Is the Southern Real Estate Market Making a Comeback in Q2?

Southern Vietnam’s Real Estate Market Heats Up as Developers Launch New Projects

After a period of fluctuations in demand, the real estate market in southern Vietnam, particularly in Ho Chi Minh City, is regaining its momentum. The launch cadence of new projects has increased since Q2 2025, and buyers are ready to enter the market. While the transaction rate hasn’t fully recovered to pre-pandemic levels, absorption rates above 70% in some projects are noteworthy given the volatile macroeconomic environment.

In Ho Chi Minh City, on June 8, 2025, the CitiGrand project in Cat Lai, District 2 (now Thu Duc City) by Kien A Corporation officially launched 100 apartments to the market. During the morning of the launch, 80% of the released units were absorbed. The project has approximately 200 remaining units, with 100 units released in this phase.

This positive sentiment is not limited to Ho Chi Minh City but is also reflected in some apartment projects in neighboring provinces such as Binh Duong and Dong Nai. For instance, on June 8, 2025, the FIATO Airport City project by Thang Long Real Group in Dong Nai Province was introduced to the market and received enthusiastic responses from buyers. More than 300 units were sold during the morning of the launch, making it one of the few successful projects in Nhon Trach, Dong Nai, at this time.

On the same day, La Pura project by Phat Dat in Binh Duong Province recorded good sales performance. Prior to the launch, the project had already received thousands of bookings in a short period. Located on National Highway 13, the project offers units starting from VND 46 million per square meter.

Phu Dong Sky Garden, located near Pham Van Dong Street, is in the final stages of completion and offering red book (land use right certificate). The project launched its last few units with prices starting from VND 43 million per square meter for a 2-bedroom, 70-square-meter apartment. The developer is offering an attractive discount of up to 8% on the apartment value.

Also in Binh Duong Province, the new tower of TT AVIO project is set to be launched soon, with prices starting from VND 35 million per square meter. The first tower of the project has already been successful, with nearly 1,000 apartments sold.

In Long An Province, Nam Long continues to host mini events to introduce villas and mansions in the 355-hectare Waterpoint urban area. Each property in this project is valued at tens of billions of dong, attracting interest from investors, including those from the North.

In the same region, Prodezi is actively promoting its La Home project, offering shophouses and townhouses. Meanwhile, Eco Retreat Long An, a project by Ecopark Group, regularly hosts weekly events and welcomes a steady stream of visitors.

The land plot segment in Long An is also seizing the opportunity to launch new products. In Can Giuoc, Long Hau’s The 826 EC project is preparing to launch with 200 land plots. Meanwhile, Saigon River Park by the same developer is selling the remaining plots, witnessing positive market interest. Secondary market prices have increased by about 10% compared to the beginning of 2025.

While the first half of 2024 witnessed a slow pace in real estate transactions in the South, the simultaneous launch of projects since the beginning of 2025 has attracted positive market response. Projects in the price range of VND 50-60 million per square meter in Ho Chi Minh City and VND 30-45 million per square meter in Binh Duong and Dong Nai provinces are experiencing good liquidity.

It’s evident that since the beginning of 2025, capital is flowing back into the southern real estate market. The apartment segment remains resilient, albeit not booming, but showing stability. Projects with favorable locations, reasonable price ranges, and clear legal frameworks continue to perform well in terms of liquidity. Price competition and sales policies are creating a vibrant atmosphere in the market.

Real Estate Prices Expected to Rise Further

The improved liquidity in the southern apartment market can be attributed to several factors. Firstly, authorities have addressed legal, planning, land valuation, and investment procedure obstacles, accelerating project progress. Secondly, robust infrastructure development has boosted market demand. Additionally, buyer confidence has returned, and positive demographic trends have sustained actual housing needs. With limited new supply, projects with complete legal documentation have a competitive edge and perform well in terms of sales.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokerage Association (VARS), the real estate market is showing clear signs of transformation, although it hasn’t reached pre-pandemic levels. In 2025, numerous public investment projects, especially key transportation infrastructure, are being accelerated. Coupled with rapid urbanization in many localities and supportive government policies, these factors are driving the real estate market towards a faster recovery.

Therefore, the main product segments of the market are expected to witness positive developments. Apartments will continue to play a leading role, while industrial real estate will maintain its growth trajectory. Land plots, villas, and adjacent houses will become more vibrant, and tourism real estate will also have opportunities.

However, Mr. Dinh noted that the application of new land price frameworks based on market prices by localities could lead to higher cost bases, making it challenging for housing prices to decrease even with increased supply. This may hinder market absorption, especially for luxury projects. Therefore, the government should consider adjusting land-related costs to make housing prices more affordable and ensure the stable and sustainable development of the real estate market.

Sharing his insights, Mr. Nguyen Xuan Quang, Chairman of the Board of Directors of Nam Long Group, stated that 2025 marks the beginning of a new development cycle for the real estate market after the bottoming-out period of 2022-2024. This new cycle will be characterized by enhanced transparency and sustainability, with new real estate laws being applied in practice. It also signifies the market’s maturation.

In this new cycle, transportation infrastructure will drive the markets in satellite cities around major urban centers. As potential increases, so does real estate value. Currently, satellite cities have abundant land funds at reasonable prices. However, from 2026 onwards, the new land use fee calculation formula based on the new land price framework will significantly increase land costs, making clean land less accessible than before.

Echoing the sentiment, Ms. Duong Thuy Dung, Executive Director of CBRE Vietnam, affirmed that housing prices are not expected to decrease in 2025 despite a predicted increase in supply. The push for infrastructure development nationwide will further boost demand and prices in the future. From now until 2030, key transportation infrastructure projects will be implemented with significant investments.

Ms. Dung highlighted the challenge of providing affordable housing options for the majority of buyers, especially considering that 80% of the current supply belongs to the luxury and ultra-luxury segments. This issue can be addressed by promoting urban decentralization and ensuring that infrastructure development precedes it. If urban decentralization lags, housing prices will continue to rise, she emphasized.