Real estate offers lucrative investment opportunities in 2025

According to Le Dinh Chung, a member of the Vietnam Association of Realtors' Task Force, the market for land that can be divided into separate plots for sale is expected to witness balanced development across Vietnam in the second quarter (Q2) of 2025.

“Since late last year, investors have been buying plots in areas where prices have not experienced significant increases. These investors are taking a forward-looking approach, as the 2023 Law on Real Estate Business restricts the subdivision of land with technical infrastructure into smaller plots for sale. In addition, that land is not subject to auction of land use rights for investment in housing construction projects according to the provisions of the Land Law,” he noted.

The 2023 Law on Real Estate Business, together with the amended Land Law and the Housing Law, came into force from last August.

Strict regulations on the subdivision and sale of land may lead to a sharp decline in supply this year and beyond. Consequently, investors are trying to enter the market early.

Statistics from Batdongsan.vn indicate that the number of investors in Hanoi searching for plots in areas along Ring Road No. 4 increased by approximately 30 per cent in Q4 of 2024 compared to the previous quarter.

In districts traversed by Ring Road No.4, such as Soc Son, Me Linh, Thanh Oai, and Dan Phuong, transaction volumes of the products rose by 10-20 per cent compared to Q3.

The Vietnam Association of Realtors (VARS) has assessed that prices of land for subdivision with complete legal documentation are on a recovery, poised for strong growth in 2025 amid a decline in supply due to stricter regulations.

According to VARS, plots priced below $1,200 (VND30 million) per square meter in cities with gradually improving infrastructure are in strong demand. Residential land plots in major cities such as Hanoi and Ho Chi Minh City are expected to entice significant interest. In the suburbs of Hanoi, the demand for subdivided plots priced below $80,000 has also risen sharply.

A real estate agent in Hanoi shared with VIR that currently residential plots with clear legal documentation and prices below $80,000 each are highly sought after.

“With modest capital of around VND1-2 billion, many investors are turning to plots in suburban districts like Thach That, Thanh Oai, and Hoai Duc in anticipation of price appreciation. This trend is being driven by soaring prices of apartments and inner-city townhouses which require significantly higher initial investments,” he said.

Pham Duc Toan, general director of Hanoi-based real estate firm EZ Property, said, "In the long term, the market for land that can be split up and resold has strong growth potential."

Most Vietnamese people tend to favour land and gold investments. In major cities like Hanoi, land prices have stabilised and steadily increased since the introduction of the 1993 Land Law which gave households the power to exchange, transfer, lease, inherit, and mortgage their land-use rights.

Experts, however, say that investment in this segment requires a medium-term outlook, with capital recovery expected within one to three years rather than a fast turnaround.

Toan noted that suburban land liquidity remains low as these assets do not generate immediate cash flow. Excessive reliance on financial leverage may also entail potential risks.

Nguyen Anh Que, chairman of Hanoi-based developer G6 Group, pointed out two reasons why in 2025 the market for land may not experience the same feverish demand as in 2022.

“Firstly, in third-tier urban areas and above, properties must be fully constructed before they can be sold, driving up investment costs. Secondly, land separation procedures have become more complex. Nevertheless, land plots will remain more attractive than other products,” he said.

In addition to the continued strong demand for land for subdivision and apartments, industrial real estate, commercial office space, and retail properties are anticipated to emerge as promising ventures.

Vietnam’s residential property market has captured the attention of High-Net-Worth Individuals (HNWIs) and investors, driven by strong GDP growth, urbanisation, and its strategic role in the “China+1” strategy, according to Knight Frank’s report.

Experts shed light on the factors shaping different investment channels in 2025, from real estate to stocks and cryptocurrency, at the second panel discussion at VIR's conference "Investing 2025: Decoding Variables - Embracing Opportunities" on December 12.

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