Three Driving Forces for Vietnam’s Real Estate Market in 2025
Three key drivers will propel Vietnam’s real estate market to strong growth in 2025: new legal reforms, a surge in foreign direct investment (FDI), and the aggressive land acquisition race among major corporations. The combination of these three factors is expected to not only create a more dynamic market but also foster long-term sustainable development.
Following the recovery trend of 2024, Vietnam’s real estate market in 2025 is forecasted to enter a more promising phase as three major laws— the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law—are set to take full effect. These legislative changes will help remove existing legal bottlenecks, create a transparent business environment, and enhance investor confidence.
One of the most notable changes is the 2024 Land Law, which eliminates the outdated land price framework, allows for annual updates of land price lists, and grants district-level authorities greater control over land valuation. These adjustments are expected to improve land allocation processes, optimize land usage, and increase state revenue. Additionally, pricing land based on market principles will enhance transparency, minimize speculation, and boost liquidity in the real estate sector.
The 2023 Real Estate Business Law introduces stricter regulations on subdividing and selling land plots in 105 cities and towns—expanding by 81 localities compared to previous laws. Moreover, the new regulations on construction, management, and operation of housing information systems will ensure better integration with the national land database, forming the foundation for e-Government development. According to the Ministry of Construction, these measures will prevent real estate "bubbles," curb speculation, and stabilize market pricing, thereby fostering sustainable growth.
FDI Inflow and M&A Boom
In addition to favorable legal frameworks, the sharp rise in FDI is another major driver of real estate growth in 2025. In 2024, registered FDI in the real estate sector reached approximately $6.3 billion, accounting for 16.5% of total foreign investment in Vietnam—an increase of over 35% compared to 2023. Newly registered real estate investments alone exceeded $3.7 billion. The largest foreign investors come from Singapore, Japan, South Korea, the U.S., and Europe.
Mergers and acquisitions (M&A) in the real estate sector have also seen significant growth. According to the Vietnam Association of Realtors (VARS), the total value of 13 major real estate M&A deals last year exceeded $1.8 billion, with the participation of both foreign and domestic corporations. Vietnam ranked second in Southeast Asia in terms of real estate M&A transaction value growth, recording a nearly 46% increase year-on-year, second only to Indonesia.
In 2025, real estate M&A activity is expected to accelerate as the corporate bond market stabilizes and the new Land Law takes effect. The clarified land valuation methodology and updated land use regulations will improve market transparency, boosting investor confidence and driving larger M&A deals.
Nguyen Le Dung, Head of Brokerage and Investment at Savills Hanoi, forecasts that in 2025, foreign capital inflows into the real estate sector will increase significantly, diversifying investments and enhancing the quality of various market segments. Foreign investor demand is particularly strong in residential properties, industrial rental land, warehouses, ready-built factories, and high-tech industrial infrastructure, driven by Vietnam’s potential as a global manufacturing hub.
The Land Acquisition Race and the Growth of Satellite Cities
One of the most prominent trends in 2025 is the fierce competition among major real estate corporations to expand their land banks. Since late 2024, many large developers have been actively acquiring land through research, cooperation, and investment proposals in high-potential provinces and cities.
Vingroup, one of Vietnam’s leading real estate firms, has proposed developing a new urban area in Northwest Bac Ninh (Zone 1) with an estimated investment of over 44.5 trillion VND (approximately $1.8 billion) on nearly 270 hectares of land. The group is also planning a Mekong Resort City project in Hau Giang, covering nearly 3,000 hectares with an expected total investment of $6.2 billion.
Similarly, Sun Group has proposed two new urban development projects covering nearly 500 hectares in Tien Du District and Tu Son City, Bac Ninh Province. In the southern region, the group has also proposed a series of large-scale projects, including the 400-hectare Thanh Da Urban Area (Binh Thanh District), the 400-hectare National Cultural and Historical Park (Thu Duc City), the 450-hectare Safari Cu Chi Ecotourism Park, and the 212-hectare Rach Chiec Sports Complex (Thu Duc City).
“Nam Long currently holds a clean land bank of approximately 685 hectares, sufficient for product development over the next five years. However, we are still aggressively acquiring agricultural land, directly purchasing properties, and pursuing M&A deals for clean projects. Beyond our key market in Ho Chi Minh City, we will continue expanding into neighboring provinces in the coming years,” he said.
The expansion of satellite cities is becoming increasingly evident as major infrastructure projects such as Ring Road 2, Ring Road 3, highways, airports, and metro systems take shape over the next 2–3 years. These developments will not only enhance connectivity with central areas but also create new growth drivers for suburban real estate markets.
“Satellite land banks will become more sought after, but clean land may no longer be as accessible as before,” the Nam Long CEO concluded.
With these three critical driving forces, Vietnam’s real estate market in 2025 is poised for a new cycle of robust and sustainable development.