The real estate market in the eastern districts of Ho Chi Minh City is showing signs of recovery, with increased activity from both homebuyers and investors. Seasoned real estate broker, Mr. Tr., shared that the market has witnessed a resurgence in buyer confidence and demand, particularly from investors seeking bargain deals. However, compared to the previous year, investors are finding it challenging to source deeply discounted properties as sellers are gradually increasing their asking prices in response to the market’s positive momentum.
Despite this, there are still opportunities to be found. Some investors in need of liquidity are offering attractive deals, which are quickly snapped up by cash-ready investors. Mr. Tr. predicts that with improved buyer sentiment and increased demand following the implementation of new laws, the market liquidity is expected to further improve in the lead-up to the Lunar New Year, and prices could surge by mid-2025.
Our observations indicate a notable increase in property viewings and transactions in the final quarter of 2024, with a 30-40% rise in viewings and a 40% recovery in transactions compared to the previous year. Investors continue to dominate the market, and there is also a growing trend of investors engaging in short-term speculation, targeting distressed properties with prices 20% above the market rates at the beginning of 2022. While this practice is not widespread, it reflects the improving liquidity and the confidence of investors to take on such ventures.
The neighboring provincial land markets are also witnessing a resurgence in investment activity. According to local brokers, large-scale investors are actively seeking land for subdivision and are acquiring multiple plots simultaneously, prioritizing distressed assets with prices reduced by 20% or more from the market average.
The land segment, which once caused significant losses for investors, is now witnessing a resurgence in interest. While prices have shown some recovery, the increase is not yet significant. Many investors are embarking on a land-buying spree in the outskirts of major cities, particularly in areas with robust infrastructure development and rapid urbanization. These regions are experiencing a surge in land transactions, especially for lots that have been subdivided. As demand intensifies, prices are expected to climb once again.
Industry experts predict that the second quarter of 2025 will mark a strong comeback for the land segment, with price increases arriving sooner than initially anticipated due to the current positive investment sentiment. Additionally, the impending regulations on land subdivision will further limit land supply in the future, impacting the price landscape of this segment. In anticipation of these changes, many investors are proactively acquiring land parcels.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn for the Southern region, shared that land prices in the outskirts of Ho Chi Minh City have been on a downward trend for the past two years. However, by 2025, newly launched projects are expected to command significantly higher prices compared to the current market rates. The combination of limited supply and the implementation of laws prohibiting land subdivision will have a noticeable impact on land prices in these areas.
According to Mr. Tuan, with sky-high prices in the city center, the shift towards peripheral areas is inevitable. After a prolonged period of stagnation, the market is poised for a new cycle of growth, fueled by the upcoming completion of several critical infrastructure projects in 2026.
Nevertheless, most experts agree that the upward trajectory of land prices is unlikely to match the frenzied pace witnessed during the market’s peak. The current infrastructure developments, while significant, will take at least two to three years to have a tangible impact on real estate values.
In comparison to land in major cities, provincial land prices tend to lag by a year. We anticipate that provincial land markets will start showing signs of recovery in 2024, following the lead of Ho Chi Minh City, where transactions have been sporadic, mainly driven by distressed assets. Overall liquidity remains weak, and demand signals in neighboring provinces are still unclear.
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