Apartment Prices Continue to Rise
According to experts, apartments will continue to exhibit strong growth until the end of the year and are expected to attract significant investment capital.
Ms. Nguyen Hoai An, Senior Director of CBRE Vietnam, predicts that Hanoi apartment prices will continue to rise in both the primary and secondary markets until 2026. This growth is estimated to be over 20% per year, a record-breaking figure. From 2026 onwards, the growth rate may stabilize as a new price level is established. Meanwhile, Ho Chi Minh City is witnessing a steady price increase of 5-6% annually.
Mr. Le Dinh Chung, CEO of SGO Homes, shares a similar outlook, anticipating a 5-10% average price increase for Hanoi apartments from now until the end of the year.
This upward trend is expected to persist into the next year due to the short-term lack of significant changes in the supply of Hanoi apartments.
Apartment prices are forecast to keep rising. (Illustrative image: Cong Hieu)
Mr. Pham Duc Toan, CEO of EZ Property, concurs that, in the second half of this year, apartments will remain the leading segment in terms of liquidity compared to land, houses, or vacation properties.
Given the significant supply-demand gap in this sector, apartment prices, especially for new projects, are unlikely to decrease in the foreseeable future.
For investors, experts advise that those who are adventurous and have ample financial resources can still invest in this segment until the end of the year. However, it is recommended to avoid using financial leverage or taking on risky loans for investment purposes.
Outskirt Land Attracts Buyers
Another real estate segment expected to perform well is outskirt land.
Mr. Le Dinh Chung believes that, by year-end, investment capital will shift towards new segments and markets, with outskirt land becoming a popular choice for many.
Outskirt land is expected to be a popular choice among buyers towards the end of the year. (Illustrative image)
Observing recent market trends, Mr. Chung affirms that this shift in investment preference is becoming increasingly evident. Buyers with financial capabilities of VND 5-10 billion are now exploring new regions as they are priced out of the Hanoi market, where apartment, villa, and townhouse prices are prohibitively high.
Since May, satellite and outskirt areas in provinces like Hung Yen, Bac Ninh, Bac Giang, Hai Duong, Phu Tho, and Hoa Binh have become investment targets. The market is witnessing a recovery in the segment of products priced below VND 10 billion in these provinces.
Mr. Chung also notes that, recently, certain outskirt areas of Hanoi have experienced a “land fever,” with prices increasing by 10-20% compared to the beginning of the year. The market is witnessing the emergence of a generation of professional and well-informed investors. They prioritize properties with houses on the land, accompanied by essential utilities and services, indicating a preference for sustainable investments.
Mr. Dinh Minh Tuan, Director of Property Guru Vietnam, shares this viewpoint, stating that the number of investors with ready capital to purchase outskirt land is on the rise. As demand becomes more apparent, prices will increase. Several brokerage firms have confirmed that land prices have been adjusting since March this year.
Mr. Tuan explains that the early recovery of the land market is driven by two factors: the anticipation of changes in new laws and the saturation of other investment channels.
The revised Law on Real Estate Business and the Law on Housing will significantly impact the land market from 2024 onwards. The stricter regulations on land subdivision are a hot topic, and it is predicted that the supply of subdivided land plots will decrease sharply after 2025. However, the demand for land is unlikely to decrease in the long term due to its popularity among Vietnamese investors.
With limited supply and high demand, land prices are expected to rise. Many investors, anticipating this trend, will start scouting for land deals before the new laws take effect.
Essentially, land is an easy-to-purchase asset that comes with a title deed, offers stable and safe ownership, has good profit potential, and, most importantly, is currently priced “softly” compared to 2-3 years ago.
Land is also a versatile investment option, catering to a diverse range of investors due to its variability in area, price, and location.
Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), agrees that, recently, land in many outskirt areas has been “heating up.”
As a result, many investors are scouting for land in localities with well-developed infrastructure and rapid urbanization. Several areas have witnessed a “sudden” increase in land transactions, especially for plots that have been subdivided.
“
The market has recorded instances of “unjustified price increases” in certain areas. It is essential to remain cautious to prevent the formation of “artificial” fevers that could jeopardize the market’s safety during its recovery process
”, warned Mr. Dinh.
Auctioned Land Heats Up Again
One segment that has been particularly active recently and is recommended by experts for investment is auctioned land in the provinces.
Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, analyzes that the prices of auctioned land are currently soft, mainly ranging from VND 2-3 billion, making it liquid and suitable for many people’s financial situations in the current context.
Additionally, the outskirt districts of Hanoi have the advantage of large land funds and development potential. In a rising market, these areas will not miss the opportunity to boost their local budgets through land auctions.
Dr. Nguyen Van Dinh, Chairman of VARS, assesses that land in the outskirts of major cities, in localities with well-developed infrastructure and rapid urbanization, is still attractively priced and has room for future growth. Therefore, the appeal of auctioned land remains strong.
This segment also holds a special place in the hearts of investors due to several factors, notably the preference for houses with attached land, the desire for secure asset accumulation, and the high potential for profit from land investments.
The expert predicts that the real estate market will witness positive developments this year. Thus, if investors can secure good deals at this time, they may reap considerable profits when the market enters its recovery cycle.
