Southern Vietnam’s Real Estate Market 2025: The New Magnet for Investment Capital

After a prolonged period of stagnation, Southern Vietnam’s real estate market is showing clear signs of recovery, particularly in Ho Chi Minh City and neighboring provinces such as Binh Duong, Dong Nai, and Long An. Many experts believe 2025 will mark a turning point, as investment capital returns strongly, positioning the South as the new “hotspot” on Vietnam’s property map.

Ho Chi Minh City, the nation’s largest economic hub, is regaining its strong growth momentum in the 2025 real estate market

Entering 2025, Vietnam’s economy has witnessed notable progress in both policy execution and investment activities. Amid global uncertainty and a downward trend in interest rates, the Government remains steadfast in pursuing an ambitious GDP growth target of 8.5%, while ramping up public investment as a key driver to stimulate aggregate demand and enhance national infrastructure.

Vietnam’s economy in 2025 has shown positive movements in management and investment, aiming for a growth target of 8.5%

One key highlight is the administrative restructuring at the provincial level, aimed at streamlining the state apparatus, improving governance efficiency, and optimizing resources.

Since early 2025, Vietnam’s financial markets have experienced remarkable volatility. Domestic gold prices have surged by nearly 75%, reflecting a shift toward safe-haven assets amid geopolitical tensions and exchange rate fluctuations. Meanwhile, the USD/VND exchange rate listed by Vietcombank has risen by 3.4%, and by almost 7.8% on the unofficial market, underscoring growing exchange rate pressure.

At the same time, 12-month deposit rates at most commercial banks remain below 6% per annum, rendering savings less attractive. Consequently, investors have increasingly sought alternative channels to preserve and grow their assets, particularly real estate and equities.

Shifting investment flows in the property market

The real estate market has witnessed a striking price divergence across regions, especially in the apartment segment. Northern Vietnam, notably Hanoi and nearby provinces, has outpaced the South in price growth after years of lagging behind. According to Batdongsan.com.vn, Hanoi recorded the highest property price increase nationwide between 2021 and 2025, up 112%, followed by Hai Phong (+71%), Da Nang (+53%), while Ho Chi Minh City rose 42% over the same period.

Hanoi’s apartment prices have almost doubled in the past two years, prompting a growing shift of investment capital toward southern markets

By the end of Q3 2025, apartment prices in Hanoi had risen 95% compared to Q1 2023. Current prices have reached record highs, averaging over VND 100 million per square meter, with almost no listings below VND 60 million. The sharp rise has reduced potential profit margins in the North, prompting a capital shift toward the Southern market.

Overview of the southern real estate market

In terms of infrastructure, the Southern region, once heavily dependent on its river network, is undergoing a massive transformation centered around Ho Chi Minh City, which has become a vast construction site with numerous key transport projects underway. The emerging expressway network is improving inter-regional connectivity across the Southeast, notably the Ring Roads No. 3 and 4, and Ben Luc – Long Thanh and Bien Hoa – Vung Tau expressways, linking Long An, Dong Nai, and Ba Ria – Vung Tau. These routes are expected to play a crucial role in connecting Long Thanh International Airport with surrounding provinces.

To the west and south of Ho Chi Minh City, expressways to Moc Bai (Tay Ninh) and Chon Thanh (Dong Nai) are being developed, while future projects such as the HCMC – Soc Trang Expressway promise to unlock new growth potential for the entire Mekong Delta region.

Emerging segments and hotspots

According to Mr. Tran Trong Duc, CEO of Virtus Prosperity JSC, investment capital is expected to continue flowing into the Southern Key Economic Zone, particularly in provinces positioned to become new administrative and financial centers, as well as satellite cities along key infrastructure corridors connected to Ho Chi Minh City.

The most promising segments include residential land in areas benefiting from major infrastructure upgrades, including seaports, airports, and highway systems. Notable hotspots include Thu Duc (former District 9), Ba Ria – Vung Tau (now merged with Ho Chi Minh City), and Dong Nai, especially localities situated along the corridor connecting Long Thanh Airport and HCMC. These areas boast strategic locations and relatively low price baselines, offering high long-term profit potential.

Two major transport routes No. 1 and No. 2 are being developed to connect with the Long Thanh Airport project

In contrast, regions lacking infrastructure breakthroughs are likely to see slower price appreciation, both in timing and magnitude. Beyond infrastructure, another key driver for the South’s property market lies in foreign direct investment (FDI). With Vietnam’s stable macroeconomic environment and favorable trade agreements, the South has become increasingly attractive to international investors.

Conclusion

The capital inflow from the North to the South is expected to persist in the coming period, driven by two main factors: profit potential and infrastructure growth. However, it is important to note that property price increases are often localized, heavily dependent on specific project locations.

Not every investment yields equal returns. Therefore, selecting projects with strategic locations, clear legal status, and priority infrastructure development will be essential to ensure capital safety and maximize investment efficiency.