Vietnam's real estate: Rising star in Southeast Asia

Vietnam's property market is set to rebound strongly in 2025. (Photo: VNA)

Industry experts have pointed to Vietnam's economic recovery, a thriving office and residential market, and surging demand for industrial real estate as significant factors solidifying the country’s status as a prime investment destination in Southeast Asia.

According to JLL's Vietnam Real Estate Market Outlook 2025 report, Vietnam remains one of Asia's fastest-expanding economies despite global uncertainties. In 2024, the country achieved a record 25.4 billion USD in disbursed foreign direct investment (FDI), marking a 9.4% increase year-on-year. Key infrastructure projects have played a crucial role in boosting growth across emerging property hotspots nationwide.

Trang Le, Head of Consulting and Research at JLL Vietnam, highlighted that Vietnam’s sustained economic growth, coupled with an improved investment climate, a rising middle class, and increasingly experienced investors, is enhancing the country's appeal as a standout real estate market in the region.

Will Tran, Head of Office Leasing Advisory at JLL Vietnam, noted that businesses are increasingly seeking premium and modern workspaces that enhance productivity while meeting sustainability criteria, a trend driving demand for high-end office spaces.

Ho Chi Minh City's central business district has seen a notable shift, with Grade A and A+ office rental prices rising 1.3% year-on-year despite a record influx of new supply over a six-month period. This increase reflects the growing preference for high-quality, eco-conscious workspaces.

Vietnam's housing market, which hit a low point in 2024, is forecasted to recover robustly. Experts attribute this to policy reforms aimed at improving transparency and expediting project approvals, which are expected to boost new housing supply.

Developers and investors continue to focus heavily on Hanoi and Ho Chi Minh City, while also exploring surrounding satellite areas where housing demand is rising steadily.

According to Bach Ta, Director of Capital Markets Transactions at JLL Vietnam, the housing market is entering a more sustainable growth phase, supported by urbanisation, a rising middle class, and regulatory reforms. He anticipates heightened transaction activity in well-planned residential projects, particularly in the mid- to high-end segments.

Vietnam has also strengthened its position as a manufacturing powerhouse in Southeast Asia. The country is benefiting from proactive local policy adjustments, global supply chain shifts, and ambitious infrastructure development plans, further elevating its attractiveness in the industrial and logistics sectors.

Van Nguyen, Head of Transactions for Northern Vietnam at JLL, noted that Vietnam's industrial market and supply chain are flourishing, with FDI reaching a record 25.4 billion USD in 2024. The manufacturing and real estate sectors remain the top recipients of these investments. As improved infrastructure encourages expansion beyond traditional hubs, Vietnam is seeing a rise in high-tech, eco-friendly industrial parks, enhancing its role in the global supply chain.

Experts remain optimistic about investment opportunities in 2025 as Vietnam’s real estate market enters a new phase of economic growth. Key factors driving this outlook include increased transaction volumes, a solid economic foundation, and continued legal reforms.

Michael Glancy, Managing Director for Thailand, Indonesia, Philippines and Vietnam at JLL, expressed confidence in the market’s recovery, predicting a surge in investment activity throughout 2025. He emphasised that lower borrowing costs and improved investor sentiment are fostering this positive trend.

Vietnam's core strengths, such as a youthful, dynamic workforce, advancing infrastructure, and investor-friendly policies, continue to position the nation as a top-tier destination for property investment across multiple sectors. As conditions improve, industry leaders expect a rise in transactions and fresh development projects, further reinforcing Vietnam’s status as a standout real estate market in Southeast Asia, he noted./.