Week 52/2024 – Central Vietnam Real Estate News Summary

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   1. Renting Houses Becomes A ‘Hot’ Keyword As Gen Z Tends To Prefer Renting High-End Properties.

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1. Dr. Võ Trí Thành highlighted the significant growth in rental housing demand, driven by four key groups: foreigners, Vietnamese seeking suitable living spaces, Gen Z prioritizing flexibility and quality of life, and low-income earners. Gen Z, in particular, is shaping the trend, especially for high-end rentals, due to their increasing affluence and preference for premium living standards.

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   From a business perspective, Mr. Lê Đình Chung noted that high-end rental customers, including foreign professionals and wealthy Gen Z individuals, prioritize location, amenities, product quality, and management.

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   Additionally, Ms. Đinh Thị Nga emphasized the post-pandemic rise of serviced apartments, which gained popularity due to their ability to operate uninterrupted during lockdowns. These projects are now concentrated in key tourism areas and have become an increasingly attractive segment. Serviced apartments in Hanoi and HCMC have higher occupancy rates (80-89%) than hotels (68-70%) and meet high-end living needs. Limited supply and high demand in Hanoi drive rental prices up by 5% annually. Renting also helps stabilize housing prices, benefiting low-income groups. Economic growth and FDI boost the potential for quality serviced apartments in central urban areas.

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Source: cafebiz.vn

2. Real Estate Continues To Attract Significant Investment: What Will Be The Major Breakthrough In 2025?

Vietnam’s real estate market is poised for a surge in 2025, driven by economic growth, supportive government policies, and increased foreign investment. Low-rise properties, particularly those combining living and commercial spaces, are expected to be highly sought after.

Developers are focusing on sustainability and building high-quality projects in well-developed urban areas. As the market evolves, buyers are demanding more than just a place to live; they seek integrated communities that offer convenience, comfort, and a strong sense of place.

Key trends for 2025 include:
Strong demand for low-rise properties: Houses and townhouses that combine living and commercial spaces are expected to be highly sought after.
Focus on quality and location: As incomes rise, buyers are seeking high-quality properties in well-developed urban areas.
Expansion beyond major cities: Investment is spreading to secondary cities and provinces, driven by growing regional economies and infrastructure development.
Sustainable development: Developers are increasingly focusing on green building practices and creating communities with comprehensive amenities.

Source: cafef.vn

3. 6 Highlighted Events In Vietnam’s Real Estate Market In 2024.

Three significant laws—Land Law, Housing Law, and Real Estate Business Law—will come into effect on August 1, 2024, five months ahead of schedule, aiming to strengthen Vietnam’s real estate market. Experts believe these laws will create a safer and more sustainable cycle. In 2024, social housing development has gained focus as a vital solution to the housing shortage. Challenges remain with land-related procedures, particularly tax calculations, though old land price tables will be used until 2025. A new land price framework will regulate land use fees, taxes, and compensation. In Hanoi, apartment prices have surged, with central locations now exceeding 60-70 million VND/m². Land auctions in suburban areas like Thanh Oai have attracted significant attention, with prices surpassing expectations. The updated Land Law emphasizes market-based pricing, accelerating compensation and curbing speculation. The 2023 Housing Law also facilitates mini apartment ownership and expands homeownership rights for foreigners.

Source: doanhnhanvn.vn

4. Increased Real Estate Investment Driven By Market Anticipation In 2024.

People have a hoarding mentality and invest a lot of money in real estate in 2024 compared to previous years.

This is the opinion of Associate Professor, Dr. Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment at the seminar “Impact of the Land Law 2024 on the real estate market”.

In 2025, all localities will begin to issue and apply new land price lists, which will also create certain impacts. Therefore, right from the beginning of 2024, the general psychology of the market, businesses and investors is to prepare ahead and seize opportunities before there is a new land price list.

In general, the entire real estate market has had huge fluctuations in prices, both for houses and apartments, directly affecting people’s psychology. Therefore, recently, they have had a hoarding mentality, investing more money in real estate in 2024, different from previous years such as 2022, 2023 or the covid period 2020-2022. … “, Mr. Tho said.

The 2024 Land Law has been adjusted and amended in a timely manner to address difficulties. This will be one of the important foundations, helping to clear land resources and develop a healthy and sustainable real estate market in the coming time.

Source: cafebiz.vn

5. The Real Estate Market Is About To Enter A New Growth Phase.

The Vietnamese real estate market is entering a new growth phase, with a strong recovery in 2024 driven by reduced interest rates and increased liquidity. The central region, notably Quy Nhơn, is a key investment destination due to its strategic location and infrastructure development, including national highways, the North-South Expressway, and Phù Cát Airport upgrades. Quy Nhơn’s real estate prices remain competitive, at 30–50% lower than other coastal cities, with significant growth potential. Key projects, such as the Quy Nhơn Iconic Urban Area, are attracting investors due to prime locations and comprehensive legal frameworks, signaling robust market prospects for 2025.

Source: cafef.vn

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