Comments on the "playground" of investors in 2025, Hanoi apartment prices have passed their peak, the most expensive social housing project in the capital, regulations on granting red books for land allocated for use for many years without planning... are the latest real estate news.
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| By the end of 2024, apartment prices in Hanoi and Ho Chi Minh City will be quite high. If you invest in apartments in these two cities for rent, the rental price compared to the purchase price is not really attractive, even though the demand for renting houses is high. (Photo: Gia Thanh) |
Investors' "playground" in 2025
Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac analyzed that by the end of 2024, apartment prices in Hanoi and Ho Chi Minh City will be quite high. If investing in apartments in these two cities for rent, the rental price compared to the purchase price is not really attractive, even though the demand for renting houses is high.
Meanwhile, the apartment market in the provinces has very reasonable rental and purchase prices.
Mr. Quyet assessed that the land segment in Hanoi and Ho Chi Minh City is quite expensive. However, the land in the satellite provinces of these two cities has not increased dramatically in recent times, only about 5-10%, so the price is still reasonable.
Therefore, the leaders of Dat Xanh Mien Bac believe that land in the provinces is still a good investment segment in 2025.
In addition, Mr. Quyet expects the resort real estate market in 2025 to have a good recovery when the number of foreign tourists to Vietnam in 2024 has reached more than 17 million. According to him, some resort real estate markets in Phu Quoc, Nha Trang, Quang Ninh, etc. will improve.
Meanwhile, townhouses in Hanoi and Ho Chi Minh City still have high prices; while rental demand has not changed dramatically.
“In 2025, I do not expect much from the townhouse segment in Hanoi and Ho Chi Minh City; but in the provinces, especially where there are many industrial parks, prices will not increase in 2024, so there will be more changes than in big cities,” said Mr. Quyet.
Investing in 2025, Mr. Quyet noted, investors should pay attention to the price factor, should not be influenced by the crowd effect and think that real estate prices always increase, even though high prices still continue to increase.
“With the prices in big cities, it will no longer be a “playground” for investors, but a “playground” for people with real housing needs and long-term investors. If you invest in short-term speculation in big cities, it will be very risky.
When investing, it is necessary to pay attention to the real estate segment that creates a sustainable cash flow in the future. At the same time, it is necessary to research real estate in industrial cities, especially provinces with large foreign investment capital such as Bac Ninh, Bac Giang, Hai Phong or Binh Duong, Long An, Dong Nai... However, more importantly, it is necessary to pay attention to legal issues, if you are greedy for cheapness and invest in projects that do not have enough legal documents, it will be very dangerous", Mr. Quyet warned.
Meanwhile, Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development JSC, commented that in 2025, the prices of low-rise and high-rise products in big cities like Hanoi will not increase dramatically as before. Secondary products will not have many price fluctuations, only primary products will increase due to increased input costs.
“In the last two months of last year, the market showed clear signs of cooling down when secondary products such as apartments had lower selling prices of 200-500 million VND, and low-rise houses also decreased. With this price reduction, the demand for investment in apartments and low-rise houses is no longer high. Professional investors will tend to move to provincial markets, with convenient traffic infrastructure connecting to Hanoi; industrial parks, and dense population,” Mr. Chung assessed.
According to the General Director of SGO Homes, land is still a segment that has great appeal to investors. In the short term of about 2-3 years, land is still the most effective investment channel.
Besides, the high-rise apartment segment in the provinces, with prices ranging from 2-3 billion VND, will also attract investors.
The absorption rate of newly launched projects will slow down.
According to Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, housing projects opened for sale in 2025 will still receive attention, be transacted, and be well absorbed, but the absorption rate is likely to slow down. The apartment segment will continue to dominate market liquidity.
However, according to Mr. Dinh, apartment liquidity will still be concentrated in large urban projects. Housing demand, especially investment demand, will continue to shift to suburban areas and tier 2 and tier 3 provinces and cities, where prices are lower and there is more room for growth in the future.
The market overview shows that after a period of "hot" growth, apartments - the most preferred product in Hanoi - have tended to decrease slightly in price since the end of 2024 until now. Purchasing power has slowed down somewhat, and selling prices have also decreased slightly for homeowners who need to sell quickly. Those who invested in apartments before have accepted to reduce their interest rates to sell because the profit they earned was quite high after the period when apartment prices increased by several dozen percent.
Currently, apartment prices in Hanoi tend to stay the same or decrease slightly compared to the peak period. The transaction volume has also decreased significantly compared to November 2024 and earlier. According to a survey by Batdongsan.com.vn, at the Vinhomes Smart City project, in the secondary market, in November 2024, the price of a studio apartment was commonly offered for sale from 2 - 2.2 billion VND/apartment, but from December 2024 to present, some homeowners need to sell urgently, the offering price only fluctuates from 1.98 - 2 billion VND/apartment...
Similarly, this phenomenon has also been recorded in some other projects. However, real estate brokers say that with this price, the homeowner is selling at a profit, not at a loss.
The supply of residential real estate in 2025 will continue to grow, about 10% compared to 2024; many projects have had their problems resolved and will be re-implemented in 2025; many projects also have plans to "launch" to take advantage of the market's recovery opportunities.
The real estate supply is expected to continue to be mainly contributed by large urban areas in the northern provinces and cities of major investors. Notably, the apartment segment, mainly the segment priced from 50 million VND/m2 and above, continues to lead the market.
Although supply is growing, it is still scarce compared to demand and because it mainly comes from large urban projects of large investors, the selling price is still "anchored" at a high level. Meanwhile, the secondary price level will also grow more slowly with a lower increase, from 7 - 10% compared to 2024.
The reason is because the current price level is quite high. The slowing growth in the market is also due to the fact that many old apartment products, lacking infrastructure and utilities, have transfer prices that are too high compared to their actual value.
The most expensive social housing project in Hanoi is expected to cost 25 million VND/m2
The selling price of social housing in Tan Trieu commune, Thanh Tri district (Hanoi) is tentatively estimated at 25 million VND/m2. If approved, this will be the highest social housing price ever in Hanoi.
The above price was just announced by the Hanoi Department of Construction after the project started construction late last year.
This project is invested by a consortium of Urban Infrastructure Development Investment Corporation (UDIC), Hanoi Electricity and Water Construction Joint Stock Company (Haweicco) and DAC Hanoi Housing Development and Construction Joint Stock Company. The project is built on land plot NO1 of Ha Dinh new urban area, Tan Trieu commune (commercial name Udic Eco Tower).
According to the Department of Construction, the estimated selling price of apartments in this social housing project is about 25 million VND/m2. With the above unit price, a 70m2 apartment in the project costs about 1.75 billion VND.
The estimated rental price is around 150,000 VND/m2/month. The estimated rental price for a 70m2 apartment is 10.5 million VND/month.
The rental price is 390,000 VND/m2/month, it is expected that for a 70m2 apartment, people will have to pay 27.3 million VND/month.
The Department of Construction said that the official price will be announced by the investor after being appraised by the state management agency according to regulations.
The time to receive applications for social housing purchase at the project is expected in the fourth quarter of 2025.
Before 2023, the selling price of social housing in the capital fluctuated from 13-17 million VND/m2. If approved, this will be the highest social housing price ever in Hanoi.
Previously, responding to voters' opinions about the high price of social housing compared to the income of the majority of workers, especially those with low incomes, the Ministry of Construction said that to facilitate the procedure for determining social housing prices, the 2023 Housing Law stipulates that the selling price is determined on the basis of calculating all costs to recover investment capital for housing construction.
The lease purchase price is determined as the selling price and does not include the housing maintenance fee paid by the lessee according to the provisions of the Housing Law. The rental price is agreed upon by the investor and the lessee. In case the investor uses the winning bid price, it is not necessary to re-evaluate the selling price and lease purchase price of social housing.
According to the Ministry of Construction, Article 85 stipulates incentives for social housing investors, such as exemption from land use fees, land rent, tax incentives according to tax laws, investors are entitled to a 10% profit, are allocated land area or commercial floor area and do not have to account for it in social housing prices.
“These regulations contribute to encouraging and promoting investment and development of social housing and ensuring social housing prices at a moderate level so that low-income officials, workers and laborers can afford to buy housing and stabilize their lives,” the Ministry of Construction emphasized.
Regulations on granting red books for land allocated for use for many years without planning
At the time of unauthorized land allocation in 1996, there was no planning, but by 2024, if it is not in accordance with the planning, can a land use right certificate be granted?
On this issue, the Ministry of Natural Resources and Environment has the following opinion:
Clause 2, Article 140 of the 2024 Land Law on cases where households and individuals are using land that was allocated without proper authority and land used from October 15, 1993 to before July 1, 2004, and are now confirmed by the People's Committee of the commune where the land is located to have no disputes and to be in accordance with the district-level land use planning or general planning or zoning planning or construction planning or rural planning, they will be granted a Certificate of land use rights and ownership of assets attached to land (red book) according to the provisions of Clause 3 and Clause 6, Article 138 of this Law.
Accordingly, the land plot in use must comply with one of the five types of planning mentioned above to be considered for a red book.
“Based on the above regulations, in cases where the time of land allocation was not within the authority in 1996 and there was no planning, but by 2024 it was not in accordance with the planning, it would not be eligible for consideration for the issuance of a red book according to the provisions of Article 140 of the Land Law,” informed the Ministry of Natural Resources and Environment.
Source: https://baoquocte.vn/bat-dong-san-gia-chung-cu-ha-noi-qua-dinh-sot-chu-nha-dang-cat-lai-chu-khong-phai-cat-lo-lo-dien-du-an-nha-o-xa-hoi-dat-nhat-303068.html
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