The Vietnam real estate market in 2024 is expected to reach important milestones, helping the market recover strongly after nearly six years of stagnation since the COVID-19 pandemic in 2019. Before COVID-19, the market had already shown clear signs of slowing down due to the government’s major legal inspection of most projects, which led to a shortage in supply. Throughout the period from 2019 to 2024, the market saw a slight recovery in the fourth quarter of 2021 when COVID lockdowns were lifted, but this growth was short-lived and quickly declined due to various global economic fluctuations, especially the impact of global conflicts from 2022 (Russia-Ukraine war, Israel-Gaza conflict), with the Vietnam property market bottoming out in 2023.
During the 2022-2023 period, there were signs of recovery because demand from buyers remained high. However, a waiting mindset prevailed as people hoped for lower prices, and new projects had not yet launched. Buyers and investors turned to the secondary market, with many brokers reporting that while a large number of customers expressed interest and visited several projects, they were often waiting for prices to drop further or trying to push for lower prices from sellers, causing the market to remain stagnant despite high demand.
As we move into 2024, the domestic economy is recovering, and there are many positive prospects for business operations, with more orders and companies hiring and ramping up production to meet delivery schedules. This has led to renewed interest in real estate from investors and homebuyers. Positive changes in the market are evident in the following milestones:
After Lunar New Year 2024: As usual, buyers are slow to make decisions in the first month of the Lunar New Year (around early February), with the market remaining sluggish until the end of February. However, this is a great opportunity for buyers to make purchases during this period, as they are likely to secure favorable prices.
February – March: According to reports from popular real estate websites, the number of people searching for apartments skyrockets, both for buying and renting. This signals a market-wide recovery in the Vietnam real estate market.
April – May: The real estate market begins to recover in the North. Major developers from the South start expanding into the North, with notable projects such as Lumi Ha Noi by CapitaLand and Lumiera Evergreen by Masterise Homes. CapitaLand’s successful projects in the South continue to impress with their first project in Hanoi, receiving 6,000 bookings for 2,000 units. Both developers have been successful in their initial launches thanks to choosing high-traffic locations with several nearby amenities, attracting not only Hanoi’s local customers but also loyal customers from the South who are investing.
June – July: Real estate activity in the North picks up, while the Ho Chi Minh real estate market is quieter. In Central Vietnam, three projects by Sun Group create a bustling market environment, attracting not only local buyers but also professional investors from Hanoi who have strong financial resources and specialize in sourcing high-quality projects. Additionally, just before the new land law is passed, land transactions in suburban areas start to pick up again. Many investors, who had been eagerly waiting for this opportunity, are excited as the chance to sell increases after several years of waiting, despite incurring losses from interest on bank loans.
August – September: This period sees the passing of the new real estate law, with several key changes directly impacting the Vietnam property market, such as the new land price list, which affects land clearance costs and project construction costs, as well as the expansion of the overseas Vietnamese market allowed to own land and property in Vietnam. Both of these factors are expected to push property prices higher in the country.
October – November: The Ho Chi Minh real estate market begins to heat up again. Many developers, after a long period of silence due to legal challenges, have resolved issues and relaunched their projects. Numerous projects begin receiving bookings and receive positive responses from buyers, even though prices have reached new heights. Notable projects include The Opusk Metropole Thu Thiem, a luxury apartment by Sonkim Land in a prime location on the Thu Thiem Peninsula; The Global City by Masterise Homes; Eaton Park by Malaysian developer Gamuda Land; and Sonkim Land’s TOD project near the metro and new Eastern Bus Station, The 9 Stellar. These new developments in Ho Chi Minh City have successfully launched their first phases and continue to receive bookings for their second phases, which are expected to open after the Lunar New Year in 2025.
For detailed project information, please refer to the article below:
The market’s recovery, on the new price foundation, has led to a slight decrease in rental yields compared to previous years. However, the Ho Chi Minh property market remains attractive to investors, especially foreign investors, due to the lack of differences in taxes and fees between Vietnamese and foreign buyers, no taxes on second properties, high occupancy rates, and strong rental yields, as well as new development potential in Ho Chi Minh City.
December: A new era for public transportation begins with the official opening of Metro Line 1. After 17 years of approval and 12 years of construction, with many delays, Metro Line 1 from Ben Thanh to Suoi Tien officially began serving the public on December 22, 2024. To best support public transportation, the city not only offers free service for residents until January 1, 2025, but also prepares 17 bus routes connecting 14 stations along Metro Line 1, making public transport more accessible and encouraging the use of the metro to reduce congestion and traffic jams in the city.
Although this event was expected to receive positive responses from the public, the actual events during the first week of operation exceeded expectations from both experts and local authorities. People were extremely excited to use the metro, and “metro congestion” became a common sight at stations throughout the day. As a result, projects near metro stations in Ho Chi Minh City will greatly benefit from this event, with both homebuyers and investors excited about the opportunities. Developers are actively exploring remaining land plots along the metro line. Among these, The 9 Stellar by Sonkim Land is considered the last available plot next to the central metro station (and transfer station). This project is currently in the booking phase and is expected to launch after the Lunar New Year in 2025.
For inquiries about real estate in Vietnam real estate market, please contact the Sales Department – Ms. Helen at helen.nguyen@era.com.vn or phone number +84 906 74 1539 (Zalo, WhatsApp, Line, KakaoTalk).
