Latest Trends in Vietnam's Real Estate Market in 2024 — Focusing on Vietnam's Economic Recovery, the Drivers of Rising Property Prices, and FDI Investment Trends
Foreign lawyer admitted in Japan and Vietnam
Kazuya Mori, Senior Advisor to the firm (Japanese law)
NEXORA Law Firm — Managing Attorney
Attorney admitted in Vietnam
Mediator, Bankruptcy Trustee, Outside Statutory Auditor
Table of Contents
01 - Real Estate Market Hotspots Across Vietnam's Regions in 2024
02 - Key Drivers of Rising Real Estate Prices
03 - The State of FDI in the Real Estate Sector
Vietnam's economy has been on a strengthening recovery track since the start of 2024, and the real estate market is regaining momentum along with it. This article, prepared by a Vietnamese attorney with hands-on practice experience, examines the background to rising real estate prices in Vietnam, the latest trends in foreign direct investment (FDI) — including from Japanese companies — and points of interest by sector, including office, residential, and industrial park real estate. This is an ideal guide for readers searching for information on "rising real estate prices in Vietnam," "2024 FDI trends in Vietnam," "Vietnam's economic recovery and real estate," and "investment in Vietnam's industrial parks."
01 - Real Estate Market Hotspots Across Vietnam's Regions in 2024
1‐1
Hanoi: A Sharp Rise in Housing Prices
Hanoi has seen a particularly pronounced rise in housing prices.
· According to housing price indices, as of the third quarter of 2024, the average price across 150 major real estate projects reached approximately VND 60 million (roughly JPY 330,000) per square meter — a 64% increase compared to the second quarter of 2019.
· Despite an increase in new supply, demand continues to outpace supply, and prices for both budget and luxury apartments continue to rise.
1‐2
Ho Chi Minh City: A Stable Market at High Price Levels
In the Ho Chi Minh City real estate market, supply remains limited and initial sale prices have stabilized at high levels. In particular, in outlying areas beyond the urban core, although new supply increased in 2024, prices rose only modestly — 3% to 5% year-on-year.
1‐3
Da Nang: A Tourism City Driving Strong Demand-Supply Balance
In Da Nang, more than 50% of new supply is transacting at prices above VND 80 million (roughly JPY 440,000) per square meter. Even so, demand specific to a tourism-driven city continues to support active real estate transactions.
02 - Key Drivers of Rising Real Estate Prices
Several structural factors continue to drive up real estate prices in Vietnam.
2‐1
Supply Shortage
Over the past several years, many real estate projects have faced legal obstacles or difficulty securing financing. In addition, a number of developers have faced penalties or arrest over fraudulent fundraising and corporate bond issuance, and obtaining the licenses needed to develop new projects remains difficult. As a result, many projects have been delayed or suspended, and the resulting supply shortage is driving up prices across the market as a whole.
2‐2
Rising Land-Related Costs
· The application of Vietnam's new land price schedules and valuation methods has pushed up land costs.
· Land use right auctions in certain areas have seen winning bids reach several times the starting price, pushing up price levels in neighboring areas and the market as a whole.
2‐3
Speculative Behavior and Market Manipulation
· Some real estate brokers engage in "price inflation" and "price manipulation," undermining market transparency.
· Brokers lacking professional expertise and legal knowledge pursue short-term gains through opaque transactions.
2‐4
Shifting Investment Sentiment
Amid economic uncertainty, real estate is increasingly viewed as a safe investment, and housing and land are increasingly chosen as a "safe haven for capital."
03 - The State of FDI in the Real Estate Sector
In 2024, Vietnam has further strengthened its position as an attractive destination for foreign direct investment (FDI). Both total registered capital and disbursed capital grew year-on-year, and the real estate sector has emerged as the second-largest destination for investment after manufacturing.
3-1
FDI Statistics
Total registered capital: USD 24.78 billion
· As of the end of September 2024, total registered FDI increased 11.6% year-on-year.
· This figure includes new investment projects, capital adjustments, and share acquisitions by foreign companies, reflecting strong interest in the Vietnamese market.
Disbursed capital: USD 17.34 billion
· Disbursed FDI increased 8.9% year-on-year.
· Manufacturing and real estate account for a particularly high share.
Investment by sector:
· Manufacturing: USD 13.96 billion, representing 80.5% of the total.
· Real estate: USD 1.43 billion, representing 8.3% of the total — the second-largest sector after manufacturing.
3-2
Impact on the Real Estate Sector
Economic growth and infrastructure development:
As expressways, urban rail systems, and urban redevelopment projects advance, demand in the real estate sector continues to rise.
Improving investment environment:
The 2023 Law on Housing, the 2023 Law on Real Estate Business, and the 2024 Land Law have strengthened the legal framework, making it easier for foreign investors to enter the market.
Stable market demand:
Vietnam's demographics — in particular, urban population concentration and the expanding middle class — continue to underpin the real estate market.
Inflow of skilled professionals:
As FDI-backed foreign enterprises expand their presence, the number of expatriate professionals and managers has grown, driving growth in the serviced apartment market.
Growing information dissemination
Japanese brokers and real estate management companies, among others, are increasingly disseminating information about investment opportunities in Vietnamese real estate. In addition, the relaxation of cross-border banking rules has made it possible for individuals residing abroad to hold and invest in real estate in Vietnam.