After two years of investing in apartments in Hanoi with shrinking profit margins, Mr. Nguyen Hai Linh (Cua Nam Ward, Hanoi) decided to shift his capital to Ho Chi Minh City for short-term investments. In early 2025, he purchased an apartment priced at 2.5 billion VND in the outskirts of the city.
According to Mr. Linh, Ho Chi Minh City, post-merger, has significant potential for price increases. In Hanoi, a 60 m² apartment in an area with good living quality is nearing 5 billion VND, while in Ho Chi Minh City, it’s only 3-4 billion VND.
Last October, Mr. Linh sold the apartment he invested in earlier that year in Ho Chi Minh City for 3.2 billion VND, making a profit of 700 million VND in less than 10 months. “The prices are lower than in Hanoi, coupled with the infrastructure being boosted and high housing demand, investing in the Ho Chi Minh City market will yield better returns,” Mr. Linh commented.
Data from the Vietnam Real Estate Market Research and Evaluation Institute (VARS IRE) also shows that by the end of Q3/2025, about 30% of transactions in the Southern region were from Northern investors, a 10% increase from Q2 and double the same period last year.
Many Hanoi investors are seeking real estate projects in Ho Chi Minh City. (Illustrative image)
Besides long-term holders, there’s been an increase in short-term investment transactions, particularly in projects by major developers where prices are lower compared to Hanoi.
Data from PropertyGuru Vietnam also indicates that Northern investors dominate the buyer pool for real estate in Ho Chi Minh City in recent quarters.
In the former Binh Duong area, the demand from Hanoi investors has tripled compared to 2023. About 86% of investors plan to hold assets for only 1-5 years, reflecting a “quick in, quick out” strategy rather than long-term exploitation.
Ms. Huong Nguyen, Head of Research at Savills Ho Chi Minh City, notes that the capital shift from the North to the South became more pronounced in Q2 and Q3, especially in Ho Chi Minh City and Tay Ninh, where infrastructure and supply are booming.
According to her, Hanoi investors are experienced in observing planning and anticipating policies, even in outlying projects if the signals are attractive. Information about administrative mergers, planning, and infrastructure development also contributes to market vibrancy.
Mr. Nguyen Thai Binh, CEO of Dong Tay Land, also mentioned that preliminary statistics from some developers show that Northern customers accounted for about 20% of total transactions in the South in the first half of this year, double the same period last year. By the end of Q3/2025, this ratio reached 30%, nearly matching the peak period of 2016-2020.
Thus, the Southern region attracts capital due to its price levels remaining stable over the past three years, creating growth potential and attractive profit margins for investors. Some outlying areas of former Ho Chi Minh City, including merged localities, have prices 30-40% lower than Hanoi, while infrastructure connectivity and urbanization rates are increasing rapidly.
He cited that with 2-4 billion VND, in Hanoi, one can only buy a 1-bedroom or 1+1 apartment, whereas in Ho Chi Minh City, investors have more diverse options, from apartments to individual houses.
Notably, the prices of some newly launched projects in the outskirts of Ho Chi Minh City are currently only 2/3 of those in Hanoi’s suburban areas, making the price increase potential in the medium and long term more attractive.
Southern Real Estate Holds Great Potential
Speaking at the seminar “Southern Capital Flow: Sustainable Appeal of Central Ho Chi Minh City Real Estate,” Mr. Vu Cuong Quyet, CEO of Dat Xanh Northern Region, stated that Ho Chi Minh City is a highly potential investment destination at this time.
Specifically, according to him, currently, compared to Hanoi, central Ho Chi Minh City real estate is priced similarly or lower. Even real estate outside the city’s ring road in Ho Chi Minh City is much cheaper than in Hanoi.
Ho Chi Minh City and some Southern provinces still hold great development potential.
A crucial factor driving growth is infrastructure. Over the past 10 years, Ho Chi Minh City’s infrastructure has been relatively weak. However, in the past two years, infrastructure in Ho Chi Minh City and the Southeastern provinces has been accelerated. It’s predicted that in the next two years, Ho Chi Minh City’s ring roads will be rapidly completed, especially the metro system, creating a significant boost.
Mr. Quyet cited the appeal of the Southern capital flow in projects like The Privé by Dat Xanh Group in Thu Duc (Ho Chi Minh City) or Zumi City (Long Hung, Dong Nai), Vinhomes Can Gio (Ho Chi Minh City)… These projects are becoming prominent choices for Hanoi investors seeking assets in the South.
Also commenting on the potential of the Ho Chi Minh City real estate market, Mr. Vu Quoc Viet Nam, Deputy CEO of Dat Xanh Group, believes that real estate prices in Ho Chi Minh City will continue to rise in central areas due to apartment prices in Ho Chi Minh City being higher than Hanoi before 2022, but since 2023, Hanoi real estate prices have surpassed Ho Chi Minh City.
Therefore, in the coming period, when Ho Chi Minh City completes its infrastructure, the growth potential will be enormous, similar to Hanoi in recent years.
Additionally, after the merger, Ho Chi Minh City became a megacity accounting for nearly 24% of GDP, equivalent to 1/4 of the country. With this scale, Ho Chi Minh City real estate is forecast to grow strongly in the coming years, driven by infrastructure and social factors.
Specifically, Ho Chi Minh City is currently and will soon have many major infrastructure projects such as Long Thanh International Airport; the Ho Chi Minh City – Long Thanh Expressway expanded from 4 to 10 lanes; the An Phu intersection, one of the largest in Vietnam; and various metro lines…
“With the synchronized infrastructure investment in the coming years, I believe that in just 3-5 years, real estate prices in Ho Chi Minh City will significantly change, opening up great opportunities for investors to seize,” Mr. Vu Quoc Viet Nam emphasized.
Meanwhile, according to the Vietnam Real Estate Brokerage Association, the capital flow from Hanoi investors to Ho Chi Minh City and its surrounding areas is not just for hunting cheap prices but also to diversify investment portfolios, optimize actual exploitation value, and improve capital efficiency.
Compared to Hanoi, the Ho Chi Minh City real estate market has clearer segmentation, with luxury apartments, complete legal status, prime locations, luxurious living spaces, and high-end amenities.
“This product line is suitable for investors with strong financial capabilities, seeking long-term asset accumulation, as it offers dual profitability—both long-term price appreciation potential and effective rental exploitation with better returns than Hanoi,” the VARS report states.
Another important factor enhancing investment appeal is the infrastructure development policy and regional planning momentum after the administrative merger of the new Ho Chi Minh City. Many new projects are now closely aligned with metro lines, ring roads, and key traffic axes, enhancing inter-regional connectivity and future asset value, particularly attracting Hanoi investors.
However, investors need to carefully select segments, assess financial capabilities, and prioritize long-term strategies (rather than expecting quick profits) to ensure safety and effectiveness in a restructuring market.
Climate Change Reshaping Residential Preferences
In 2025, heavy rainfall and rising tides are posing significant challenges for Ho Chi Minh City, necessitating long-term adaptation strategies. This new reality is compelling homebuyers to reevaluate their criteria when choosing a place to live.
What Dialogue is Hanoi About to Initiate with Citizens Regarding Social Housing?
On December 3rd, Hanoi will host a dialogue session with residents to address and resolve challenges related to purchasing social housing.
Seize New Profit Opportunities as Land Plots Re-Enter the Race
The land market is presenting a rare opportunity with its current soft entry prices, coupled with impending infrastructure developments and planning advancements. In areas where infrastructure is well-defined and favorable policies are in place, investors can position themselves early to capitalize on the upcoming growth cycle.
Thousands Apply for Social Housing, but What Are the Alternatives for Those Who Miss Out?
In recent years, several social housing projects (NƠXH) have seen a surge in applications, far exceeding the number of available units. This has left many prospective buyers facing the prospect of missing out after the selection process. However, for those who were unable to secure a home, there is still hope. A wave of new NƠXH projects in Hanoi is set to launch, with applications opening from late 2025 and early 2026, offering another chance to own a social housing unit.
A Closer Look at the Iconic Headquarters of Once-Prominent Businesses Leaving Hanoi’s City Center
At the behest of Hanoi’s People’s Committee, 51 industrial production facilities and 15 agency headquarters are slated to relocate outside the city center. Among them are prominent enterprises occupying prime real estate, alongside historically significant landmarks such as the Gia Lam Railway Factory and the Hanoi Beer Factory.
