Vietnam’s real estate sector is poised for continued recovery in 2025, fueled by industrial growth, shifting office and housing demand, and a rapidly evolving retail landscape. “Changes in investment preferences in 2024, whether for development, leasing, or acquiring properties, reflect emerging trends and prospects for certain sub markets, segments, and real estate products in the near future.” – said David Jackson – Principal and CEO, Avison Young Vietnam.
Positive prospects for ready-built factories and warehouses
Strong performance is projected for Vietnam’s industrial real estate in 2025. Last year, this segment accounted for 78% of total real estate transactions in Vietnam, focusing on land acquisitions and asset trading.
E-commerce growth and increasing FDI inflows are expected to boost demand for ready-built factories and warehouses in Vietnam. To stay competitive regionally, developers and industrial real estate firms should enhance and diversify their offerings to better meet evolving tenant needs. Growing importance on ESG standards and green certifications will encourage the integration of sustainable practices into new projects.
Leasing transactions reflect shifts in the office market
In Q4/2024, most transactions in HCMC involved renewals, lease extensions and office relocations. This highlighted a growing diversification of office demand, which is expected to be clearer over time.
Prime office spaces in central districts, with stable or slightly rising rental rates, continue to attract large international clients in technology, finance, and professional services. Meanwhile, the on-going expansion into non-CBD areas with new projects offers variety to cater to diverse office needs.
Whether businesses choose to relocate or stay, there is a clear focus on modern, high-quality workspaces with reasonable rental costs to ensure effective financial management and an improved working environment.
Housing supply set to improve, but high prices and segment imbalances push growth to suburban developments
Housing supply in Hanoi and HCMC is expected to rise this year, with 30,000 and 12,000 new apartments set to be launched, respectively. The government continues to encourage investment in affordable housing and social housing projects to address housing needs.
The TOD model, boosted by the operation of HCMC’s Metro Line 1, is accelerating suburban real estate growth, such as in Củ Chi, Hóc Môn, Bình Chánh, Bình Dương, Đồng Nai, and Long An. However, challenges remain, including segment imbalances, rising development costs, and cautious buyer sentiment.
Retail space in shopping malls expands in terms of quantity and quality
Modern retail spaces in HCMC and Hanoi are undergoing rapid changes, driven by additional supply, e-commerce growth, and shifting consumer habits. In 2024, several new projects entered the market, including the most recent Central Mall Vo Van Kiet by Satra in HCMC and Aeon Mall Xuan Thuy in Hanoi.
As landlords and operators work to attract tenants and enhance project performance, competition in the retail real estate sector is set to intensify, reflecting on slower rental growth, more integrated amenities and better incentives offered. Despite economic fluctuations, Vietnam remains a promising market for both local and international retail brands in the long-term.
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