Real estate market shows promising recovery amid stable macroeconomic context

REAL ESTATE MARKET SHOWS PROMISING RECOVERY AMID STABLE MACROECONOMIC CONDITIONS

THE REAL ESTATE SECTOR’S STRONG REBOUND REFLECTS BROADER ECONOMIC OPTIMISM
The Vietnamese real estate market is experiencing a clear recovery, marked by surging interest and robust capital inflows. This resurgence is not merely a short term trend but lays the foundation for a sustainable growth cycle, driven by the country’s stable macroeconomic performance.

MACROECONOMIC STABILITY FUELS REAL ESTATE GROWTH
Vietnam’s economy in the first seven months of 2025 has outperformed the same period last year across key indicators, positively impacting the real estate sector. According to the General Statistics Office and the State Bank of Vietnam, GDP grew by 7.96% in Q2, foreign direct investment (FDI) registrations reached $13.6 billion (an 8.4% increase), and total retail sales of goods and services hit VND 3,993 trillion (a 9.3% rise). These figures highlight Vietnam’s economic resilience and its appeal as a global investment destination, bolstered by open policies and effective inflation control.

In this favorable environment, the real estate market is thriving. Nearly 3,000 new real estate enterprises were established—a 7% increase—while 2,939 previously inactive firms resumed operations, marking a 51% rise. Temporary business suspensions also declined by 2%, signaling renewed confidence among investors. FDI in real estate surged to over $4.8 billion in the first half of 2025, nearly 2.4 times higher than in 2024, while bank credit for the sector expanded by 20–30%, triple the system wide growth rate. These capital flows not only revitalize the market but also underscore Vietnam’s strong appeal to foreign investors amid global economic uncertainty.

Data from PropertyGuru Vietnam further confirms this upward trend. In July 2025, interest in real estate sales rose by 13%, and rental demand increased by 15% compared to June. Nationwide, overall interest grew by an average of 15%, with established areas in Hanoi up by 11% and emerging districts in Ho Chi Minh City seeing a 13% rise. Key drivers include developers accelerating sales ahead of the Lunar New Year and major infrastructure projects—such as the Ring Road 3 and high speed rail—being inaugurated or launched to commemorate the 80th National Day. These developments have stimulated demand and supported steady price increases, with land values up 44% and apartment prices rising 42% compared to Q1 2024. Rental property interest also grew by 9–21%, though prices remained stable except for street front houses, which saw a 7% increase. While new listings grew modestly by 1%, overall platform engagement surged by 12% year over year, indicating a shift from stagnation to dynamic activity.

POSITIVE SIGNALS FROM KEY MARKETS
A closer look at major markets reveals distinct recovery patterns. In HANOI , demand for both sales and rentals increased by 10% compared to June 2025, despite a slight decline in new listings. Standalone houses and apartments led the growth, rising by 13% and 12%, respectively, reflecting genuine demand from the middle class. Other segments, such as street front properties and villas, saw modest gains of 3–6%, while project land interest dropped by 4%, suggesting a shift toward practical needs over speculation. In the rental sector, demand for offices and houses surged by 19% and 15%, while other categories grew by 4–11%. These trends affirm Hanoi’s role as an economic hub, where stable housing and workspace demand are shaping the market.

In HO CHI MINH CITY , real estate sales volume rose by 11%, with rental demand for offices and apartments jumping by 24% and 22%, respectively. Apartments and standalone houses remained the most sought after, increasing by 13% and 11%, while other property types saw growth of 6–17%. According to Mr. Dinh Minh Tuan, Regional Director for Southern Vietnam at PropertyGuru, this recovery stems from both macro and micro factors: project interest rose by 10–15%, high end segments showed strong liquidity, and supply improved. Infrastructure developments—such as Ring Road 3 and high speed rail—alongside FDI inflows and public investment disbursement, have bolstered market confidence. The recovery is selective, prioritizing well connected areas with transparent legal frameworks.

EXPERTS WEIGH IN ON SUSTAINABLE GROWTH PROSPECTS
Mr. Le Dinh Chung, a member of the Vietnam Association of Realtors (VARS), notes that the real estate market has seen a clear recovery in supply. In Q2 2025, over 36,000 new residential units entered the market—2.5 times more than the previous quarter and a 90% increase year over year. These developments are not coincidental but result from synchronized macroeconomic policies and sector specific reforms. Ho Chi Minh City’s upcoming administrative expansion to include Binh Duong and Ba Ria Vung Tau provinces will unlock new land reserves, particularly for affordable housing, demonstrating tangible progress.

However, experts caution against the risks of speculative price inflation if capital flows are not tightly regulated. Amid robust macroeconomic conditions, many believe Vietnam’s real estate market is entering a phase of sustainable growth. To maintain this trajectory, supportive policies—such as credit controls, legal transparency, and synchronized infrastructure development—are essential. If managed well, real estate can drive economic growth while addressing societal housing needs. Conversely, unchecked speculation could reignite bubble risks.

Investors are advised to focus on fundamental value, while the government must accelerate reforms to ensure a healthy, stable market that contributes to Vietnam’s broader economic goals.