Real Estate

Revived Real Estate Market in Ho Chi Minh City: A Legal Minefield for the Uninformed

Northern investors are increasingly eyeing the Ho Chi Minh City real estate market. However, disparities in legal frameworks, urban planning, and market dynamics can lead to unmet expectations for those unfamiliar with the Southern landscape. Understanding the local "rules of the game" is crucial for success in this vibrant market.

Administrator

17 November, 2025

Northern Capital Flows Southward

As the year-end approaches, Ho Chi Minh City’s real estate market heats up, with the Eastern region taking center stage. According to DKRA Group’s data, new housing supply in this area accounts for nearly 97% of the total primary market supply. This highlights the concentrated capital flow and development strategies focused on this region.

In the luxury apartment segment, Masterise Homes recently launched the high-rise Masteri Park Place. The developer is now accepting reservations for Tower A, following the sold-out success of Tower B.

Gamuda Land’s high-end Eaton Park project on Mai Chi Tho Avenue has also seen continuous launches throughout the year. The next sales phase has recorded higher prices compared to previous launches.

In the Nam Rach Chiec residential area, Dat Xanh Group’s The Privé project stands out in the high-end apartment supply. With nearly 3,200 units, over 1,000 were sold during the first phase launch in August. The developer is now proceeding with Phase 2, showcasing the market’s strong absorption capacity for luxury properties.

In the mid-range segment, Dien Phuc Thanh’s MT Eastmark City project has introduced new towers, significantly boosting market supply.

At the “Riding the Eastern Saigon Wave: Golden Opportunities for Hanoi Investors” event held on November 16 in Hanoi, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, shared insights. Following the historic administrative merger, Ho Chi Minh City and Dong Nai are emerging as key growth drivers in the Southeast region.

The formation of the new Ho Chi Minh City (encompassing Ho Chi Minh City, Ba Ria – Vung Tau, and Binh Duong) and the new Dong Nai (including Dong Nai and Binh Phuoc) goes beyond administrative expansion. It merges strengths to create a key economic region. Post-merger, Ho Chi Minh City’s GRDP reached over 2.7 trillion VND (2024), leading the nation, while Dong Nai ranks fourth with over 609 trillion VND.

Enhanced infrastructure in HCMC boosts real estate appeal. Photo: Nguyen Hue

The merger of HCMC with Binh Duong and Ba Ria – Vung Tau has become a powerful catalyst for the Southern Key Economic Region. Numerous inter-regional infrastructure projects are accelerating, forming a robust connectivity network to attract investment and drive urban development.

Leading real estate conglomerates in the region are also playing a pivotal role in shaping the market.

“The Eastern region is nearly the only area with sufficient land for large-scale urban development. This is why Hanoi investors are increasingly interested. In the next 5-10 years, this area will be the Southern market’s focal point,” emphasized Mr. Quoc Anh.

According to Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, Eastern HCMC real estate is entering a new growth cycle, driven by three key factors: infrastructure, capital flow, and real demand. The Dong Nai River-centric development model is likened to the Red River urban chain, promising a complete urban-industrial-service belt in the near future.

In the short term, investors should prioritize areas with established urban developments, suitable for leasing or real residential needs. Long-term, infrastructure progress and urbanization speed will determine the Eastern region’s true value in the next development cycle.

Northern investors eye Southern real estate projects

Southern Legal and Planning Challenges for Northern Investors

Batdongsan’s Q3/2025 data shows a 28% increase in Northern buyers’ interest in HCMC apartments compared to the same period last year.

This shift reflects capital migration as Northern prices soar. Many Hanoi areas have reached new highs, squeezing rental yields. Stagnant rents relative to rising prices reduce investment efficiency, prompting investors to seek markets with better growth potential.

HCMC and neighboring provinces are forming new growth drivers. Projects like Ring Road 3, Ring Road 4, the HCMC-Long Thanh-Dau Giay Expressway expansion, and Metro Line 1 enhance regional connectivity, sustaining high housing demand in well-developed areas.

Large-scale projects in the East, South, and satellite cities add market vibrancy. However, transaction growth is concentrated in projects with clear legal status, synchronized infrastructure, and completed units, rather than market-wide.

Despite positive signals, experts warn the Southern market isn’t straightforward for those lacking legal understanding. Nearly half of Hanoi investors interested in HCMC properties are willing to decide quickly, but risks are rising.

The first difference lies in investment mindset. In Hanoi, investors often buy land and wait for infrastructure. This model is less viable in HCMC, where low-rise land is limited, and development focuses on high-rises in detailed planning zones. Undeveloped areas often face long-term restrictions, limiting asset value growth.

The second difference is legal rigor. HCMC has long been a hotspot for illegal land subdivision and agricultural/public land projects. Northern investors often fall victim by relying on recommendations without verifying legal documents or obtaining official sales approval. This leads to disputes, delays, or construction halts.

Additionally, HCMC’s centralized planning is frequently updated to align with compact urban development. This contrasts with some Northern localities, where planning lags behind infrastructure. Understanding local planning is crucial to avoid restricted or stalled zones.

Given the market’s selective nature, short-term speculative strategies are less effective in HCMC. The city’s strong real demand from high mechanical population growth sustains stable segments, rather than speculative products.

Projects with complete legal status, transparent developers, and strategic locations remain attractive. While profits aren’t short-term, they offer sustainable value growth tied to infrastructure progress. Notable examples include Dat Xanh Group’s The Privé, valued for its transparency, premium quality, and prime location.

The market also favors projects with integrated amenities, efficient management, and practical unit sizes. Investors increasingly focus on rental potential and liquidity, rather than price speculation.

Northern capital inflows highlight the South’s appeal amid Hanoi’s high prices. However, success requires understanding local planning and legal nuances.

HCMC real estate is evolving toward healthier, legally compliant, and value-driven development. This marks a more stable market phase, where product quality and management are key, over short-term price expectations.

Minh Quân – Anh Phương

– 08:22 17/11/2025