Expert: The concept of real value in real estate is gradually changing

Instead of just expecting price increases, buyers assess the real value of real estate through various long-term factors, contributing to a screening phase in the market, according to Dr. Nguyen Van Dinh.

According to Dr. Nguyen Van Dinh, Vice President of the Vietnam Association of Realtors (VNREA) and Chairman of the Vietnam Association of Real Estate Brokers (VARS), the way buyers determine the value of a product is one of the notable shifts. This is happening as the market in the first six months of this year undergoes a process of screening and repositioning products to closely align with actual usage needs.

Specifically, he analyzed that in the past, real estate was evaluated mainly based on location and expectations of price appreciation. In the new cycle, these criteria remain important but are no longer enough to drive investment decisions. Buyers are increasingly concerned with legal compliance, the developer’s execution capability, usability, and the quality maintained during operation. This is the core shift changing the connotation of the concept of real value.

The change does not stem from an isolated factor but is the simultaneous result of more cautious buyer behavior, higher legal standards, and growing pressure on project development.

Dr. Nguyen Van Dinh, Vice President of the Vietnam Association of Realtors (VNREA), Chairman of the Vietnam Association of Real Estate Brokers (VARS). Photo: Provided by character

Regarding buyer behavior, the report on the Vietnam Real Estate Market in the second quarter and first six months of the year by VARS and the Vietnam Institute of Real Estate Market Research (VARS IRE) recorded about 48,000 new housing transactions, corresponding to an absorption rate of 49%. Among these, apartments accounted for 73% of the total transaction volume.

According to Dr. Nguyen Van Dinh, this result shows that demand is still present, but buyers have become more cautious and practical. Instead of relying mainly on flipping potential or expecting to benefit from price fevers, they consider more carefully what needs the asset can serve, how it can be exploited, and whether it is safe enough to hold long-term—meaning the concept of real demand needs to be understood more broadly.

Real demand is not just about buying a house to live in, but can also include asset accumulation, rental exploitation, serving family needs, or business development, provided the product fits the buyer’s affordability and creates specific utility.

The shift in buyer behavior primarily stems from the process of perfecting the legal framework. The amended Land Law, Housing Law, and Real Estate Business Law raise requirements on business conditions, project information disclosure, deposits, and financial capacity of enterprises. These regulations help limit projects that only exist on paper, while giving customers more basis to check legality and progress before making a decision.

Perspective of the Lumiere Essence Peak project. Photo: Masterise Homes

As transparency increases, a product is no longer evaluated solely by promotional information or future potential. The ability to complete procedures, execute construction, and hand over as committed have become verifiable factors, thereby directly impacting buyers’ decisions.

Along with legal compliance, project development costs are also driving a stronger screening process among businesses. Floating loan interest rates are commonly at 12-14% per year, while credit is tightly controlled. Since the beginning of this year, the application of land price tables closer to market rates has increased compensation, site clearance, and land-use fee costs. Sand and stone prices have risen by 60-100%, and steel prices have also increased sharply, continuing to put pressure on total investment capital.

In this context, financial management capability, cash flow control, clean land funds, and project execution become decisive conditions for whether projects can be implemented on schedule. According to Mr. Dinh, this factor is also the reason why the market is increasingly concentrating on the group of developers who have proven their capabilities.

Perspective of the Masteri Grand Coast project. Photo: Masterise Homes

The VARS report noted that Vinhomes, Masterise Homes, and Sun Group contributed about 43% of the total new supply launched nationwide in the first six months. This group of large, branded developers achieved an absorption rate of about 70%, significantly higher than the general average.

These figures show that the developer’s capability has become part of how the market values products. For buyers, it is not just a brand story, but also the ability to mitigate risks regarding legality, progress, and quality throughout the ownership period.

As legality and execution capability gradually become fundamental requirements, competition continues to shift toward quality of use. Buyers no longer just evaluate the house at the time of signing the contract or receiving the handover, but pay attention to the experience during the entire time of living in and exploiting the asset.

Criteria such as design, materials, green spaces, utility systems, management services, and the ability to maintain quality after handover are therefore increasingly valued. Whether utilities are operated effectively, how the residential community is formed, and whether the living environment retains its appeal over time all directly affect the long-term value of the project.

Perspective of the Lumiere Ocean Crest project. Photo: Masterise Homes

However, experts emphasize that this shift does not mean the market’s attractiveness is declining. In the first six months, Vietnam’s GDP grew by 8.18% year-on-year, the highest rate in 16 years. Total registered FDI reached 34.65 billion USD, up 61%, of which the real estate business sector attracted 5.1 billion USD, accounting for 17.9% of the total registered capital.

Mr. Nguyen Van Dinh pointed out that economic growth and investment flows continue to generate demand for housing, commercial, industrial, and logistics real estate. Along with urbanization rates, the rise of the middle class, and the need for asset accumulation, these factors help real estate maintain its role as a medium and long-term investment channel.

In this context, according to him, a product can only maintain its attractiveness when initial expectations are converted into verifiable value in reality. This factor is the foundation reshaping how buyers choose real estate and how businesses develop projects in the new cycle.