The real estate market in Hanoi and Ho Chi Minh City (HCMC) is showing signs of stabilization after Tet 2025. Recent data from Batdongsan.com.vn indicates that apartment prices have slightly decreased. While this may seem like good news for buyers, the market remains complex and requires careful analysis.

This article provides an in-depth review of current price trends, key influencing factors, and expert recommendations on whether now is the right time to buy an apartment in Hanoi or HCMC.

1. Apartment Price Trends in Hanoi & HCMC

a. Current Price Data (February 2025)

As of early February 2025, average listing prices for apartments in the two largest cities in Vietnam are:

  • Hanoi: 62 million VND/m² (down from 63 million VND/m² in January 2025)
  • HCMC: 57 million VND/m² (down from 60 million VND/m² in January 2025)

This slight decline suggests that the market may be undergoing a temporary correction rather than a significant downturn. However, it is crucial to monitor trends in the coming months to determine if prices will stabilize or decrease further.

b. Market Activity & Buyer Behavior

Although prices have adjusted slightly, real estate market activity remains strong:

  • The number of property searches and listings is increasing.
  • Many potential buyers are waiting for further price adjustments before making a purchase.
  • Investors remain cautious due to global economic uncertainties affecting the financial markets.

2. Key Factors Influencing Apartment Prices

Several factors contribute to the recent price adjustments and market dynamics:

a. Buyer Sentiment & Demand Trends

  • End-users (homeowners) are waiting to see if the market offers better opportunities.
  • Investors are more hesitant due to inflation concerns and global economic fluctuations.
  • Developers are actively introducing new incentives to encourage purchases.

b. Developer Incentives & Mortgage Support

To attract buyers, developers and banks are offering attractive financing packages, such as:

  • Home loan support covers 80-85% of the apartment value.
  • Low-interest rate mortgages for 3-5 years.
  • Flexible payment plans and extended loan terms.

However, financial experts recommend that buyers should:

  • Have at least 30-40% down payment before taking a loan.
  • Ensure a stable income for the next 3-5 years to manage mortgage repayments effectively.

c. Economic Factors & Affordability Challenges

Affording an apartment remains a significant challenge for young buyers. Historical data on affordability highlights this issue:

  • 2004: A Gen X buyer needed 31.3 years of income to afford a 60m² apartment priced at 600 million VND, with an interest rate of 7.4%.
  • 2014: A Millennial (Gen Y) needed 22.7 years of income for a similar apartment at 1.5 billion VND, while interest rates dropped to 6%.
  • 2024: A Gen Z buyer requires 25.8 years of income for the same apartment, now priced at 3 billion VND, with interest rates at 4.5%.

These figures show that while interest rates have declined, real estate prices have outpaced income growth, making homeownership increasingly challenging.

3. Buy Now, Wait, or Rent?

Buy Now If:

  • You have at least 30-40% down payment ready.
  • Your income is stable for the next 3-5 years.
  • You found a well-priced property in a prime location.

Wait If:

  • You expect better price adjustments or an increase in new supply.
  • You are unsure about your financial stability in the coming years.

Rent If:

  • You need more time to save for a larger down payment.
  • You want to evaluate different locations before committing to a purchase.

4. Expert Insights on the Market Outlook

According to Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, the most crucial factor in buying real estate is financial planning, not timing the market. He advises:

  • Financial stability is key – Buyers should ensure they can handle mortgage payments without financial strain.
  • Long-term affordability – Plan your finances for at least 3-5 years ahead.
  • Location & lifestyle needs – Consider proximity to work, schools, and amenities when choosing a property.

Additionally, market analysts predict that:

  • Apartment prices will likely remain stable throughout 2025, with small fluctuations.
  • The supply of new apartments is expected to increase, potentially leading to more price adjustments.
  • Government policies on credit, taxation, and real estate regulation will impact market trends.

Conclusion: Is Now the Right Time to Buy?

The post-Tet apartment price stabilization in Hanoi and HCMC presents an opportunity for well-prepared buyers. However, market conditions remain uncertain, making it essential to analyze trends and assess financial readiness before making a decision.

If you’re considering buying, ensure you have:

  • A strong financial foundation
  • A clear long-term plan
  • Thorough market research