Real Estate 2025: Expected to Breakthrough Thanks to New Policies and Supply
In his forecast for investment opportunities in 2025, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - stated that the real estate market will thrive strongly thanks to important drivers. Mr. Dinh assessed that 2024 has witnessed a clear change compared to the difficult period of 2022 and 2023. These improvements come from preferential credit packages for social housing, amendments to the 2023 Land Law and the Law on Real Estate Business, as well as policies to encourage investment in industrial real estate and resort tourism.
According to research from CBRE Vietnam, in Hanoi, the supply of apartments in the first 6 months of 2024 reached more than 10,840 units from 17 projects, the highest number since 2020. Purchasing power also increased sharply, with the number of apartments sold in the first half of 2024 exceeding the whole of 2023. Meanwhile, the website Batdongsan recorded a 32% increase in private house prices compared to the beginning of 2023, mainly due to high apartment prices and scarce supply, causing many people to turn to looking for private houses at prices ranging from 2-4 billion VND.
Mr. Nguyen Van Dinh explained that the gap between supply and demand is the main reason for the increase in real estate prices in recent times. "The market has been suppressed due to the pandemic and crisis, and now it is starting to explode when new projects are launched," Mr. Dinh emphasized. He also expects 2025 to be a boom year for the market when institutional "bottlenecks" are removed, helping to increase supply, reduce supply-demand pressure, and at the same time adjust prices in a more stable direction.
Stocks 2025: Long-term or short-term choice?
Regarding the stock market, Mr. Le Duc Khanh, Director of Analysis at VPS Securities Company, forecasts that the VN-Index in 2025 could increase by 15-20%, or even higher, thanks to expectations from GDP growth, import-export and market upgrade. According to Mr. Khanh, this is the right time for investors to buy high-quality stocks with a long-term vision. However, he also noted that the market will increase in stages with adjustments, requiring investors to be flexible in their strategies.
For the swing investor group, Mr. Khanh recommends focusing on stocks of enterprises with high business results, belonging to specific industries or in the process of restructuring.
Mr. Nguyen Viet Duc - Director of Digital Business at VPBank Securities Company (VPBankS) - emphasized that policy and trend factors will be the main drivers for the market in 2025. He predicted a clear recovery of real estate, especially in the North and a comeback in the South. Industries such as energy, oil and gas and energy transportation are also expected to benefit from trade policies and import-export balance with the US.
“Real estate purchasing power is still very large, so businesses that own large land funds in industrial and civil real estate will benefit significantly,” Mr. Duc commented.
