According to the latest report from the Ministry of Construction of Vietnam, the real estate market in Vietnam, especially the apartment market, will see a significant price increase in 2024. Despite some apartments in Hanoi being nearly ten years old, the price still reaches 90 million Vietnamese dong per square meter (approximately 25,000 RMB).
The report indicates that the transaction volume of apartments and residential housing in Vietnam in 2024 was 125,545 units, a decrease of 1.5% year-on-year. However, the market transaction volume in the fourth quarter was 25,409 units, down 33.8% from the third quarter and nearly 8% year-on-year.
Despite the decline in transaction volume, the apartment market showed a strong trend of inventory contraction. In the fourth quarter, the inventory of apartments dropped to only 1,072 units, while the inventory of residential housing was 11,218 units, and the inventory of plots was 4,768.
Among these three types of real estate, the apartment inventory saw the largest decrease.
It is particularly noteworthy that apartment prices in major Vietnamese cities continue to rise. In 2024, apartment prices in Hanoi increased by about 40% to 50% year-on-year. In some projects and areas, the price increase was even more significant.
Apartment prices in Ho Chi Minh City also rose by 20% to 30%. Other cities such as Da Nang and Can Tho also showed higher increases in apartment prices.
The Vietnam Association of Real Estate Brokers (VARS) expects that apartment prices will remain high in 2025. The supply of new apartments is mainly concentrated in suburban metropolitan areas, and most are high-end and luxury market products.
The supply in the ordinary market still relies on affordable housing.
Experts from VARS indicate that the apartment market will dominate the real estate market in 2025, and the transaction volume of second-hand apartments is expected to decrease due to transaction prices being far higher than the actual market value.
According to predictions from the Vietnam Institute of Building Economics, the supply of commercial housing will increase in 2025, although it will mainly be concentrated in the mid-to-high-end market segments. The transaction volume of the real estate market in 2025 is expected to grow by 8% to 10% compared to 2024.
Experts from the institute believe that the housing loan interest rates of Vietnamese commercial banks are at a reasonable level, which has a positive impact on the real estate market. Additionally, Vietnam is promoting key transportation infrastructure projects, which will further support the development of local housing markets.
