The Vietnamese real estate market is expected to see clear signals of recovery by mid-2025, and developers are preparing for a new growth cycle.
A real estate project under development. Photo by The Investor/Vu Pham.
As many experts forecast, the real estate market will start to improve from Q2/2025, with rising investor confidence. By the beginning of 2026, the sector is hoped to stabilize, with many segments making a comeback.
Once the revised Land Law, Housing Law, and Real Estate Business Law come to life with complete guidance, the “waiting” mentality will go away, and project developers will begin racing to remove bottlenecks with support from authorities. Developers will be more confident in releasing products, which will boost investor trust and encourage the flow of bank deposits into real estate.
However, at this time, most property developers are focusing on sales before deciding on plans for the next phase. Some developers, after gauging the market, have decided to push back their sales plans to 2025, waiting for a more favorable legal environment.
Many positive signs
The Vietnam National Real Estate Association (VnREA) reported that in 2024, although sales had recovered since the beginning of the year, most real estate developers still faced challenges in achieving their profit targets.
Data showed a significant decline of 20% in revenue and 43% in profit against 2023, largely due to a sharp decrease in handovers. Although the market showed some signs of recovery, it still felt the impact of previous backlogs, making it difficult for more than 60% of companies to meet their financial goals for 2024.
On the market, housing demand continued to remain high, with a positive absorption rate, reflecting strong growth in home loan activities. This suggested a clear recovery in buyer sentiment.
Nguyen Huong, CEO of Dai Phuc Land, noted that in Q2/2024, market sentiment started to recover. Developers actively launched new projects for sale, moving away from the cautious approach seen in 2022 and 2023.
“People began to spend money purchasing homes, with notable increases in transactions. Banks, instead of restricting real estate loans, offered reasonable home loan packages.
“Additionally, brokerage firms started actively recruiting staff again, expanding sales operations and product lines, rather than focusing on a single area or a single product category as they did previously. As real estate businesses grow, the market is expected to become more bustling,” she said.
In terms of product lines, Huong believed the market is experiencing a significant shift. In the South, the southeastern region will see strong growth in affordable apartment segments, while the Mekong Delta region will continue to focus on townhouses and land plots.
Similarly, Ngo Quang Phuc, CEO of Phu Dong Group, stated that at the end of 2024, the market showed some positive signs, but a breakout is not yet possible and will require more time.
“The recovery of the housing segment in large urban areas will create liquidity and drive the market. Furthermore, signs of economic recovery and efforts to bring the revised Housing Law, the revised Real Estate Business Law, and the revised Land Law into life will help boost investor confidence and remove legal bottlenecks,” he commented.
Regarding the company’s plans, Phuc said that Phu Dong is handing over the Phu Dong Sky Garden project in Di An town, Binh Duong province, which borders Ho Chi Minh City. The company also plans to launch the Phu Dong SkyOne project, also in Di An.
In preparation for the 2025 market, the firm is finalizing legal procedures for two other projects in Binh Duong. Of these, the 8-hectare Phu Dong 4 will feature two product lines: townhouses and apartments; while Phu Dong 6, spanning more than 6,000 square meters, will be a high-end apartment complex.
Ready for new growth cycle
Director of a real estate company in HCMC who declined to be named held that affordable housing that meets real needs will dominate in 2025.
The reason many companies are rushing to develop this product line is the absence of developers in this segment, while the demand is still substantial. Additionally, local housing development policies are also focusing on this type, the executive added.
A representative from Nam Long Group reported that the company’s sales in the first 11 months of 2024 reached VND4.6 trillion ($183.41 million). Of this, Phase 2 of the Akari City project contributed 37%, Southgate 31%, Can Tho 19%, and Mizuki Park 13%.
For 2025, Nam Long expects sales to be higher than the initial target for 2024 (VND9.55 trillion or $380.8 million), and profit after minority shareholder interests is projected to grow from last year.
Real estate revenue in Q4/2024 is expected to reach VND5.6 trillion ($233.3 million), significantly better than the low base in the first nine months of the year, which was only VND1.5 trillion ($59.8 million), mainly from projects like phase 2 of Akari City and Can Tho, which began handovers in October 2024.
Nam Long’s leadership anticipated that sales in 2025 will be boosted by the launch of the next phases of existing projects, as well as new projects like Nam Long Hai Phong and Paragon Dai Phuoc in Dong Nai province.
Meanwhile, Nguyen Van Hau, CEO of Asian Holding, said that the company plans to launch new products, including about 100 land plots in Dong Nai. These plots will be priced at VND12-13 million ($518) per square meter, and customers will immediately receive the land use rights certificate upon purchase.
Hau predicted that the remainder of this year will still be led by the apartment segment. The real estate market has only just begun to stabilize, with market participants still facing many difficulties due to previous economic impacts. Additionally, legal procedures related to land still encounter many unresolved issues, preventing many projects from moving forward.
“Although new related laws have come into effect, we must wait for guiding circulars to remove the legal bottlenecks, and only then will the market truly recover in 2025. More importantly, customer sentiment needs to be improved. Once this psychological barrier is removed, new capital will flow into real estate. As we have seen, recently, customers still carry a defensive mindset, hesitant to invest in properties,” he explained.
To prepare for the new market phase, Asian Holding is also reshaping its product lines. Instead of distributing products for other developers, Hau said his firm will focus on its own projects in Dong Nai and Binh Phuoc to launch this year.
Minister of Finance Nguyen Van Thang met with Mariam Sherman, World Bank division director for Vietnam, Cambodia and Laos in Hanoi on March 21 to discuss upcoming projects using official development assistance (ODA).
At the meeting, Minister Thang explained that the amended Law on Bidding had been in effect since January 15, decentralising the approval process to cut down the time needed for the disbursement of loans.
Based on the decree guiding the implementation of the amended law issued in February, the Ministry of Finance (MoF) submitted a decision on the bidding of Binh Duong wastewater treatment scheme and the southern waterway corridor development to the government, which issued a resolution approving the loans on March 19. The resolutions have since been submitted to the president for approval.
“The MoF will conduct meetings with localities to remove obstacles for ODA projects, including those of the World Bank. This will help accelerate progress on projects set to be disbursed this year and beyond,” said the minister.
Mariam Sherman thanked Thang for these solutions and proposed some initiatives to remove obstacles for projects that need to be implemented soon, such as the renewable energy enhanced transmission grid, and projects that are currently being implemented and negotiated.
“The aim of Vietnam and the World Bank is to ensure that the schedule and objectives of this capital mobilisation drive are met,” said Sherman.
According to Sherman, the combined value of the World Bank’s list of projects is about $11.2 billion, targeting key areas such as growth innovation, economic restructuring, energy conversion, and climate change response.
“To achieve the high growth rate set out by the government and National Assembly, foreign loans, including those from the World Bank, will play a vital role,” said Minister Thang.
The minister shared the government’s viewpoint that between 2026 and 2030, ODA is expected to pour into key projects such as expressways, railways, high-speed railways, energy infrastructure, climate change resilience, and digital infrastructure.
“With the government’s objective of high economic growth over the next few years, cooperation between Vietnam and the World Bank will be extensive,” he said.
Minister Thang expressed his appreciation for Sherman’s contributions to accelerating the progress of ODA-funded ventures. He also requested the World Bank to consider further simplifying and harmonising procedures, as well as consider finding ways to reduce interest rates for high-priority projects.
More than 25 kilogrammes of various narcotics has been seized in the lastest drug crime crackdown in Quang Binh province.
More than 25 kilogrammes of various narcotics are seized in the crackdown. (Photo courtesy of the police)
Quang Binh – Police of the central province of Quang Binh said on March 20 that the force, in coordination with authorities of Laos’ Khammouane province, has successfully dismantled a major cross-border drug trafficking network, seizing more than 25 kilogrammes of various narcotics.
The crackdown took place on March 12 when Dinh Hong Thuan, born in 1971 and from Quang Binh’s Minh Hoa district, and Nguyen Thanh Phuong, born in 1993 and from the province’s Dong Hoi city, were caught red-handed illegally transporting drugs.
Authorities confisticated some 20 kilogrammes of drugs, including 60,000 amphetamine pills, eight kilogrammes of ketamine, four kilogrammes of crystal methamphetamine, and two kilogrammes of heroin.
Following further investigation, the law enforcement force arrested Pham Le Tuan Anh, born in 1995 and from Dong Hoi city, for drug trafficking. In this additional arrest, around 5 more kilogrammes of narcotics was seized, including over 25,000 amphetamine pills, 1.5 kilogrammes of crystal methamphetamine and ketamine, and 1 kilogramme of heroin.
The local police charged the suspects and is expanding investigation into the case.
Microsoft is monitoring developments related to US export restrictions on semiconductor technology, but its operations in Malaysia have not been affected, according to an executive of the US tech giant.
The Microsoft logo in London, the UK (Illustrative photo: Xinhua/VNA)
Kuala Lumpur – US tech giant Microsoft said its artificial intelligence (AI) infrastructure rollout in Malaysia remains on track despite concerns over potential disruptions in the supply of advanced AI chips.
The company is monitoring developments related to US export restrictions on semiconductor technology, but that its operations in Malaysia have not been affected, Microsoft Malaysia managing director Laurence Si told a press conference on March 20.
Microsoft’s investments in Malaysia, including the upcoming cloud region launch, are proceeding as planned. It is committed to deploying AI services and digital infrastructure on schedule, ensuring Malaysia benefits from the latest technological advancements, he added.
Concerns over AI chip supply have grown following Microsoft’s announcement of its in-house Azure Cobalt 100 chip, designed to enhance AI capabilities.
Asked whether Malaysia’s cloud region would use the latest AI chips, Si said Microsoft is assessing market demand.
If there is a market for it, it will be incorporated into the framework and timeline for Malaysia, he said, adding that there is already industry interest in AI-optimised chipsets like Cobalt
In a related news, Prime Minister Anwar Ibrahim has emphasised the importance of developing local talent in blockchain technology to ensure that investments in the sector benefit Malaysians.
The matter was discussed during a courtesy visit on March 20 from representatives of Klickl, a company operating finance and assets within the digital and blockchain ecosystem, he said in a Facebook post.
Anwar noted that Malaysia has significant potential in the field and can leverage blockchain technology across various sectors. Beyond finance and digital assets, he said the technology could also be utilised in government services and the halal industry.