VIETNAM’S REAL ESTATE MARKET: STRONG Q1 COMEBACK
31/05/2025
Vietnam’s real estate market showed renewed strength in the first quarter of 2025, with a broad uptick in project activity and transaction volumes suggesting a more confident stance from both developers and buyers. After a cautious 2024, new supply is accelerating, particularly in commercial housing, while sales of apartments, landed homes and plots are rising sharply. For further updates and professional insights on the investment potential of Vietnam real estate market, residential leasing and asset management services by Arcadia Consulting Vietnam, reach us at rs@arcadia-consult.com.vn
DEVELOPERS RE-ENGAGE, PROJECT PIPELINE EXPANDS
Commercial housing development picked up pace in Q1, with 14 projects reaching completion and delivering over 3,800 units which is up 40% from Q4 2024. More notably, new approvals surged. Authorities greenlit 26 commercial housing projects during the quarter, representing nearly 16,000 units, a 44% jump that signals a stronger forward pipeline.
Presales activity also gained traction: 59 projects, totaling more than 19,700 units, were deemed eligible for future home sales, a 55% increase over the previous quarter. The national construction pipeline now includes 994 active residential projects, covering close to 400,000 units.
LAND PLOT DEVELOPMENT GAINS GROUND
Land infrastructure projects, which allow individual buyers to build homes on subdivided lots, are also regaining momentum. Q1 saw 17 such projects completed, delivering over 4,400 lots. An additional 490 are under development, representing more than 19,000 lots in total. Eleven new projects were licensed in the quarter, adding another 3,400 to the pipeline. This subsegment, often overlooked in broader market commentary, is increasingly viewed as a bellwether for grassroots demand, particularly in second-tier provinces.
TRANSACTIONS CLIMB, LED BY APARTMENTS AND LAND PLOTS
After months of sluggish activity, the market is seeing a measurable pickup in actual sales. More than 33,000 apartment and landed home transactions were recorded in Q1, a 32% increase over Q4. Land plot deals also climbed, with over 101,000 successful transactions logged, up 16%. While demand remains uneven across regions, analysts point to a shift in sentiment as borrowing conditions stabilize and price expectations adjust.
PRICES EDGE HIGHER, BUT GAINS REMAIN PATCHY
Price growth continued across most asset classes, though the pace and distribution remain highly localized. Urban centers in four major cities Hanoi, Ho Chi Minh City, Da Nang and Hai Phong are seeing firmer prices for high-rise units, while peripheral markets are stabilizing after a correction in late 2023. In many cases, developers are offering fewer discounts, signaling more pricing power.
According to the Ministry of Construction, the market showed little movement across segments: affordable units stayed below VND 45 million per square meter, mid-range stock hovered between VND 45-70 million, and high-end inventory remained in the VND 70-100+ million range. Ultra-luxury listings, still rare, are now pushing toward VND 200 million per square meter in select projects. The Ministry, drawing on local surveys, noted a broad cooling in momentum. In Hanoi, prices were largely stable, with a handful of well-located developments edging up 5% from the previous quarter.
In Hanoi, pricing held across most segments. The Pavilion listed between VND 50-64 million per square meter, while The Sakura at Vinhomes Smart City ranged from VND 60-80 million. The Canopy Residences posted prices at VND 65-73 million, and Vinhomes D’Capitale in Cau Giay District climbed as high as VND 110 million. Thong Nhat Complex in Thanh Xuan District was offered at VND 70-82 million, while Eco Lake View in Hoang Mai District held in the VND 58-70 million range.
Ho Chi Minh City showed similar signs of stability. Most listings were flat quarter-over-quarter, though a handful of projects saw mild gains of 3-4%. Thu Thiem Green House in District 2 was quoted at VND 27-31 million per square meter, while Green River in District 8 ranged from VND 35-45 million. Diamond Centery continued to attract premium buyers at VND 61-75 million. Eco Green Saigon in District 7 held between VND 65-83 million. At Vinhomes Grand Park, Glory Heights and The Beverly Solari traded between VND 45-67 million.
In Hai Phong, Hoang Huy Commerce remained affordable at VND 32-42 million, while Diamond Crown pushed higher, listing at VND 46-68 million. In Da Nang, The Ori Garden continued to serve the entry-level market, with pricing from VND 20-28 million per square meter.
Meanwhile, prices for villas and townhouses in Hanoi continued to climb in the first quarter, extending a steady upward trend from late 2024. Across key residential projects, asking prices rose roughly 5-10% from the previous quarter. Most listings now fall between VND 100-200 million per square meter, though top-tier developments are well above that range. At Vinhomes Riverside in Long Bien, sellers are quoting between VND 240–450 million per square meter. Rue De Charme in Thanh Tri is listed from VND 271-390 million. In My Dinh Song Da (Sudico), prices have reached as high as VND 550 million.
Other notable projects are also commanding strong valuations: Louis City in Nam Tu Liem is priced at VND 225-420 million; Van Quan in Ha Dong at VND 230-390 million; and Phung Khoang New Urban Area at VND 190-265 million. Dai Mo and Trung Van – Vinaconex 3 are also seeing firm pricing, with listings between VND 155-340 million and VND 225-300 million, respectively.
At the same time, prices for villas and townhouses in several regional markets continued to inch higher, suggesting demand is holding up in select projects outside the major metros. In Da Nang, Phuc Loc Vien in Son Tra is now asking VND 70-83 million per square meter. Nearby, Regal Pavilion in Hai Chau is priced between VND 103-145 million, positioning it among the city’s more premium offerings.
Just east of Hanoi, The Crown at Vinhomes Ocean Park 3 in Hung Yen is listed at VND 120-168 million. In Binh Duong, The Orchard Sycamore is trading between VND 92-105 million. While sentiment remains mixed, the upward movement in these areas points to steady end-user and investor interest, particularly in branded, well-located projects with limited new supply.
SOCIAL HOUSING AMBITIONS FACE EXECUTION HURDLES
The government’s flagship initiative to build one million social housing units is making headway but not without challenges. As of Q1, 679 projects have been launched, targeting over 623,000 units. Of those, 108 projects (73,000 units) are complete, while 155 have broken ground, adding another 132,000 units to the under-construction count.
Planning authorities have allocated over 1,300 locations nationwide, covering more than 9,700 hectares, specifically for social housing. Still, execution remains uneven. Twenty-two provinces are on track to meet their targets, accounting for nearly 48,000 units. But another 22 are lagging behind, and 19 provinces have yet to initiate a single project.
VIETNAM TARGETS IDLE REAL ESTATE IN TAX CRACKDOWN
Vietnam is moving quickly to draft a new property tax targeting vacant homes and idle land, a long-avoided reform that could reshape one of Southeast Asia’s most speculative real estate markets.
The Ministry of Finance is under pressure to finalize a framework that also taxes the gap between state-assessed and market land prices, a loophole that’s long fueled off-the-books deals. The aim: reduce hoarding, cool price inflation, and bring clarity to a sector where transparency has lagged behind growth. Authorities are also preparing tighter rules for questionable transactions and accelerating the digital overhaul of land and housing data, a key step toward modern enforcement. The Ministry of Finance is coordinating with the Ministry of Construction to fast track implementation once legislation is approved.
Meanwhile, the government plans to launch a National Housing Development Fund by June. The fund will direct capital toward affordable housing, a politically urgent move as homeownership drifts further out of reach for Vietnam’s middle and lower-income buyers.