Surge in Investment Capital Dominates the Real Estate Market

10% of Transactions Involve Bank Loans

According to a report by the Vietnam Real Estate Market Research Institute (VARS IRE), in 2025, the market recorded over 128,000 new housing units, an 88% increase compared to 2024 and the highest level in the 2019–2025 period. The primary driver was the apartment segment, with more than 80,000 new units launched, doubling the previous year’s figure.

Notably, the supply structure is shifting significantly toward the high-end segment. Approximately 25% of newly launched apartments, equivalent to over 20,000 units, are priced above 100 million VND/m², nearly ten times higher than the same period in 2024.

In Hanoi and Ho Chi Minh City (formerly), approximately 85% of new apartment supply is priced above 80 million VND/m², highlighting the dominance of high-end and ultra-luxury products amid the continued absence of affordable commercial housing.

Regionally, the supply structure continues to improve toward diversification. The Northern region leads with 48% of the national supply. The Southern region accounts for 37%, thanks to numerous projects launched after a prolonged slowdown. The Central region remains stable at 15%.

Mr. Lê Đình Chung, Vice Chairman of VARS IRE, stated that the average absorption rate in 2025 was approximately 68% of the total new supply, equivalent to nearly 88,000 successful transactions. In the first three quarters of 2025, many high-priced projects maintained positive absorption rates due to increased investment and real demand. However, in Q4/2025, this rate began to decline as new inventory surged and rising interest rates made investors more cautious.

“Real demand remains crucial, but the market’s primary driver is still investment. Over 75% of transactions come from second-home buyers or more, with about 10% involving short-term financial leverage,” said Mr. Chung.

Secondary Housing Market Surges

According to Mr. Chung, residential real estate prices continued to rise across most markets. Low-rise housing and land plots saw new selling prices increase by 5–10%. In the secondary market, low-rise housing prices rose by approximately 20% year-on-year. Transactions were concentrated in projects priced between 100–200 million VND/m², located in established urban areas with residents and synchronized infrastructure. Conversely, many villas and townhouses, despite significant price increases, faced limited liquidity due to incomplete projects, poor connectivity, and lagging regional infrastructure.

“The apartment segment remains a market hotspot, with new selling prices in major cities surging as new projects position themselves in the high-end segment amid rising land-related costs,” noted Mr. Chung.

Specifically, in Hanoi, new apartment prices averaged around 100 million VND/m², a 40% increase from 2024. In Ho Chi Minh City (formerly), new selling prices averaged 111 million VND/m², up 23% year-on-year, with numerous luxury projects launched at year-end. In Da Nang, new apartment prices averaged over 83 million VND/m², a 14% increase from 2024.

In the secondary market, Hanoi saw rapid price increases over a short period. Many areas recorded jumps of hundreds of millions to billions of VND per unit, but the pace slowed by year-end, with some investors cutting losses after FOMO-driven purchases during the peak. However, prices in central areas remained stable.

In Da Nang, secondary prices rose sharply due to increased investment demand, particularly from Hanoi investors, but liquidity slowed by year-end, with prices stabilizing. In Ho Chi Minh City, apartment prices continued to accelerate, concentrated in areas with major infrastructure projects underway or planned.

In the tourism and resort real estate segment, the market showed a selective recovery. Supply quadrupled compared to 2024, with 55% absorption, but transactions were primarily in large-scale coastal urban and resort projects developed by reputable investors. Multi-functional coastal urban models, serving both residential and long-term investment needs, are gradually replacing traditional resort models.