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Written by Dustin Trung Nguyen, Head of IQI VietnamSegment 5-10 billion VND: Demand in Ho Chi Minh City is almost twice as high as in Hanoi.Segment 1-3 billion VND: Ho Chi Minh City leads, reflecting the strong appeal of affordable housing in theSouthern market.Segment 2-3 billion VND: Hanoi dominates, thanks to apartment developments that align with the financialcapabilities of most buyers.Types of Real Estate in DemandHo Chi Minh City: Private houses are the most sought-after, particularly in areas such as An Phu (District 2), Phu Huu (District 9), Thao Dien (District 2), and District 7.Hanoi: Apartments lead in search demand, notably in Nam Tu Liem (Tay Mo), Cau Giay (Trung Hoa), and satellite areas such as Gia Lam, Hoang Mai, and Ha Dong.Neighboring Provinces: Land for sale dominates, catering to investment needs and suburban infrastructure development.Rental Market: A Consistent TrendThe rental real estate market remains stable across regions. The most in-demand rental properties include apartments, boarding houses, rented rooms, and private houses, reflecting steady demand among residents and workers.Project Supply & Market RecoverySlight Recovery from Late 2024After a prolonged stagnation, real estate supply has begun to recover:Hanoi: Nearly 10 new projects were launched, including Lumi Hanoi, Imperia Sola Park, The Ninety Complex, Vinhomes Co Loa, and Grand Sunlake.Ho Chi Minh City: The market gained momentum towards the end of the year, with new developments such as Eaton Park, The Opus One, Fiato Uptown, Lavida Plus, Khai Hoan Prime, and King Crown InfinityMarket Overview and ForecastIn 2023, total market supply hit its lowest level in the past decade. However, from Q3 2024 onwards, new projects have re-entered the market, particularly in HCMC, which is experiencing a stronger recovery than Hanoi. With stable demand in the mid-range and high-end price segments, along with a resurgence in supply, the Vietnamese real estate market is expected to grow significantly in 2025, particularly in Ho Chi Minh City.The real estate revival in 2024 was fueled by growing homeownership demand and notable infrastructure improvements. These factors have accelerated transactions and investment activities, further strengthening the market.Commercial MarketChallenges in Hanoi’s Shophouse MarketMany shophouses in downtown Hanoi are being left vacant as shop owners struggle to stay afloat amid an e-commerce boom.Case Study:Thu Phuong, a store owner in Hanoi, recently vacated her 70-square-meter fashion store in Cau Giay District, after closing two other outlets earlier in the year.While revenue from her three stores once covered rent costs, declining sales forced her to terminate lease agreements.She is now shifting her business focus to online sales and looking for a smaller, lower-rent location in sidealleys.Declining Retail Demand & Rising VacanciesThe capital’s once-bustling fashion and restaurant streets are now lined with vacant storefronts, as landlords struggle to find tenants.Kim Ma Street: Over 40 stores have closed.Nguyen Thai Hoc Street: Faces a similar downturn, with an increasing number of empty commercial spacesMarket Insights:Duc Huy, a property broker with five years of experience, estimates that shophouse vacancies have risen by15-20% compared to last year.A five-story property on Kim Ma Street has remained vacant since August, even after landlords lowered rents by 10% from two years ago to VND 50 million (US$1,960) per month."A few years ago, landlords demanded high rents, and tenants were willing to pay. That is no longer the case." –Duc Huy, Property BrokerChanging Consumer Behavior & Investment ChallengesNguyen Chi Thanh, Vice Chairman of the Vietnam Association of Realtors, highlights that the shophouse segment is facing major challenges, as customers increasingly prefer shopping malls or online- Instead of investing in high-rent retail locations, businesses are shifting budgets toward online marketing,which attracts more customers.Key Drawbacks of Hanoi’s Shophouse Market:Limited Parking Spaces: Compared to shopping malls, most shophouses lack sufficient parking, making themless convenient for consumers.Declining Rental Profitability: According to Dinh Minh Tuan, Business Director at Batdongsan, shophouse rental yields remain at around 3% annually—unchanged since 2021.For more info on global insight. click here

Residential:Projects currently being implemented in Ho Chi Minh City and neighboring areas are still priced below VND50 million/m2.In 2024, the high-end and luxury housing segment will account for 80% of the new supply in the Ho Chi Minh City market. With increasingly limited land funds, affordable housing projects are moving to the outskirts of Ho Chi Minh City and neighboring provinces.3 luxury apartment projects of the 3 "big guys" Masterise Homes, Gamuda Land, Vinhomes in Thu Duc City (Eastern area of Ho Chi Minh City) make a dynamic point in the Eastern real estate market at the end of the year.Eaton Park phase 2 price rumor is 142 million VND/m2; Masteri Grand View is around 120-140 million VND/m2; Opus One price fluctuates around 72 - 85 million VND/m2.Located close to each other, Masterise Homes - Masteri Grand View project and Gamuda Land - Eaton Park are constantly being "compared" - better in price, amenities, location, and legality. Meanwhile, Opus One - Vinhome Grand Park is located far from the center of Ho Chi Minh City, thought to have a light price, but the announced price of nearly 100 million VND/m2 surprised many people.The East of Ho Chi Minh City is becoming the "hottest" battlefield of the luxury apartment market, where only investors with strong financial potential and long-term vision are able to enter the game.60% of sales & customers are interested in information related to Eco Retreat (opening time, products, opening route, investment potential)20% of sales & customers are interested in resort products, branded to Huas because of the reputation of the operatetion brand, they are curious about the brand of Hausa series of information about Sun Group resort projects are reaching to Sales & customers through word of mouthThe public investment market promotes the wave of the suburban real estate market at the beginning of the yearCommercial:Real estate around Long Thanh airport “heats up” at the end of the yearReal estate in Nhon Trach, Long Thanh (Dong Nai); Ba Ria - Vung Tau… continues to record positive signals at the end of the year, along with the urgent construction progress of a series of large-scale transport infrastructure projects being deployed in the area.The first commercial flight is expected to take off from Long Thanh airport on September 2, 2026. Therefore, the implementation of connecting projects such as Bien Hoa - Vung Tau expressway, Ho Chi Minh City Ring Road 3, Ben Luc - Long Thanh expressway and many other intra-provincial routes are being thoroughly implemented.Nhon Trach Bridge (a component project of Ho Chi Minh City Ring Road 3 project phase 1) has also joined two border spans.The FIATO Airport City apartment project of Thang Long Real Group at the front of Ton Duc Thang, Nhon Trach (Dong Nai) has recently continued to receive attention from buyers when a series of large infrastructure projects around the project are scheduled to be completedSome land and townhouse projects in Long Thanh (Dong Nai), Ba Ria - Vung Tau are also preparing to offer secondary sales to meet the demand that is expected to increase with the infrastructure wave.FOR MORE UPDATE NEWSLETTER, CLICK HERE!

Ba Ria land – this is a market that benefits greatly from the important infrastructure being deployed such as Bien Hoa-Vung Tau Expressway, Cai Mep Seaport, the greatest potential in this area is that the land will directly serve industrial parks, experts working at ports and airports. In the past 2 years, undeveloped land prices in this area have decreased by 28%, with an average price of 11-13 million VND/m2, however, prices have also recovered strongly from the bottom of about 20%.In the past 2 years, land prices in this area have decreased by about 8% compared to 2023 but are relatively stable in 2024, with an average price of 16 million to 18 million VND/m2.Game changer: Eco Retreat project, Vinhomes Duc Hoa project will be implemented in 2025 and will certainly have a new price much higher than the general level. Dong Nai land - a bustling coordinate with many large government projects being implemented such as Long Thanh Airport, Ben Luc Long Thanh Expressway, Ring Road 3, Bien Hoa Vung Tau Expressway. Potential revolves around housing needs for experts, workers working in industrial parks and Long Thanh International Airport.Ba Ria land – this is a market that benefits greatly from the important infrastructure being deployed such as Bien Hoa-Vung Tau Expressway, Cai Mep Seaport, the greatest potential in this area is that the land will directly serve industrial parks, experts working at ports and airports.In the past 2 years, undeveloped land prices in this area have decreased by 28%, with an average price of 11-13 million VND/m2, however, prices have also recovered strongly from the bottom of about 20%. In 2 years, land prices in this area have decreased by 14%, the average price up to this point fluctuates at 17-20 million/m2, prices have started to stop decreasing since September 2024.Game Changer: The Long Thanh Airport project is expected to complete in phase 1 in 2026, which can have a big impact not only on undeveloped land but also have a profound impact on many other segments and fieldsBinh Phuoc land: Compared to the suburban land markets, this is a market with a sharp decline in prices with a reduction rate of nearly 40% -50% and is currently still trading around 10 million/m2.Binh Duong land: This is a rare market that has maintained a price increase from 2019 to 2024, with increasingly complete regional infrastructure (My Phuoc Tan Van, expansion of National Highway 13), economic growth, industry and especially strong FDI absorption attracting the top 2 immigrants in the country. The average transaction price on the market fluctuates between 25-30 million/m2.With the increasing selling prices of central HCM projects, the trend of moving to suburban markets is inevitable, and with the land market almost frozen in the past 2 years, this could be the beginning of a recovery phase for a new cycle with a series of important infrastructures coming into operation in 2026.Discover the latest land market trends in Vietnam—read the full article and uncover investment opportunities for 2024Data extracted in January 2025Read more

This article is contributed by Dustin Trung Nguyen, Country Head of IQI VietnamThe cost of renting rooms in Ho Chi Minh City has risen by 20% in the first 10 months, reaching a minimum of VND3 million (US$118) per month, according to a report. This marks the largest increase in the past two years, based on data from property listing platform Nha Tot, which excludes "sleep boxes" and cage homes.As of last month, average rents had reached VND3.8 million, with some properties commanding up to VND6.6 million. Price hikes have been observed in most districts, from downtown areas to the suburbs. Despite the steep increases, demand for rooms and apartments in HCMC remains high. Inquiries for such accommodations in the third quarter increased by 16% to 60% compared to the previous quarter. The highest demand was recorded in Thu Duc City, home to many universities. Another property listing platform, Batdongsan, confirmed this trend, reporting a 38% year-on-year increase in inquiries for rooms in HCMC in October. Nguyen Hoang Uyen, CEO of Nha Tot, attributed the price hikes to limited supply. For example, in District 7, demand surged by 59%, but no new supply was recorded. She noted that many students are struggling to find affordable housing near their universities. "The price hikes are a major concern for students, especially those coming from other localities," she said. Dinh Minh Tuan, director of Batdongsan’s southern business division, explained that rising property prices in recent years have forced many prospective homebuyers to abandon their plans to purchase homes and opt for renting instead. This shift has increased rental rates for rooms. Additionally, authorities have tightened fire safety regulations, requiring landlords to make costly property upgrades. The average income of a Vietnamese worker in the first six months was VND7.5 million per month, a 7.4% year-on-year increase, according to the General Statistics Office.Stay updated on HCMC’s rental market trends—subscribe for expert insights and advice on navigating rising costs!read More