2024. In Ha Noi, prices remained stable with a few projects seeing increases of around 5%; similarly, in Ho Chi Minh City, certain projects recorded price rises of about 3–4%.

Conversely, prices of villas and terraced houses within projects continued to rise. In Ha Noi, prices increased by 5–10%, ranging from 100–200 million VND (3,800-7,600 USD) per m2. In Ho Chi Minh City, they ranged from 90–250 million VND (3,400-9,600 USD per m2 compared to the fourth quarter of 2024.

Of note, speculation driven by information on provincial and city mergers led to sharp fluctuations in prices and transaction volumes in several localities—especially those rumoured to host new administrative centres, such as Bac Giang, Phu Tho, Ninh Binh, Thai Binh, Hung Yen, Hai Phong, and Dong Nai. However, this surge, mostly speculative, has since slowed. Authorities in these regions have warned citizens to remain cautious of unofficial information and have implemented measures to control and strengthen local real estate market management.

Ongoing measures to stabilise the market

One of the key objectives now and moving forward is to accelerate investment in social and affordable housing to address supply-demand imbalances. The Government, Ministry of Construction, and relevant ministries and localities are working to create a stable legal environment, monitor violations, and take corrective actions.

Children’s playground at the CT08 social housing project, Me Linh Central Urban Area, developed by HUD.

Most recently, Minister of Construction Tran Hong Minh issued a directive urging the chairmen of provincial and municipal People’s Committees to expedite the implementation of social housing construction. Localities are required to integrate 2025 and subsequent social housing targets—assigned under Decision No. 444/QD-TTg dated February 27, 2025—into their socio-economic development indicators and prioritise resources to achieve these goals.

Authorities are encouraged to introduce preferential mechanisms and support measures to create favourable conditions for enterprises and cooperatives investing in social housing. They are also urged to streamline and simplify administrative procedures related to investment in social housing.

According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, many developers are currently investing in affordable housing as social housing prices are no longer as low as before, having factored in all associated costs. In some cases, social housing prices are only around 15% lower than commercial housing.

In addition, demand for fully equipped rental housing at reasonable prices is high—not only among low- and middle-income earners but also among professionals like engineers and office workers. Therefore, policies promoting rental housing development are urgently needed.

Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction) Ha Quang Hung said the Ministry of Construction has submitted a draft National Assembly Resolution on piloting specific policies for social housing development. This includes establishing a National Housing Fund as directed by General Secretary To Lam.

The National Housing Fund will be a state financial entity outside the budget, established at both central and local levels. Its role will be to invest in and create social housing for civil servants, public employees, and workers to lease or lease-to-own—offering more favourable terms in investment procedures, loan interest rates, and eligibility.

Numerous directives from the Government, the Prime Minister, and relevant ministries and sectors are being rolled out to guide, support, and coordinate with localities in addressing obstacles to real estate projects while implementing new policies and legal frameworks. These concerted efforts are expected to foster a more sustainable and stable real estate market moving forward.