Real estate in 2025 will grow stronger than in 2024

Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association (VNREA), said that although the real estate market still has limitations, it is still on a good development trend, promoting the market to continue to grow more strongly than in 2024.

Vice President of Real Estate Association: Real estate in 2025 will grow stronger than in 2024

Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association (VNREA), said that although the real estate market still has limitations, it is still on a good development trend, promoting the market to continue to grow more strongly than in 2024.

The real estate market is a place that attracts a huge amount of investment capital, but when it stagnates, it is also a place where a lot of capital is stagnant. The development of this market plays an important role in the overall development of the entire economy.

Within the framework of the workshop "Investment 2025: Decoding variables - Identifying opportunities" organized by Investment Newspaper on December 12, 2024, Mr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association (VNREA), President of Vietnam Real Estate Brokers Association, had some perspectives on the real estate market prospects in 2025.

6 keys to boost the real estate market

Talking about the operation and prospects of the real estate market, Mr. Nguyen Van Dinh pointed out 6 groups of factors to note, including: Institutions; Macroeconomics; Planning and infrastructure system; Capital - finance - credit; Market, supply and demand, price fluctuations and Information system.

First of all, in terms of the macro economy, Mr. Dinh predicted that 2025 will be a year entering a new cycle, a new era. “There may be warnings and concerns, but I realize that the more difficult and challenging Vietnam is, the more flexible and effective the Government's management becomes, and we have great confidence in the Government's management. Therefore, in terms of the macro economy, I believe that in 2025, we will maintain the results we have achieved and continue to implement in 2024,” the Vice President of VNREA emphasized.

In terms of institutions, we have new laws. This can be considered a period when Vietnam has improved institutional quality and is aiming to synchronize all contents of the laws. There has been 1 law amending 4 laws since the end of 2023, early 2024 and currently 1 law amending 8 laws with pending issues. Our country is also streamlining the apparatus, improving the efficiency of state management. Therefore, this expert believes that the institutions in 2025 will receive even better quality, positively affecting economic activities in general, including real estate market activities in particular.

Regarding urban planning and infrastructure, the country is no longer in the situation of "developing wherever is strong" but 63 provinces and cities have announced the general planning systems approved by the Government in a synchronous manner to serve as a basis for oriented, targeted, and unified activities nationwide. This is a very important factor for the real estate market to develop as well as other factors of the economy . In addition, in terms of infrastructure, the urbanization rate is also forecasted to have a better growth trend in 2025.

In terms of finance, the Government's policies are very flexible and agile in terms of currency, fiscal policy, and even in areas such as the stock market and corporate bonds. In particular, corporate bond activities were loosened for a while and seemed to be likely to collapse in 2022 - 2023, but the Government has still handled it and is currently continuing to stimulate the development of the bond market. This is also a way for the real estate market to have the opportunity to develop well in the following years.

Mr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association (VNREA), President of Vietnam Real Estate Brokers Association.
Photo: Chi Cuong

Regarding the market, when the mechanism is removed, currently in the real estate market, the optimistic psychology has returned, it may not be as normal as the years before the pandemic, but in 2024 there have been many changes when the market in the following quarter always increases much stronger than the previous quarter.

Regarding the issue of price surges, Mr. Nguyen Van Dinh said that the reason can be explained by the fact that demand in the market is still very high and has been suppressed for a long time. Demand does not only stop at housing demand but also investment demand is very strong. “Real estate is an investment channel that we consider to be an attractive investment channel and the first choice of many investors. When this demand is suppressed for a long time due to epidemics and crises, and there are no goods, this is the time for an outbreak when projects are launched on the market. Low supply, high demand and suppression at the same time have pushed prices up,” Mr. Dinh explained.

Overall, Mr. Dinh said that the real estate market still has limitations but is still on a good development trend, promoting the market to continue to grow more strongly in 2025 than in 2024. In particular, many solutions to remove obstacles in real estate activities are being proposed, creating a stronger push for projects and the market. Supply increases, reducing pressure on the supply-demand balance, prices will also be adjusted better. At the same time, the state is also regulating market activities more effectively.

In terms of information systems, the Government is aiming at digital management and information provision. In the new laws, especially the Land Law, the Real Estate Business Law, and the Housing Law, great attention is paid to the issue of transparency of information systems and the development of index systems to measure fluctuations in the market. In the coming year, with Project 06 and digital technology activities, market control and provision of forecasting information data will be more active.

“The above 6 issues are all being improved in quality, so the real estate market is forecast to grow well in 2025,” Mr. Dinh expected.

Wondering about the paradox of real estate prices

Despite his positive outlook for the market in 2025, Mr. Dinh still has concerns about the current real estate price paradox.

The Vice President of VNREA said that real estate prices are currently increasing and the pressure to continue increasing is still present due to the price structure related to land tax.

“According to the new spirit of applying market prices, localities are building land price lists. However, I think that this price list will create a new, very high cost level, which can have a negative impact on the market, making it difficult to reduce the price level. Now people are asking for prices to increase, everywhere we see businesses complaining that land prices are 2-3 times higher than before, and land-related costs are also adjusted higher,” Mr. Dinh shared.

If the price level does not have a method of adjustment, when the difficulties in development are resolved, the supply will increase, the pressure of supply and demand will be released, which will help reduce real estate prices, but the cost will still be high, making it impossible for prices to decrease. This leads to the supply and demand not meeting. Real estate projects, especially luxury and high-end projects, will stagnate in absorption, causing the whole market to stagnate.

“This is a paradox, and I hope that the Government needs to study and adjust the land use fee and land rental fee to an appropriate level, only then will it be truly suitable to stimulate the real estate market better,” Mr. Nguyen Van Dinh proposed.

Source: https://baodautu.vn/batdongsan/pho-chu-tich-hiep-hoi-bat-dong-san-bat-dong-san-2025-se-tang-truong-manh-me-hon-nam-2024-d232315.html