The Vietnamese real estate market is entering a promising phase of recovery and growth, thanks to significant legislative changes that aim to establish a more robust and transparent legal foundation for the sector. The recent amendments to key laws — including the revised Housing Law and Land Law — have set the stage for a sustainable transformation in the market, offering hope after a challenging period.

On October 10th, the National Economics University, in collaboration with the Ministry of Natural Resources and Environment and the Ministry of Construction, hosted a national scientific conference titled "Vietnam's Real Estate Market in the Context of Amending the Land Law, Housing Law, and Real Estate Business Law." This gathering of experts, government officials, and industry stakeholders highlighted the key trends and future outlook for Vietnam's real estate market, particularly in light of the new legal frameworks that are expected to address long-standing challenges in the industry.

Challenges of the Past, Opportunities Ahead

Professor Phạm Hồng Chương, President of the National Economics University, opened the conference by acknowledging the difficulties faced by the real estate market in 2022 and 2023. The sector was heavily impacted by a range of legal and regulatory issues, creating bottlenecks that slowed down growth and development. Unclear land-use rights, slow approval processes for new projects, and fragmented regulations had caused disruptions across the market. However, the passage of several crucial pieces of legislation — including the 2023 amendments to the Real Estate Business Law and Housing Law, as well as the 2024 revision of the Land Law — is expected to resolve many of these obstacles. These legal changes, which came into effect five months earlier than initially anticipated, are seen as the final pieces of the puzzle in improving Vietnam’s real estate regulatory landscape. The earlier-than-planned enactment underscores the government's commitment to accelerating reforms and restoring confidence in the market. With clearer legal frameworks, the real estate sector is better positioned to attract both domestic and international investors, spurring development across various segments.

A Shift Toward Sustainability and Balance

The introduction of these laws marks a turning point, with the market now expected to recover in a more sustainable and balanced manner. Professor Chương emphasized that the revisions provide a more comprehensive set of guidelines for stakeholders in the market, including property developers, buyers, and investors. He noted that while the government has made concerted efforts to streamline the legal framework, the full impact of these laws will only be felt over time as they are implemented and integrated into the daily operations of the real estate sector. One of the most pressing issues discussed at the conference was the current imbalance between supply and demand in the housing market. According to Professor Hoàng Văn Cường, a senior lecturer at the National Economics University and a member of the National Assembly’s Finance and Budget Committee, the supply of new housing projects, particularly affordable housing and social housing, remains limited. This shortage is contributing to rising property prices in major cities like Hanoi, where demand far outpaces available inventory. In contrast, the southern regions of Vietnam, including Ho Chi Minh City, have seen more stable pricing, with apartment prices rising by only 6% in 2023 despite weaker demand.

Urbanization and Economic Growth to Drive Real Estate Demand

Looking ahead, several factors are expected to drive increased demand for real estate in Vietnam, particularly in urban areas. Rapid economic growth and the acceleration of urbanization are central to this trend. Vietnam's urbanization rate has been steadily climbing as more people move to cities in search of better job opportunities and living conditions. This shift is expected to continue, creating a vibrant demand for real estate across multiple segments — from residential properties to commercial and industrial developments. Professor Cường predicted that as the urbanization process intensifies, the demand for real estate will rise, especially in major metropolitan areas like Hanoi, Ho Chi Minh City, and other rapidly growing urban centers. With the urban population expected to increase significantly in the coming years, both the residential and commercial real estate markets are likely to see heightened activity.

Government's Role in Creating a Conducive Environment

A key theme of the conference was the role of the government in fostering a supportive environment for real estate growth. The new legal framework is only part of the solution. Local authorities and city planners are increasingly focusing on long-term urban development strategies that align with the country’s broader economic goals. In recent years, provinces and cities have worked hard to finalize local and regional master plans, which are essential for ensuring that infrastructure, transportation, and housing development projects are coordinated and aligned with market needs. This strategic approach to urban planning is expected to unlock new opportunities for growth by providing a clear roadmap for developers and investors. Furthermore, the government's focus on reducing bureaucratic hurdles and speeding up approval processes for real estate projects will help address some of the historical inefficiencies that have hampered the market.

Outlook for a Sustainable Recovery

With these legal and policy changes in place, the outlook for Vietnam's real estate market is optimistic. The combination of a clearer regulatory environment, rising demand driven by economic growth and urbanization, and government efforts to streamline project approvals sets the stage for a sustainable recovery. However, challenges remain, particularly in ensuring that the supply of affordable housing keeps pace with demand. To address this, stakeholders in the real estate industry will need to work closely with government agencies to ensure that the benefits of the new legal framework are fully realized.

As the market enters this new phase, there is a growing sense of optimism that Vietnam’s real estate sector will not only recover from the recent downturn but will emerge stronger and more resilient, poised for sustainable growth in the years to come.