The year 2024 witnessed a significant surge in apartment prices across Vietnam, with Hanoi, Da Nang, and Ho Chi Minh City leading the way as the top three cities experiencing the highest increases.

A recovering real estate market

According to the Vietnam Association of Realtors (VARS), the real estate market in 2024 overcame its most challenging phase.

The total number of properties listed for sale reached nearly 81,000, marking a 40% increase compared to 2023. Among these, 65,376 were newly introduced to the market - three times the figure for 2023 but still only about 7% of 2018’s volume.

In Q4 2024 alone, 28,000 new properties were listed, double the number from the previous quarter and four times the total from Q4 2023.

Improved supply contributed to stable growth in transactions. Over 47,000 successful deals were recorded in 2024, with an absorption rate of 72%.

Steep price hikes in major cities

Apartment prices experienced dramatic increases across several markets, especially in Hanoi, Da Nang, and Ho Chi Minh City.

A VARS study of 150 selected projects found that, as of late 2024, average apartment prices in Hanoi had risen by 72.4% compared to Q2 2019.

Da Nang followed with a 49.9% increase, while Ho Chi Minh City saw prices climb by 34.3%.

Primary market prices continued to rise, driving secondary market prices higher, often exceeding actual property values.

In parallel, land prices, particularly for fully legal plots ready for development, rebounded strongly. Despite stricter regulations on land parceling and sales, demand for low-priced plots (under VND 30 million per square meter) in well-developed or planned urban areas surged, with prices increasing by 15% compared to the end of 2023.

Shifting investor preferences

Investors increasingly turned to suburban and provincial areas where residential land prices remain reasonable and infrastructure development promises long-term growth.

In contrast, land and housing prices in Hanoi and Ho Chi Minh City continued to climb, establishing new highs that are increasingly out of reach for the majority of buyers.

Nguyen Van Dinh, Chairman of VARS, observed that while the real estate market is generally improving, liquidity in the high-end segment has slightly declined. However, properties catering to actual housing needs at reasonable prices remain stable.

To foster a safe, sustainable recovery, VARS advises developers to align pricing strategies with market purchasing power rather than focusing on short-term profits.

Nguyen Le