Daily Real Estate Briefing: Major Projects Accelerate as Urban Planning and Interest Rates Shift

Vietnam’s real estate market recorded a series of notable developments in major cities. In Da Nang, the city received an application seeking approval in principle for an infrastructure construction and business project at functional area No. 7 within the Free Trade Zone, covering approximately 276 hectares. In Bac Ninh, Vingroup was allocated and leased more than 112 hectares of land in the first phase to develop an urban area of nearly 269 hectares, with total investment estimated at VND 40.125 trillion and a planned population of 33,000. Meanwhile, Ho Chi Minh City approved the auction plan for three land lots in the Cho Lon area on Nguyen Trai, Ngo Quyen and Nguyen Thi streets, with starting prices of VND 15-16 billion. Dai Quang Minh also proposed studying a 246.5-hectare TOD plan around Thu Thiem Station, integrating the development with stations and depots while creating architectural highlights for the administrative and international financial centers.

Urban planning and development activities are also being accelerated. Hanoi plans to prepare 81 detailed plans to concretize the capital’s master plan with a 100-year vision, including 34 new planning schemes and approximately 22 zoning plans prioritized for earlier completion. The city also required that no new high-rise residential buildings be added within 3km of the Tran Nhat Duat, Tran Quang Khai and Tran Khanh Du roads along the Red River dike, except in areas involving the renovation of old apartment buildings. The Yen Ky Cemetery Park project, which has been delayed for seven years, is speeding up resettlement procedures for 111 eligible households receiving more than 20,200 square meters of land. In Nghe An, eight surplus public properties are being offered for lease, including the former provincial People’s Court headquarters, which has a starting rent of more than VND 528 million per year for a five-year term. The Viet Ha Beer factory at 254 Minh Khai has also been included in a list of 58 facilities subject to relocation because they do not conform to planning.

In the market, outstanding credit for real estate business activities exceeded VND 2.5 quadrillion as of June 30, while private banks held the largest home-buying loan balances in the system. Lower interest rates and an expected improvement in supply toward the end of the year may support the market, but purchasing power, home prices and long-term repayment capacity remain key factors for buyers to consider. Apartment management issues also continue to attract attention, ranging from ownership and safety concerns involving parking and charging spaces for electric cars to the handling of pets that cause pollution. In the resort and premium segments, Alora Nha Trang was launched at the Libera Nha Trang resort urban area, while Diamond Sky apartments at Van Phuc City were presented as benefiting from major infrastructure projects such as National Highway 13, Metro Line 3B and Hang Xanh TOD. Practical housing tips, including ways to reuse old pillowcases and improve overlooked bedroom details, along with soaring rents in San Francisco amid the artificial intelligence boom, also drew interest.