Real Estate

Resurgent Demand for Real Estate Investment

With interest rates on deposits steadily declining over the past two years, investors are increasingly turning their attention back to the real estate market.

Administrator

23 September, 2025

The Ho Chi Minh City real estate market is witnessing a significant shift, with the number of investors now outpacing actual homebuyers. This trend is driven by several factors: expectations of price increases, the search for a safe haven for capital, and the allure of rapidly developing satellite areas.

Surging Transactions

According to the latest survey by DKRA Group, 50% of real estate buyers in Ho Chi Minh City and its surrounding areas are investors, primarily focused on long-term gains. Data from the first eight months of the year highlights a robust market recovery. The supply of apartments reached over 28,000 units, a 58% increase year-on-year, with absorption rates exceeding 20,000 units, a 3.1-fold rise. For townhouses and villas, the supply surged by 71% to over 10,000 units, with sales quadrupling compared to last year. Even land plots, despite a modest supply increase, saw absorption rates double.

A recently launched apartment project in the outskirts of Ho Chi Minh City. Photo: TẤN THẠNH

“The most common age group for investors is 35-44, accounting for 37%, while first-time homebuyers are predominantly younger, aged 25-34, making up around 40%. This reflects differing priorities. First-time buyers are often more concerned with location, amenities, and living environment, whereas investors, typically already property owners with disposable income and financial experience, focus on profitability and potential price appreciation,” said Mr. Võ Hồng Thắng, Deputy General Director of DKRA Group.

Ms. Xuyên, a resident of Vĩnh Hội Ward, Ho Chi Minh City, shared that with a stable banking job and a monthly income of 80 million VND, she leveraged a bank’s preferential loan policy to purchase two apartments in Vinhomes Grand Park (Long Bình Ward, Ho Chi Minh City). Her goal is both investment and rental income to offset loan interest. “The rental income covers the interest, and in a few years, I’ll own another apartment,” she said.

Meanwhile, Ms. Phương from Thủ Đức Ward, already owning multiple properties in Ho Chi Minh City, Đồng Nai, and Lâm Đồng, recently invested in a project in Long Hậu (formerly Cần Giuộc, now part of Tây Ninh Province) priced at 6-7 billion VND, also for investment purposes. “In my experience, real estate is a safe bet; it doesn’t depreciate, unlike other investment channels,” she shared.

Mr. Tạ Trung Kiên, CEO of Wowhome Real Estate, noted that declining deposit interest rates over the past two years have made real estate an attractive investment. Home loan rates are also low, with many banks offering preferential rates as low as 7% for young buyers. Additionally, the new Real Estate Business Law enhances transaction transparency, reduces legal risks, and boosts investor confidence. “The removal of land price caps and the introduction of market-aligned price tables present significant opportunities for early profits,” Mr. Kiên emphasized.

Furthermore, Ho Chi Minh City and the Mekong Delta region are experiencing their most intensive infrastructure development phase in years. Key projects like Ring Road 3, the Ho Chi Minh City – Mộc Bài Expressway, Metro Lines 2 and 3A, along with the completed Metro Line 1 and several expressways, are creating a synchronized connectivity network, directly boosting real estate values. “Land, apartment, and plot prices in Ho Chi Minh City and its bordering areas are rising sharply, offering investors dual benefits: capital gains and rental income,” Mr. Kiên added.

Shifting Investment Capital

A notable trend is the influx of capital from Northern Vietnam into the South, as investors find that renting out properties in Ho Chi Minh City yields higher returns than in other markets. Mr. Trần Minh Tiến, Director of Market Research and Customer Insights at One Mount Group, believes Ho Chi Minh City’s real estate market has entered a new growth cycle.

According to Mr. Tiến, the expansion of administrative boundaries, particularly the integration of Bình Dương and Bà Rịa – Vũng Tàu into Ho Chi Minh City, has created a mega economic hub, broadening development space and attracting large-scale investment. Coupled with accelerated public investment and the launch of numerous infrastructure projects, this presents vast opportunities for the real estate market. The TOD (Transit-Oriented Development) model, for instance, has earmarked 46 land plots totaling over 7,300 hectares for development. Eleven pilot sites along Metro Lines 1, 2, and Ring Road 3 are expected to transform suburban areas into new urban centers. Mr. Tiến predicts that property prices in these areas could rise by 20-30% once infrastructure is completed. “Key infrastructure projects like Ring Roads 2 and 3, Metro Lines 1 and 2, and the Thủ Thiêm 3 and 4 bridges are progressively enhancing connectivity. The development of Thủ Thiêm into a new international financial center is expected to drive demand for Grade A offices and luxury housing, solidifying Ho Chi Minh City’s position as the nation’s most dynamic market,” Mr. Tiến said.

Dr. Phạm Viết Thuận, Director of the Ho Chi Minh City Institute of Economics and Environment, views the rise in investment-driven property purchases as a normal trend, reflecting the real demand for idle capital. “The shift from homeownership to investment signifies the maturity of Vietnam’s real estate market,” he stated.

Experts predict that Ho Chi Minh City’s real estate market could explode by 2030, as major infrastructure projects come online and Thủ Thiêm establishes itself as an international financial hub. These developments will not only drive record property price increases but also attract significant international capital and a high-caliber professional community.

From another perspective, Mr. Trần Khánh Quang, CEO of Việt An Hòa Real Estate, noted that while the market supply is ample, most properties are high-end. Buyers are primarily existing homeowners looking to invest and sell at a profit later.

Additionally, some new real estate regulations have inadvertently created imbalances. For example, stricter regulations on land subdivision, land use fee payments, and the “self-negotiation” compensation mechanism have hindered smaller projects. In contrast, large-scale projects, supported by state compensation, enter the market at prices far exceeding actual costs. This distorts the market, making prices misaligned with value and limiting opportunities for secondary investors.

Boosting Affordable Housing

Given the government’s focus on affordable housing, Mr. Trần Khánh Quang suggests accelerating social housing projects and encouraging investment in mid-range commercial housing. Streamlining legal procedures to bring affordable projects to market faster is crucial, fostering competition with high-end products and promoting a healthier market balance.

SƠN NHUNG

– 06:45 23/09/2025