Pay in Hanoi, Ho Chi Minh City or Da Nang?

Real estate in 2025: Put money in Hanoi , Ho Chi Minh City or Da Nang?

At the WeTalk program "What to invest in 2025?" organized by the Vietnam Financial Advisors Community (VWA) on January 11, Mr. Phan Le Thanh Long, Chairman of the Vietnam Financial Advisors Community (VWA) shared his opinion on the real estate market in 2025.

Mr. Phan Le Thanh Long, Chairman of Vietnam Financial Advisors Community (VWA)

Supply increases but market is unlikely to have a breakthrough

According to Mr. Phan Le Thanh Long, in 2025, the real estate market will have many favorable factors.

Firstly, capital poured into the business sector continues to grow well. In 2024, real estate business credit increased by nearly 16.6% while FDI disbursement in the real estate business sector increased by 35.2%.

Second, the risk of delayed first-time corporate bond payments is reduced.

Third, solutions to remove legal difficulties are actively implemented.

These factors bring expectations that real estate supply in 2025 will improve, both in terms of number of projects and segments.

“In the market, high-end products still dominate the supply, lacking social housing products and houses with suitable prices. Hopefully in 2025 there will be more products with prices suitable for the majority of consumers when legal problems are cleared,” Mr. Long expected.

Although supply may increase, market demand is not expected to be able to revive. Many opinions say that low interest rates will support the real estate market, but in reality, the low interest rate level has been maintained since the end of the first quarter of 2023 until now (nearly 2 years) and market liquidity is still very quiet. In 2024, real estate consumer credit increased by only 4.64%, proving this.

In addition, people's very weak savings also affect home buying demand. Up to 65% of respondents said that their savings rate will remain unchanged or decrease in 2024. Therefore, most consumers plan to cut spending in 2025. Up to 66% of respondents want to postpone buying large assets such as cars and real estate in 2025.

“Overall, 2025 is a year of continued recovery for the real estate market, but there will be no breakthrough in any segment, especially segments that have established high price levels such as apartments in Hanoi,” said Mr. Phan Le Thanh Long.

Money flows south?

From the end of 2024, real estate investment cash flow shows signs of leaving high-priced areas like Hanoi to find more reasonable areas. Housing prices in Ho Chi Minh City have increased more slowly than in Hanoi for many years, combined with high rental yields, which are attracting cash flow.

Mr. Phan Le Thanh Long assessed that in Ho Chi Minh City, more projects will be opened for sale from the fourth quarter of 2024 and the whole year of 2025. Supply will increase sharply when legal barriers are removed. However, real estate prices are still high compared to people's incomes, combined with people moving to neighboring provinces and cities, reducing demand for real estate in this area.

Experts recommend that real estate in neighboring provinces and cities should be prioritized with more suitable prices. The Ben Thanh - Suoi Tien metro line, which will be put into operation at the end of 2024, will cause many people to gradually move to the suburbs and suburbs, close to public transport routes. The TOD trend (urban development model linked to public transport) is developing due to its reasonable price, convenient transportation, and attracting investment cash flow.

In Hanoi, housing demand in 2025 is still very high, but speculative and investment cash flows tend to shift out of Hanoi (due to high prices). Real estate supply in Hanoi is also more limited than in Ho Chi Minh City, there are not many new projects opening for sale, nor are there major changes in infrastructure... In general, real estate prices will remain the same or have to decrease in products with high prices far exceeding their actual value. The market expects products with more suitable prices to appear.

Da Nang's real estate market has been flat for several years now and is likely to recover slightly from mid-2025 thanks to the National Assembly's approval of a Resolution on piloting a number of specific mechanisms and policies for the development of Da Nang City.

According to expert Phan Le Thanh Long, the real estate market in 2025-2026 is still in the accumulation phase. Therefore, in 2025, investors should still only prioritize products for immediate occupancy, the land segment will only be active when the market heats up.

Source: https://baodautu.vn/batdongsan/bat-dong-san-nam-2025-xuong-tien-tai-ha-noi-tphcm-hay-da-nang-d240286.html