The real estate market in Ho Chi Minh City and neighboring provinces is in a "transformation" phase and is starting to regain its "form" with positive signs of recovery after a period of stagnation. In particular, the merger of Ho Chi Minh City, Binh Duong and Ba Ria - Vung Tau is expected to open a new growth period for the regional real estate market.
Positive change
Ms. Ai Nghi - a long-time real estate investor living in Thu Duc City, Ho Chi Minh City - has recently spent a lot of time researching land plots in Binh Duong province, especially along Highway 13, bordering Ho Chi Minh City. According to her, land prices here are constantly increasing because this area is planning to expand roads, especially when Binh Duong and Ho Chi Minh City are considered a unified entity, administrative boundaries are no longer an obstacle. For that reason, the 700 m² plot of land (including 150 m² of residential land) that she had hesitated to buy for 3.7 billion VND a month ago, the landowner has now increased the price to 4.3 billion VND.
It is no coincidence that The Felix project in Thuan An City, Binh Duong Province, by investor C-Holdings, attracted many customers to register to reserve a place after just one livestream session by the company's Chairman of the Board of Directors - Mr. Nguyen Quoc Cuong. According to Mr. Tran Van Hung, Sales Director of C-Holdings, the fact that Binh Duong and Ho Chi Minh City will no longer have a border from July 1 is one of the factors that attracts apartment buyers at the project. Specifically, the company has only announced more than 1,000 apartments, but the entire basket has been reserved.
Not only apartments, the resort real estate market is also showing signs of recovery. The fact that major investors such asSun Group and Ixora are stepping up project implementation in Ba Ria - Vung Tau shows that confidence is returning. Investors all expect this area to become the "backyard" of tourism in Ho Chi Minh City thanks to its convenient traffic connection advantage. Mr. Dang Quoc Viet, General Director of Smartland Company - a unit specializing in distributing high-end resort real estate products, said that although the market has not recovered as strongly as before the pandemic, current projects are well-invested, from reputable investors with transparent legal status and located near the center of Ho Chi Minh City are highly appreciated. According to Mr. Viet, the coastal urban model combining housing and resort will be the trend in the coming years.
In addition, the need to develop industrial zones has created a unique direction for each locality in shaping the real estate segment. Binh Duong is a typical example when determining its strength as industrial development, thanks to which housing projects combining industrial zones and integrated urban areas here are increasing, attracting especially foreign investors.
Ho Chi Minh City's real estate market has a lot of room for development after the administrative boundary merger. Photo: HOANG TRIEU
Mr. Thomas Rooney, Deputy Director of Savills Hanoi Industrial Consulting, believes that if the merger and new planning process is carried out properly, it will pave the way for the formation of integrated urban-industrial ecosystems, creating attraction for increasingly "selective" foreign investment capital. "The merger of administrative units is not only a change in boundaries but also aims to streamline the apparatus, reduce fragmentation in planning and increase competitiveness between localities," this expert analyzed.
In addition, the expansion of administrative boundaries will help the new Ho Chi Minh City plan more large industrial parks, creating favorable conditions for businesses to find locations to build factories, no longer worrying about the lack of industrial land. In particular, after the merger, localities can divide zoning more clearly, supporting the development of specialized industrial parks. "Areas that are already bright spots for investment, after the merger, will have the opportunity to complement each other in terms of infrastructure, labor resources and development orientation. This will help improve competitiveness and position in the global value chain" - Mr. Thomas commented.
Resonance in planning and infrastructure
Mr. Tran Quang Trung, Director of Business Development at OneHousing, assessed that 2025 will mark a completely different phase of the Vietnamese real estate market. It is not only a recovery after a period of stagnation but also a transition to a new growth phase, driven by macroeconomic factors, reasonable regulatory policies and changes in investment behavior.
In addition to the administrative merger factor, the market is also supported by loose monetary policies, cooled lending interest rates, large credit packages, and strong increases in public investment and foreign direct investment (FDI). However, Mr. Trung also warned that merger information could create a FOMO (fear of missing out) effect, causing investors to rush to buy land, leading to risks if prices and real values are not well controlled. Therefore, buyers need to be alert, consider liquidity, financial capacity, and short-term and long-term value of real estate before investing.
Mr. Pham Lam, Vice President of the Vietnam Real Estate Brokers Association, said that administrative mergers create great opportunities for real estate developers thanks to the resonance of planning and infrastructure. Investors can access more land funds and develop new areas with great potential. In the short term, the market will see investment "hot spots" in places with strong infrastructure investment, new administrative centers or re-planned areas. However, investors still need to stick to long-term strategies and avoid being caught up in the crowd mentality.
The merger of provinces not only creates new development space but also helps to deploy infrastructure connections synchronously, legal procedures become more consistent and faster. This helps investors access and implement projects more easily.
However, in the short term, Mr. Thomas Rooney warned that the change of boundaries will lead to certain challenges, including adjusting land use planning, legal procedures related to the environment, construction and investment. But in the long term, this will be a great opportunity to restructure the legal framework, improve transparency and administrative efficiency, help save time, and increase investor confidence.
Buyers are no longer hesitant
Since April, many investors have simultaneously launched projects in Ho Chi Minh City and neighboring areas with a high number of bookings. According to Mr. Ta Trung Kien, Director of News Property Company, investor confidence is returning thanks to clear infrastructure prospects and rapid completion progress of key projects such as Ring Road 3, Ben Luc - Long Thanh Expressway, and routes connecting Nha Be, Nhon Trach, Dong Nai and Ba Ria - Vung Tau.
A notable bright spot is the apartment transfer market. Data from the One Mount Group Center for Market Research and Customer Insights shows that in April 2025, the total number of secondary transactions nationwide reached about 7,600 units, an increase of 67% compared to the previous month. The apartment segment alone recorded 3,400 units, the highest level in 12 months and nearly 3 times higher than the "bottom" level in February.
Mr. Tran Minh Tien, Director of the Center for Market Research and Customer Insights of One Mount Group, said that the recovery of the secondary market comes from three factors: real demand continues to be strong, especially from young people; investment cash flow is withdrawing from illiquid land to return to apartments with clear legal status; seasonal factors cause the number of transactions to concentrate in March and April. Mr. Tien also emphasized that today's buyers do not only focus on price or area but also consider infrastructure connectivity, quality of life and rental potential.
At the same time, a series of large projects that had legal problems are being resolved, paving the way for the process of issuing pink books and re-implementation. In Ho Chi Minh City, Novaland has resolved important problems related to planning and land use fees at projects such as Richstar, Botanica Premier, Victoria Village, Lakeview City and The Water Bay. In Dong Nai, the province has also approved planning adjustments for areas in Bien Hoa City, creating legal conditions for projects such as Aqua City, Long Hung, and Waterfront to continue developing.
According to Mr. Tran Khanh Quang, General Director of Viet An Hoa Company, the current positive signal comes from the synchronous coordination between management policies and market confidence. Mid-range apartment projects in Ho Chi Minh City and the suburbs have recorded good bookings thanks to flexible sales policies and preferential bank interest rates. "Buyers are no longer hesitant, because they clearly see that the market is going up as expected from the beginning of the year," Mr. Quang commented.
Pham Dinh
Source: https://nld.com.vn/dong-luc-moi-cho-thi-truong-bat-dong-san-196250623210303296.htm
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