The domestic real estate sector is poised for a substantial profit increase in 2025, fuelled by a more optimistic macroeconomic outlook and an expected rise in new supply as companies finalise legal procedures for upcoming projects.

Vietnam’s housing market is facing pressure with soaring prices, making Ho Chi Minh City and Hanoi, the country’s two business and financial hubs, among Asia’s least affordable cities for homebuyers, according to a report by property consultant CBRE.

2025 marks the beginning of a new cycle for the housing market in Ho Chi Minh City, characterised by abundant supply and improved product quality, driven by increasing competition among real estate developers, said Executive Director of CBRE Vietnam Duong Thuy Dung.

The primary selling prices of condominiums in Hanoi experienced a sharp 36% year-on-year and 12% quarter-on-quarter increase in 2024, according to CBRE Vietnam, a foreign real estate service company.

Prices of condominiums in Hanoi are catching up with prices in Ho Chi Minh City in both primary and secondary markets, according to CBRE Vietnam’s report on the capital's real estate market in the first half of this year released on July 9.

The supply of new apartments in Hanoi increased fourfold in the second quarter of 2024 from the previous quarter, Nguyen Hoai An, Senior Director for the research and consulting division at CBRE Vietnam, said at a press conference on July 9.

The industrial real estate segment has emerged as a driver of the property market after sailing through the economic storm last year thanks to the foreign direct investment (FDI) influx, experts have said.

The recently released 2024 Asia-Pacific investor intentions survey by CBRE shows that the real estate market of Vietnam ranks second among the top three preferred emerging markets, following India and preceding Thailand, in the region.

Vietnam is the second most sought after emerging market for value-added and opportunistic investments, according to the recently released 2024 CBRE Asia Pacific Investor Intention Survey.

Vietnam’s industrial real estate market is heating up due to healthy absorption of industrial land, ready-built factories and warehouses, reported experts from real estate consultancy CBRE Vietnam.