Vietnam’s real estate market is set for a promising 2025, driven by low interest rates, rising investor confidence, and a shift in capital flow from the North to the South, said Vo Hong Thang, director of consulting & project development at DKRA Group.
An apartment complex in the Vinhomes Ocean Park urban area, Gia Lam district, Hanoi. Photo courtesy of Vinhomes.
Apartment segment to lead the way
Thang forecast that 2025 will be a year of growth, spurred by the market’s recovery starting in late 2024. Key drivers include policy reforms, increased supply, infrastructure development, and shifting investment patterns, which together promise to ignite a new growth cycle.
“The easing of supply bottlenecks, especially for projects meeting legal requirements, will be a major highlight this year,” Thang said. “Supply is expected to grow significantly across most segments compared to 2024, though it will still fall short of the levels seen before 2019.”
In the southern region, the apartment segment is expected to improve, with over 15,000 units slated to enter the market. However, supply will remain concentrated in Ho Chi Minh City and neighboring Binh Duong province, which is predicted to become a hub for mid-range (B and C) apartments.
This shift reflects an ongoing trend of investors moving away from the central areas of HCMC, where land availability becomes increasingly scarce and development costs rise, he said, adding that legal bottlenecks remain unresolved, prompting investors and developers to seek opportunities in surrounding regions as a strategic move.
In the northern region, apartment supply is expected to continue its upward trajectory from 2024, with a focus on Hanoi, Hung Yen, and Hai Phong. Projects in Hanoi will mainly be concentrated in the western and eastern districts, particularly Dong Anh, Gia Lam, and Nam Tu Liem.
Thang held that with improvements in supply, the market’s liquidity is also anticipated to improve in 2025. Investor confidence is expected to increase as interest rates remain low, and more capital flows southward, with northern investors seeking opportunities in southern provinces.
Reputable developers with strong track records in construction progress, clear legal documentation, and well-developed infrastructure will be in high demand as investors focus on reliable, high-quality projects, he added.
Both primary and secondary property prices are expected to rise this year, driven by increased input costs and the rising expense of project development. The anticipated adjustment of land prices will likely lead to higher compensation costs for land clearance, further pushing up development costs for real estate businesses.
In the secondary market, prices may see increases, particularly for projects with fast construction progress, completed homes, and ownership certificates. This rise in secondary prices will gradually close the gap between primary and secondary prices, offering more choices to buyers and enhancing investment opportunities.
Vo Hong Thang, director of consulting & project development at DKRA Group. Photo by The Investor/Trong Hieu.
A new growth cycle
The real estate market in 2025 is poised for a new growth cycle, supported by several key factors, according to the DKRA expert.
First, policy changes related to land, housing, and real estate business management have created greater transparency in legal processes, making it easier for developers to navigate legal procedures and accelerate project development. In addition, revised mechanisms for land recovery, compensation, and valuation will foster new projects and revive stalled ones.
Second, infrastructure development continues to be a major catalyst. The government is investing heavily in strategic projects like the HCMC Ring Roads 3 and 4, metro systems, and inter-regional expressways connecting key economic hubs. These improvements will boost regional connectivity and unlock new opportunities for the property market.
Stable interest rates and controlled inflation will further support the market, making it easier for businesses to access capital and for buyers to secure loans. This financial stability will help restore confidence among both investors and end-users, leading to sustained demand.
After a period of uncertainty, investors and end-buyers are gradually returning to the market. Positive news on policies, infrastructure, and finance has instilled confidence, prompting more buyers to make decisions. In particular, the landed house and apartment segments continue to be popular for their long-term value appreciation potential, making them top choices for investors.
Overall, while the 2025 real estate market remains unpredictable, it is expected to continue the recovery trend that began in 2024. Although breakthroughs may be slow in the first half of the year, the market is projected to show more positive signs in the second half, Thang said.
There will also be differentiation among property segments and regions, with residential properties catering to genuine demand taking the lead, he noted. The southern apartment market, especially in HCMC and Binh Duong, is likely to be a standout, while northern markets like Hanoi, Hai Phong, and Hung Yen will continue to attract investment. Central Vietnam, with Danang at the forefront, is expected to remain a focal point, especially for projects offering excellent locations, comprehensive amenities, and competitive prices.
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.