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[Avison Young] The change in administrative boundaries leverages housing market in major cities

In the first half of 2025, foreign direct investment (FDI) into Vietnam’s real estate sector surged to USD 4.8 billion - over 2.4 times higher than the same period in 2024. Mergers and acquisitions activity also accelerated, with participation from both domestic and international investors. Despite macroeconomic fluctuations, the recent completion of the state apparatus and administrative unit restructuring is expected to open up new space and long-term growth prospects for Vietnam’s real estate market.


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David Jackson, Principle & CEO, Avison Young Vietnam, commented: “The market is repricing itself, with peripheral and infrastructure-aligned assets appreciating faster. This is not a short-term phenomenon but a medium-term trend that aligns with demographic and transit-oriented development shifts. Staying informed of land use policies, development planning, and infrastructure funding are strategic approaches to seize emerging opportunities linked to rezoning.”


In the past second quarter, all three key markets - Hanoi, Ho Chi Minh City, and Da Nang - recorded new project launches, with overall price levels continuing to rise. Despite an improvement in supply, the distribution across segments remains imbalanced, with entry-level and mid-range projects nearly absent, increasing challenges for genuine homebuyers. Project development is showing a trend of accelerating expansion into satellite markets.


In Hanoi, new supply was distributed across the city, with a concentration in the western area with the average primary price range to VND 80.9–130.5 million per square meter. Considering the rising costs of land, construction, and labor, the likelihood of a downward adjustment in primary prices and a change in development strategy in Hanoi is very limited without stronger supportive and incentive policies.


Similarly, in Ho Chi Minh City, several new products were launched in Q2. Primary prices continued to increase - by 4-6% for new projects and 2-4% for existing ones. Adjacent to Ho Chi Minh City, the Binh Duong market remained active with new projects, primary prices typically ranging from VND 40–50 million per square meter. Average primary prices in Binh Duong have risen significantly compared to the 2018–2020 period and are showing a strong upward trend.


Meanwhile, in Da Nang, the high-end and luxury segments have become active again. Future supply is expected to be quite diverse, ranging from upscale projects to upper-mid-end offerings and mid-range developments. As a result, Da Nang’s apartment products are anticipated to meet the needs of a wide range of customer segments.

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BOX: Read the full article here (in Vietnamese)



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