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Vietnam’s residential property market is facing a growing affordability challenge, particularly in Hanoi where mid-range apartments have nearly disappeared. New launches are priced above VND60 million per square metre, with many pushing past VND100 million, leaving middle-income buyers priced out.In Ho Chi Minh City, however, the secondary market is rebounding as long-standing legal hurdles are resolved. Older apartments, once undervalued, are now seeing price increases of 15 to 24 per cent, with popular projects such as Saigon Royal and The Tresor gaining strong momentum.This shift highlights the dual reality of Vietnam’s property landscape: rising barriers for first-time buyers but renewed opportunities for investors and sellers in the secondary market.Explore the full analysis and market updates from other countries here!Download

Vietnam's residential real estate sector is witnessing a strong revival in foreign investment, with FDI reaching USD 4.8 billion in the first half of the year—a 2.4-fold increase from the same period in 2024. While newly registered capital accounted for 24% of this total, much of the growth stemmed from capital adjustments, reflecting sustained investor confidence. Singapore led the charge with over USD 2.4 billion in investment, followed by China, Sweden, and Japan. This surge comes despite broader global economic challenges, underscoring Vietnam’s continued appeal due to its stable macroeconomic environment, investor-friendly policies, and promising long-term prospects. Infrastructure advancements are a key driver, with national megaprojects like the North-South Expressway and Long Thanh International Airport boosting connectivity and fueling interest in suburban and secondary markets. Additionally, the upcoming Telecommunications Law 2023, set to take effect in early 2025, is expected to ease regulatory constraints and further enhance the country’s investment landscape. While short-term uncertainties remain, Vietnam’s real estate market stands out as a strategic choice for investors targeting sustainable growth in Southeast Asia. Download the full newsletter for expert analysis and market updates from other countries.Download

Written by Dustin Trung Nguyen, Head of IQI VietnamVietnam Real Estate Market OverviewHo Chi Minh City (HCMC) has announced a bold vision to create a US$7 billion international financial hub in District 1 and Thu Thiem Urban Area, with the initial nine-hectare phase centered in Thu Thiem. This strategic move includes regulatory infrastructure and talent development, signaling elevated residential interest in the Thu Duc area. However, it also adds speculation risk, as housing prices—already high—are rising fast. In Q1 2025, property prices in some regions soared 20-40% year-on-year, and Vietnam’s house price-to-income ratio now stands at 24.7–26, far exceeding the global affordability benchmark of 15.On the commercial side, Hanoi’s mid-tier serviced apartment rents climbed 14% in Q1 to US$25/sqm/month. Meanwhile, Vietnam’s legal stance on short-term rentals is under scrutiny. Though current law restricts Airbnb-style leases, legal gaps remain—no precise definitions of “short-term” exist, and many argue such bans infringe on homeowners’ rights as outlined in the Civil Code. Regulatory revisions are likely, with implications for both local landlords and the broader property leasing market.Click for more info!Download

Written by Dustin Trung Nguyen, Head of IQI VietnamVIETNAM REAL ESTATE MARKET OVERVIEWResidential SectorHousing Supply in Ho Chi Minh City Remains LimitedThe residential property supply in Ho Chi Minh City (HCMC) remained constrained in the early months of 2025, with only 350 condominium units and 58 ready-built townhouses and villas launched, according to CBRE Vietnam.All new launches came from subsequent phases of existing projects, although there have been notable improvements in resolving legal bottlenecks. Duong Thuy Dung, Executive Director of CBRE Vietnam, noted that certain projects—such as a condominium development in District 7—may soon be able to sign sales contracts. Meanwhile, long-delayed housing developments in Thu Duc City, handed over between 2016 and 2019, are expected to finally issue ownership certificates, helping to restore buyer confidence.Data from the municipal People's Committee indicates that approximately 38,000 apartments are expected to receive title deeds in 2025. Since late 2024, new sales activity has resumed in Thu Duc after a two-year halt due to regulatory challenges.Integrated urban township models on HCMC’s outskirts have gained traction, supported by accelerated investment in key infrastructure projects. Experts note that the western region of the city—home to several major developers—is witnessing strong preparations for new launches and robust reservation demand. One urban project near Tan Son Nhat Airport in Tan Phu District recorded over 1,000 reservations within just ten days of its launch.In neighboring Long An Province, investor interest is growing. A green urban township in Ben Luc, near Binh Chanh District, is currently accepting reservations, while a nearly 200-hectare urban area in Duc Hoa has recently broken ground and is expected to launch later this year.The residential market in western HCMC is projected to become increasingly vibrant in the coming quarters. In total, more than 8,600 condominium units and fewer than 1,000 ready built townhouses and villas are expected to launch throughout 2025, predominantly in the suburban zones.In the office segment, Thanh Pham, Associate Director of Research & Consulting Services at CBRE Vietnam, reported strong absorption of newly completed Grade A buildings, with over 4,000 square meters leased in Q1 2025.Commercial SectorHCMC Retail Space Fully Leased Despite High PricesRetail occupancy in Ho Chi Minh City remains near 100%, even as rental rates reach record highs and supply remains stagnant. As of November, most malls in District 1—such as Saigon Centre, Parkson Le Thanh Ton, Vincom, and Diamond Plaza—are nearly fully leased, with only limited availability on basement and upper levels.A leading F&B brand seeking to expand on Dong Khoi Street, one of the city’s most expensive retail corridors, has faced delays due to space shortages. Similarly, a coffee chain has had to revise its business strategy after being unable to secure appropriate space in central locations.“It is extremely difficult to find spacious retail areas in prime malls,” the company stated. “Most are fully occupied.”Property consultancy Avison Young Vietnam confirmed there was no new retail supply in District 1 in Q3, with existing malls at full capacity. Notably, 75% of the city’s 1.5 million square meters of retail space is located in suburban areas.The shortage of prime retail space, combined with strong demand from luxury brands, has pushed rents upward. District 1 retail rents stood at US$275–300 per square meter per month in Q3, according to Avison Young.David Jackson, CEO of Avison Young Vietnam, noted that high-end brands prefer shopping malls in central locations, making competition intense. Luxury labels like Longchamp, Lush, and Popmart have chosen District 1 for flagship stores, despite attractive offers from suburban developments.Office and Industrial Market TrendsCBRE Vietnam’s 2024 Asia-Pacific Office Occupier Survey revealed that competitive rental rates and high-quality service are key factors influencing tenant relocations. In Q1 2025, relocations accounted for 50% of tracked major lease transactions, with the information technology sector leading both in volume (25%) and leased area (31%).Meanwhile, the industrial land market in southern Vietnam maintained a stable 89% occupancy rate. The ready-built warehouse and factory segments saw continued growth, with Q1 occupancy rates reaching 72% and 89%, up 14 and 3 percentage points year-on-year, respectively.Click here now for more info!Download