Vietnam's real estate market is entering a new development cycle, in which planning, infrastructure, information transparency and real housing needs are considered leading factors, changing both supply, demand and how investors choose assets.
Mr. Dinh Minh Tuan - Southern Regional Director of Batdongsan. com. vn said that the market is recording three major changes.
First of all, planning and infrastructure become important pulling forces, redistributing supply and demand. In Hanoi and Ho Chi Minh City, long-term planning orientations and key infrastructure projects such as metro, ring roads, inter-regional expressways are gradually changing the real estate development map. New supply is no longer mainly concentrated in the core central area but shifts to near-central areas, satellite areas and new development axes.
According to Mr. Tuan, from around 2019, new supply in Ho Chi Minh City began to shift out of the central area. The East and expanded urban areas recorded increased supply, reflecting a development trend along major infrastructure corridors. In Hanoi, a similar trend is also taking place as new supply expands along ring roads, megacities and new connecting axes.
Mr. Dinh Minh Tuan commented: "DeVELOPMENTS in the two major markets show that geographical distances are gradually being replaced by travel time and connectivity quality. An area far from the traditional center can still attract demand if infrastructure is convenient, utilities are synchronized, and a community of residents has or is being formed.
Besides the shift in supply, the market is also entering a period of stronger transparency. Policies on transaction standardization, building market databases, land data, brokerage certificates and broker identification are creating a foundation for a more professional market. Although not immediately impacting liquidity in the short term, these changes are expected to contribute to reducing information asymmetry, limiting rumors and improving transaction quality in the long term.
Along with that, the market is increasingly clearly differentiated. If in the period 2021-2022 many segments increased in price, by 2026, the diễn biến between types had a clear difference. Apartments continued to maintain their attractiveness thanks to real housing demand and stable exploitation capacity, while land plots and some speculative types stagnated or adjusted in some areas.
In that context, experts believe that investors need to change their asset choices, prioritizing the value of use, liquidity and long-term development potential of the region.
Mr. Tran Quang Trung - Business Development Director of OneHousing - said that this is the time for investors to review the entire list of real estate they own to assess which assets they should continue to hold, which assets need to be prioritized for investment and which will be the key real estate in the list in the next 5-10 years.
According to a representative of OneHousing, the current planning picture, infrastructure and urban development orientation are clearer, and planning information is public. Therefore, investors should rely on planning to decide where to live or choose investment areas in the future.
Mr. Trung cited the periods that created opportunities to increase assets such as when Thu Duc City was established, Hanoi expanded its administrative boundaries after the merger of Ha Tay or the eastern Hanoi area developed strongly. However, according to him, the current context has changed, and successful strategies such as land subdivision and sale or trend investment in localities are no longer as suitable as before.
According to Mr. Trung, when choosing valuable real estate in the future, the most important factor is not how beautiful the project is, but the population planning of the area in the next 5-10 years, along with the development of infrastructure, metro, schools, hospitals, commercial centers and dynamic works. After determining the area worth investing in, investors need to calculate the financial problem, maintain contingency sources and control cash flow when using financial leverage.
