After many years of growth based heavily on expectations and speculative cash flow, the real estate market is forecast to enter a phase of shift towards serving real needs. However, housing prices are still difficult to fall deeply as land, material, labor and project development input costs continue to remain at a high level.
Dr. Nguyen Van Dinh - Vice Chairman of the Vietnam Real Estate Association - said that the goal of bringing real estate prices to a more reasonable level so that people can access them is being coordinated by the State. However, reducing housing prices still faces many barriers due to high project development costs.
The State is making efforts to coordinate to gradually bring prices to a reasonable level, helping people to access housing. However, there are still many factors that are very difficult to reduce such as land, input costs, labor, raw material prices and many import costs with world prices that have not been regulated. This is also one of the challenges that makes it difficult to reduce development costs," said Dr. Nguyen Van Dinh.
According to him, from 2025, Vietnam has entered a new stage of development with the highlight being the streamlining of the apparatus, merging from 64 provinces and cities to 34 provinces and cities. Along with that is the shift in thinking from "management" to "creating and supporting" businesses, creating more motivation for investment and economic development activities.
Dr. Nguyen Van Dinh said that the positive prospects of the real estate market in the next 5 years not only come from the supply side but are also supported by the foundation of economic growth and the increasing demand of people.
As the economy continues to develop, income is improved and urbanization takes place strongly, the demand for housing, production and business premises, trade and services will continue to increase. This is considered an important driving force to promote market demand in the medium and long term.
However, unlike previous growth cycles, the increase in demand is forecast to go hand in hand with increasing competition. Improved supply will create more choices for customers, thereby limiting artificial scarcity and reducing the risk of unusual price increases.
According to Dr. Nguyen Van Dinh, in the new context, the decisive factor for the success of the project is no longer the ability to create waves or expectations of price increases in the short term, but the actual utility value, effective exploitation capacity and level of meeting people's needs.
This trend will promote the market to shift more strongly to a development model with people at the center. Products that meet real housing needs, have transparent legal frameworks, synchronous infrastructure and good quality of life will become the main driving force for market growth.
I believe that in the next 5 years, the real estate market picture will be much more positive. Supply and demand bottlenecks will be gradually removed, supply will be improved, real demand will be placed at the center and the market will have the opportunity to create new breakthroughs" - Dr. Nguyen Van Dinh emphasized.
Agreeing with the development trend of the market, Mr. To Anh Hung - REFI Director - said that Vietnamese real estate is entering a stage where the value of use will be more important than the expected value.
In the "home is for living" era, products with convenient connecting locations, meeting actual living needs, possessing a complete utility ecosystem and associated with new growth poles will be the most sustainable competitive asset group.
In other words, instead of chasing short-term waves, the market is gradually returning to the core nature of real estate: serving people and creating real utility value for life," Mr. Hung said.
