Vietnam’s real estate market has seen a surge in transactions in 2024, with significant increases in the sales of apartments, individual houses, and land plots compared to the previous year. The number of completed social and commercial housing projects has also risen, signaling a potential growth cycle ahead.
Deputy Minister of Construction Nguyen Van Sinh highlighted these positive changes during a recent discussion on the state of the real estate market and social housing development in early 2025. The construction sector, particularly the real estate market, has begun to recover after overcoming some of its toughest challenges. The Deputy Minister offered his assessment of the market’s performance in 2024 and what lies ahead.
“2024 saw the resolution of several obstacles facing many real estate projects, leading to increased housing supply and the launch of numerous social housing developments,” Nguyen Van Sinh explained. The supply of commercial housing saw an 8.6% increase in completed projects, newly licensed developments, and projects preparing to sell homes. Housing availability rose by 9%, with 48 projects coming to fruition, including 28 completed projects that contributed 20,200 units to the market, and 20 new projects that introduced 22,300 apartments.
In terms of transactions, the market witnessed a significant upswing, with 137,000 apartments and houses sold and 447,000 land plots transferred—an overall 38% increase from 2023. Despite these gains, however, challenges persist in the implementation of real estate projects. Land clearance issues, shifting land use regulations, land pricing, and delays in investment policy approvals remain significant barriers that continue to affect supply and pricing in the market.
Social housing, a key focus for the government, has garnered significant attention. In total, 645 social housing projects are underway, with the potential to provide 581,000 units. Of these, 96 projects have already been completed, 135 are under construction, and 414 have received investment policy approvals. In 2024, 28 new projects were completed, providing over 20,000 social housing units, a 46% increase from 2023’s 6,420 units. Despite this progress, the increase in social housing supply has not fully met expectations due to legal obstacles and implementation delays.
A notable initiative to boost social housing development is the VND120 trillion preferential credit program, which aims to support housing for low-income families, workers, and the renovation of old apartment buildings. So far, commercial banks have committed VND4 trillion in loans, with over VND2.36 trillion disbursed—benefiting both developers and individual homebuyers. However, the disbursement process has been slower than anticipated, and the real estate sector continues to wait for new laws to streamline procedures.
Looking forward to 2025, Deputy Minister Sinh is optimistic about the market’s continued recovery. Several key factors are expected to contribute to the market’s growth. First, the legal framework, which was completed in 2024, is set to become effective and will address practical challenges. Second, capital for the sector is being gradually unlocked, with the government implementing flexible monetary policies, including debt deferrals, debt rescheduling, and interest rate reductions to ease the financial burden on businesses.
Additionally, social housing development remains a priority, with the government aiming to complete at least 1 million units for low-income families and industrial park workers by 2030. This includes 100,000 units targeted for completion in 2025. Efforts to resolve issues faced by real estate projects are also underway, with both public and private sector stakeholders working to overcome obstacles. Private developers are actively restructuring their investments and launching new projects, further contributing to the market’s potential recovery.
While challenges remain, the real estate market in 2025 holds the promise of recovery and sustainable growth, driven by continued governmental support, legal reforms, and proactive initiatives by private developers.
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