Vietnam’s property market is poised for significant growth as confluence of economic factors, evolving real estate laws, and pent-up demand are shaping a new market trend. Experts predict that 2025 will be a banner year for affordable housing, particularly in the areas surrounding HCMC.
Where supply meets demand
Dr. Nguyen Van Dinh, chairman of the Vietnam Association of Realtors (VARs), anticipated that the supply of residential real estate will increase by around 10% in 2025 compared to the previous year. This growth will be more evenly distributed across different regions, as previously stalled projects resume development and new projects prepare to launch, capitalizing on the market’s recovery.
VARs previously forecasted that the significant imbalance between supply and demand, especially for mid-range and affordable housing, will continue to drive up prices in downtown HCMC and Hanoi City. The association estimated price increases of 7-10% this year.
With property values in the inner city becoming increasingly prohibitive, the areas surrounding HCMC are seen as a breath of fresh air, offering solutions to the market’s most pressing challenge. Unlike the eastern part of the city, where prices have skyrocketed, the western region, with its ample land at reasonable costs, still offers significant opportunities for affordable housing projects.
While some attribute the attractiveness of the western suburbs to land speculation and short-term price increases benefiting investors, the real driver of the market is affordable housing that meets genuine needs.
The growth of apartment developments in the western suburbs is driven by two key factors: changing housing preferences and the rising cost of landed properties. In the early 2010s, land in this area could be had for VND3-4 million per square meter, and townhouses for VND9-11 million per square meter. Since 2020, those figures have jumped to VND21-35 million per square meter for land and VND50-70 million per square meter for townhouses.
Young families and those working in the industrial parks of the western region primarily seek move-in ready homes, either for living or renting, typically priced around VND1.3 billion (with banks offering 70-80% financing). Apartment buildings are the only option that meets these criteria, as a comparable landed house would require a budget of VND4-7 billion.
Destino Centro, located at the western gateway to HCMC, exemplifies this trend. With reasonable prices and attractive amenities, including four swimming pools, a kindergarten, and landscaped gardens, this project not only meets housing needs but also offers solid investment potential. Recently, the project earned recognition from the Vietnam Real Estate Market Research Institute and VARs Connect as one of the top five promising projects in the Vietnamese real estate market for 2025.
Destino Centro’s accessible pricing appeals to a broad range of buyers, from young families to long-term investors. This has quickly made it a project to watch and a potential flagship project in western HCMC’s affordable apartment segment.
In an increasingly transparent real estate market, affordable homes satisfy buyer demand and provide a safe haven for investment. With well-planned development strategies, infrastructure improvements, and supportive local policies, this region’s real estate market could become a strong competitor to HCMC, Dong Nai, Ba Ria – Vung Tau, and Binh Duong within the next 5-10 years.
