Apartments are still the segment that "attracts" investment cash flow in 2025
Speaking with Lao Dong, Mr. Tran Quang Trung - Business Development Director of OneHousing gave his comments on market developments in 2025.
According to expert Tran Quang Trung, from changes in macro policies, project development plans and product launches of investors, the real estate market in 2025 will have 2 segments that will be of interest to investors.
Accordingly, apartments will be the product that meets the needs of cash flow investment or investment waiting for price increase. Apartments are a segment with a moderate total price, many people can participate in investment, besides, the demand for apartment products in the future is still very high. If considering the same investment level, apartment products are showing superior values compared to townhouses and residential land products in terms of rental yield and price increase rate.
According to OneHousing Center for Market Research and Customer Insight, from the first quarter of 2024 onwards, the transaction ratio between apartments and residential land in Hanoi was about 40 - 60. However, from the second quarter of 2024, with the rapid increase in demand for apartment products, this balance has changed direction - when apartment transactions have exceeded those of residential townhouses.
The second segment that many investors are targeting is low-rise products in projects, large projects, or land products with good infrastructure investment, which can form residential units. The market in 2025 will also "divide the cake" larger for this segment.
The expert recommends that investors at the present time, when participating in the market, need to carefully calculate the capital source, determine long-term investment from 2 to 3 years from the time of purchase until receiving the house. Or should buy with the purpose of preserving assets or exploiting rental cash flow, instead of participating in "surfing" investment, short-term, because this is an extremely risky and unsustainable form of investment for the market.
High-end and luxury apartments will be the main segment
The supply of mid-range apartments will almost disappear from the two markets of Hanoi and Ho Chi Minh City, according to a forecast from OneHousing. The number of newly opened apartment products in the Hanoi market in 2025 is estimated to reach about 30,000 units. Of which, about 60-70% are high-end apartments and 30-40% are luxury apartments.
In the HCMC market, the new supply in 2025 is expected to be about 12,000 units, of which the high-end and luxury supply accounts for 88% (high-end segment accounts for 42%, luxury segment accounts for 46%).
Explaining why the high-end and luxury segments will be the main segment, Mr. Tran Quang Trung - Business Development Director of OneHousing said, first of all, the application of the new land price list leads to higher input costs for businesses, making output also higher.
To meet the increasingly demanding needs of the people, modern investors have developed high-end projects, providing better quality products for the growing middle class, in the context of increasingly limited land funds.
“In fact, the apartment segment in Hanoi, Ho Chi Minh City or other markets in the region and the world are all following the general trend that apartment products will become more and more high-end and complete to serve the increasingly large middle class. With mid-range products, customers will have to accept going further away from the center, where the land price list is “softer”. There are many factors affecting the price increase, but I have not seen any factor that can cause the apartment market to decrease in price,” said Mr. Tran Quang Trung.
