Apartment Prices Continue to Rise
According to experts, apartments will continue to see strong growth and will be the segment attracting capital flows until the end of the year.
Ms. Nguyen Hoai An, Senior Director of CBRE Vietnam, predicts that Hanoi apartment prices will continue to rise in both the primary and secondary markets until 2026. This growth is expected to exceed 20%/year – a record-breaking figure. From 2026 onwards, the growth rate may stabilize as a new price level would have been established. Meanwhile, Ho Chi Minh City records a stable growth rate of 5-6%/year.
Mr. Le Dinh Chung, CEO of SGO Homes, also believes that Hanoi apartments will continue their upward trend with an average increase of 5-10% until the end of this year.
This upward trend will continue into the next year as, in the short term, there is no significant change in the supply of Hanoi apartments.
Apartment prices are forecast to keep rising. (Illustrative image: Cong Hieu)
Sharing the same view, Mr. Pham Duc Toan, CEO of EZ Property, also stated that, in the second half of this year, apartments will continue to lead in liquidity compared to land, townhouses, or resort real estate.
Due to the significant gap between supply and demand for this type of property, apartment prices, especially for new projects, are unlikely to decrease in the coming time.
For investors, experts advise that due to the good price margin, those who are adventurous and have abundant financial resources can still invest in this segment from now until the end of the year. However, it is not recommended to use financial leverage or take the risk of borrowing money for investment.
Outskirt Land Attracts Buyers
Another real estate segment that experts predict will perform positively is outskirt land.
Mr. Le Dinh Chung believes that year-end capital flows will tend to shift and seek new segments and markets, and outskirt land will be the choice of many.
Outskirt land is expected to be a popular choice among buyers towards the year-end. (Illustrative image)
Observing the market trends recently, Mr. Chung affirmed that this shifting trend is gradually taking shape and is quite clear. The group of customers with a financial capacity of VND 5-10 billion has started to look for new investment opportunities as they have almost no chance of investing in Hanoi when apartment, villa, and townhouse prices are too high.
Since May, satellite and outskirt provinces such as Hung Yen, Bac Ninh, Bac Giang, Hai Duong, Phu Tho, and Hoa Binh have become the focus of investors. With these outskirt land products in the above provinces, the market is witnessing a recovery in the segment of products priced below VND 10 billion.
Also, according to Mr. Chung, recently, there has been a “fever” in land prices in the outskirts of Hanoi, with an increase of 10-20% compared to the beginning of the year. The market has formed a generation of professional and well-versed investors. Their preference is for products that have a house on the land, along with essential utilities and services, meaning they value the sustainability of the product.
Sharing the same view, Mr. Dinh Minh Tuan – Director of Property Guru Vietnam – stated that the number of investors with ready capital to buy outskirt land is increasing. When demand becomes more apparent, prices will rise. Many brokerage firms have also confirmed that land prices have been adjusted since March this year.
Mr. Tuan explained that the early recovery of the land market is driven by two factors: the wave of anticipation of changes in new laws and the saturation of other investment channels.
The revised Law on Real Estate Business and the Law on Housing will significantly impact the land market from 2024 onwards. The strict regulations on land subdivision are a hot issue, and it is predicted that the supply of subdivided land will decrease sharply after 2025. However, the demand for land is unlikely to decrease in the long term as the Vietnamese still favor this type of real estate.
When supply is low and demand is high, land prices will rise. Many investors want to seize this trend and will start hunting for land before the new laws take effect.
Essentially, land is a product that is easy to buy, transfer, and own with a stable and safe asset value, good profitability, and, most importantly, a “soft” price compared to 2-3 years ago.
Land is also a type of real estate that any market participant can invest in due to its diversity in area, price, and location.
Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), also stated that recently, land in many outlying areas has become “hot” again.
As a result, many investors are rushing to “hunt” for land in localities with strong infrastructure development and rapid urbanization. Many areas have recorded a “sudden” increase in land transactions, especially for plots that have been subdivided.
“
The market has recorded some areas with “unfounded price increases.” Be extremely cautious to avoid forming “artificial” fevers, which can lead to unsafe situations, as the market is still in the process of recovering
”, warned Mr. Dinh.
Auction Land Heats Up Again
One segment that has been quite vibrant recently and is recommended by experts for investment is auction land in the provinces.
Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, analyzed that the price of auction land is quite soft, mainly from VND 2-3 billion, so it is easy to liquidate and suitable for many people’s financial conditions in the current context.
In addition, the outlying districts of Hanoi have the advantage of a large land fund and development potential. In the context of a rising market, they will not miss the “golden goose” of land auctions to increase local budget revenue.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, assessed that the land in the outskirts of big cities, localities with strong infrastructure development, and rapid urbanization is still considered a bargain and has room for growth in the future, so it continues to attract investors. Therefore, the appeal of auction land remains challenging to reduce.
This segment also wins the hearts of investors thanks to many factors, typically the psychology of favoring houses attached to the land, the need to accumulate safe assets, and the ability to increase profits from land is always high.
