Which Real Estate Sector is Experiencing the Most Significant Price Surge?

Real Estate Remains an Attractive Investment Channel

According to PropertyGuru Vietnam’s market report, over the past two years, property prices have generally continued to rise across most categories. Land plots saw the most significant increase, up 44% compared to Q1/2024, followed by apartments with a 42% rise. Other property types, including private houses, project land, and townhouses, increased by 28%, 14%, and 1%, respectively, during the same period.

By property type, in the first 8 months of 2025 compared to the same period in 2024, project land plots recorded the best growth in both interest (up 40%) and listings (up 17%). Meanwhile, other property types such as apartments, private houses, and land plots saw a 3-8% decrease in interest and a 5-10% increase in listings.

Mr. Nguyễn Quốc Anh, Deputy General Director of PropertyGuru Vietnam, stated that the continued rise in property prices is a result of strong money supply growth through flexible monetary policies aimed at achieving high economic growth. Additionally, the prolonged scarcity of primary supply and investor confidence in future price increases have contributed to this trend.

“This indicates that real estate remains an attractive investment and asset accumulation channel. However, it also poses challenges in terms of housing accessibility for middle- and low-income earners. This trend may continue if legal and supply bottlenecks are not thoroughly resolved,” said Mr. Quốc Anh.

Regarding rental prices, PropertyGuru Vietnam’s data shows that rental rates have remained largely stable across most property types over the past two years, with only a 7% increase in townhouse rentals.

Similarly, Mr. Võ Hồng Thắng, Deputy General Director of DKRA Consulting, noted that the Ho Chi Minh City apartment market and its surrounding areas have shown positive recovery signs in the first 8 months of 2025, with strong growth in both supply and demand. Over 28,000 apartments were launched, a 58% increase year-on-year, with absorption rates exceeding 20,000 units—more than triple the 2024 figure.

In the townhouse and villa segment, supply reached over 10,000 units, up 71%, with consumption quadrupling year-on-year to nearly 5,000 units. Land plots saw a modest 3% supply increase but a 2.2x jump in absorption, with over 1,100 units sold.

The market’s reach has expanded beyond Ho Chi Minh City to neighboring provinces. Former Long An Province stood out, accounting for approximately 40% of supply and 67% of primary consumption in the townhouse and villa segment.

Meanwhile, former Bình Dương Province surpassed Ho Chi Minh City in both apartment supply and consumption, capturing 45.5% and 46.7% of the market, respectively. However, segmentation remains evident, with Ho Chi Minh City focusing on high-end, Class A apartments, while Class B and C apartments lead the market in neighboring provinces.

“To meet changing customer needs and expectations, developers must adjust their strategies, focusing on products that cater to real housing demand and affordable pricing. The development of satellite cities with synchronized infrastructure is also crucial. The trend toward green, smart, and sustainable real estate is gaining traction among developers, aiming to enhance residents’ living experiences,” said Mr. Thắng.

Positive Market Signals

Mr. Vương Duy Dũng, Deputy Director of the Department of Housing and Real Estate Market Management under the Ministry of Construction, affirmed that the real estate market has shown positive signals since the beginning of 2025, with supply reaching approximately 120% of the previous year’s level. Product diversity has also improved, ranging from commercial apartments and townhouses to social housing projects, catering to various market segments.

While property prices remain high, the market has not experienced overheating. To ensure sustainable market development, the government is focusing on reforming investment, land, planning, and construction procedures to simplify processes and reduce costs for businesses, thereby increasing supply.

“Overall, Vietnam’s real estate market is on a stable trajectory, supported by macroeconomic policies, improved supply, and enhanced product quality. Challenges persist, but the potential for sustainable growth is clear if the government and businesses work together to balance prices, supply, and real demand,” said Mr. Dũng.

Similarly, the Ho Chi Minh City Department of Construction assessed that the real estate market has gradually recovered, shifting from a decline in 2023 to positive growth since the beginning of 2024, reaching 2.6% by the end of 2024. Although growth remains slow, there are positive signals and highlights in market activities. Several new projects have been approved, and previously stalled projects have resumed thanks to resolved difficulties.

The Ho Chi Minh City Department of Construction forecasts that the market will continue its recovery in 2025, albeit slowly without significant breakthroughs. Prices may rise slightly in some segments due to adjustments in the city’s land price schedule, but no major fluctuations are expected. New supply will gradually increase, contributing to higher transaction volumes next year. The apartment segment remains the most promising due to slow supply growth and high demand.

Ms. Đỗ Thu Hằng, Senior Director of Research and Consulting at Savills Hanoi, stated that in the second half of 2025, Savills predicts approximately 11,500 apartments will be launched in Hanoi, primarily in the Class A and B segments. Product diversification remains limited.

From 2026 onward, as pilot projects complete legal procedures, new supply is expected to surge. Between 2026 and 2027, the Hanoi market is projected to welcome around 46,600 apartments from 43 projects, mostly located outside the city center. This could lead to price adjustments, but these are likely to occur in areas with abundant land and underdeveloped infrastructure.

“For projects in strategic locations along Ring Road 2 and Ring Road 3, developed by reputable developers, prices are expected to remain stable or increase slightly due to scarcity and real demand. Overall, rather than a market-wide price drop, we will see clear segmentation based on location and project quality,” said Ms. Hằng.