Experts believe that 2025 will be the beginning of a new cycle in the real estate market. So after the market freeze, what will the new cycle look like?
A New Cycle Of The Real Estate Market Has Begun
After a difficult period, the signs of recovery in the real estate market are becoming clearer. This recovery is confirmed by specific figures. The 2024 real estate market report of the Vietnam Association of Realtors said that in the whole year of 2024, the whole market recorded more than 47 thousand successful transactions, equivalent to an absorption rate of 72%. This number of successful transactions is nearly 3 times higher than in 2023. In the fourth quarter of 2024 alone, the market had more than 20 thousand successful transactions, while in the same period of 2023, the number of successful transactions was only 1/4 compared to the fourth quarter of 2024.
From the above data, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that in the coming time, market transactions will continue to grow steadily in both quantity and quality when supply is improved. The speed of urbanization and economic development, along with the completed legal corridor, are the foundation to promote the demand for real estate, including both residential and investment, to continue to increase.
Sharing the same view, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that a new cycle is opening for the real estate market. The latest data from Batdongsan.com.vn are all positive numbers showing the transformation of the market. Specifically, the level of interest in the market, with many segments and types, is growing by double digits. Specifically, compared to the same period in 2023, the level of interest in land and residential land increased by 49%, private houses increased by 25%, apartments increased by 24% and villas increased by 22%. The reversal signals are increasingly clear, especially from the third quarter to the end of 2024. Therefore, 2025 will be the year that the real estate market continues to grow.
The Face of the New Market Cycle
Ms. Do Thu Hang, Senior Director, Consulting and Research, Savills Hanoi said, With the positive developments in 2024, the Hanoi real estate market as well as the national market in 2025 is expected to enter a new development cycle. After previous fluctuations, the market in the new cycle will be upgraded and more professional. Thanks to strong driving forces from the completion of the legal framework and strong growth factors in the macro economy, the market cycle will develop in a sustainable direction.
The completion of the legal framework must include: Specifically, important laws related to real estate have been passed and come into effect earlier than expected in 2024 such as the Law on Real Estate Business, the Land Law, the Housing Law and most recently the approval of the Hanoi Capital Planning for the period 2021-2030, with a vision to 2050, creating conditions for people and investors to see more clearly the orientation and shape of Hanoi’s urban space development.
In addition, the new land price list is also highly anticipated. The removal of the land price framework and the adjustment of the land price list according to the market mechanism not only affects real estate prices but also directly impacts those participating in the market, from land owners to investors and project developers. The land price list is issued at the end of the year and takes effect immediately, helping developers have a clearer picture, and relevant agencies will also have important calculations for project development in 2025.
“In this new market cycle, the completion of the legal framework will create stronger competition, leading to a new purge of products and investors. If in the past, investors only needed capital and projects to be able to participate in the market, now, investors must build reputation, experience and financial potential to be able to develop projects,” said Ms. Hang.
