REAL ESTATE MARKET BUSTLING AHEAD OF GHOST MONTH

Việt Nam’s real estate market surged in July 2025, driven by investor sentiment before Ghost Month and major infrastructure projects marking the 80th National Day.

Apartment buildings in Thủ Thiêm, HCM City. In key urban centres such as Hà Nội and HCM City (old), interest levels rose by 11 per cent. VNA/VNS Photo

HÀ NỘI — The real estate market across Việt Nam witnessed a notable surge in activity in July 2025, driven by investor psychology ahead of the Ghost Month and the positive effects from a series of major infrastructure projects launched in celebration of the 80th anniversary of National Day (September 2).

In Việt Nam and several other Asian countries, the 'Ghost Month', the seventh lunar month, is believed to be a period of bad luck and inauspicious for buying major items such as cars and houses.

According to data from Batdongsan.com.vn, interest in both real estate for sale and for rent rose sharply, with a 13 per cent increase in the former and a 15 per cent uptick in the latter compared to June.

In key urban centres such as Hà Nội and HCM City (old), interest levels rose by 11 per cent. Notably, in the newly expanded HCM City, interest saw a stronger rebound at 13 per cent, reflecting investor optimism following the city's recent administrative merger and urban expansion.

Other provinces and secondary markets experienced an average increase of 15 per cent in interest, signaling widespread market momentum.

This spike is attributed to investors accelerating transactions before the traditionally quiet Ghost Month, coupled with renewed confidence from the Government's aggressive push in infrastructure development.

Over the past two years, real estate prices have maintained an upward trajectory. Land plots have surged by 44 per cent, while apartment prices have climbed 42 per cent compared to Q1 2024. In contrast, rental prices have remained relatively stable, with only street-front houses recording a modest 7 per cent increase.

In both Hà Nội and HCM City, the market is being led by end-user demand and long-term investors.

In Hà Nội, private houses and apartments saw interest grow by 13 per cent and 12 per cent respectively, underlining the continuing trend of real occupancy purchases.

Similar patterns were seen in HCM City, with apartments and private houses leading at 13 per cent and 11 per cent growth in interest.

Đinh Minh Tuấn, Southern Region Director of Batdongsan.com.vn, noted clear signs of recovery in the southern real estate market, particularly in HCM City.

“Interest in many projects has increased by 10-15 per cent, signaling a return of liquidity and investor confidence. The high-end segment is showing strong absorption, indicating that both real demand and long-term investment remain attractive,” Tuấn commented.

He also emphasised the critical role of infrastructure developments such as Ring Road 3, new high-speed rail links, and rising FDI flows in strengthening investor sentiment.

“We are entering a phase of selective recovery. Projects with strong legal transparency and areas with good infrastructure connectivity will be key in attracting capital, laying the groundwork for a more sustainable real estate cycle,” he added.

The broader economic environment has provided further support for real estate. Data from the National Statistics Office shows that GDP in Q2 2025 rose by 7.96 per cent, total retail sales grew by 9.3 per cent, and registered FDI increased by 8.4 per cent, creating a favorable backdrop for real estate recovery.

Of which, foreign and domestic capital has been flowing strongly into the property sector. In the first half of 2025 alone, FDI in real estate reached over US$4.8 billion, 2.4 times higher than the same period in 2024. Meanwhile, real estate credit growth at several banks has reached 20-30 per cent, significantly outpacing the overall credit growth of the banking system.

Signs of a market rebound are also visible in business dynamics. From January to July, nearly 3,000 new real estate enterprises were established, marking a 7 per cent increase, while another 3,000 businesses resumed operations - an impressive 51 per cent year-on-year rise. — VNS

Source: VNS