Vietnam Real Estate & Mortgage Market Size (2024 - 2029)

Vietnam Real Estate & Mortgage Market Analysis

The Vietnam Real Estate & Mortgage Market size is estimated at USD 47.59 billion in 2024, and is expected to reach USD 87.46 billion by 2029, growing at a CAGR of 12.94% during the forecast period (2024-2029).

• In 2024, Vietnam's real estate and mortgage market is undergoing a significant transformation, spurred by regulatory reforms and evolving consumer preferences. Recent approvals of key legislations, such as the Real Estate Business Law, Housing Law, and Land Law, are poised to boost transparency and attract investments. Set to be implemented in August 2024, these laws aim to cultivate a more investor-friendly environment, bolstering both domestic and foreign confidence. Consequently, industry insiders are predicting a strong resurgence in the real estate sector, especially in the latter half of 2024.
• Market performance data from Batdongsan.com.vn reveals a notable uptick in property searches in major cities. In Hanoi, land plot inquiries jumped 118% year-on-year, and apartment searches climbed 46% in the first half of 2024. Ho Chi Minh City mirrored this trend with a 45% rise in land searches, underscoring a burgeoning interest in property investments. This surge in inquiries indicates a growing optimism among buyers regarding the market's recovery.
• Yet, amidst this buoyant interest, the residential market grapples with dwindling transaction volumes. The Ministry of Construction noted a 30% drop in total residential transactions in Q2 2024, attributed to soaring prices and a wary buyer sentiment. In contrast, land transactions witnessed a robust 28% uptick during the same timeframe. This divergence underscores a market shift, with buyers pivoting from residential properties to land investments amid economic uncertainties.
• The mortgage landscape is also adapting to these market shifts. The State Bank of Vietnam highlighted a mere 4.45% growth in housing loan credits in the first half of 2024, a deceleration from previous years. Escalating housing prices and inflation have tightened buyers' budgets, prompting many to adopt a cautious stance on mortgage commitments. Yet, developers are countering this trend with attractive mortgage rates and extended payment plans to invigorate demand.
• Given the ongoing regulatory changes and a potential uplift in buyer sentiment as economic conditions stabilize, various market segments may witness growth. The government's dedication to infrastructure and social housing projects further bolsters this outlook. As these elements align, stakeholders are urged to stay alert, adapt to the evolving landscape, and seize emerging opportunities in Vietnam's real estate arena.

Vietnam Real Estate & Mortgage Industry Segmentation

Real estate is private property in the form of buildings and land. Real estate can be used for residential, commercial, or industrial purposes. The real estate market refers to the selling of real estate services by entities (organizations, sole traders, and partnerships) that rent, lease, and allow the use of buildings and land.

The real estate and mortgage market in Vietnam is segmented by type (residential, retail, logistics/industrial, hospitality, and office), value (premium, luxury, and affordable), and key cities (Ho Chi Minh City, Hanoi, Quang Ninh, and Da Nang). The report offers the market sizes and forecasts in value (USD) for all the above segments.