Viet Nam’s real estate market is redefining for 2025, supported by infrastructure improvements, a strong domestic economy, and shifting market dynamics that continue to shape investment strategies. At Savills 2024 Review & 2025 Outlook: REDEFINE, we highlight how businesses can capitalise on economic momentum and new opportunities.

MACRO OVERVIEW

Foreign direct investment (FDI) totalled US$38 billion in 2024, slightly lower than the previous year, reflecting shifts in investor sentiment and global capital flows. At the same time, disbursed FDI reached a record high of US$25.4 billion, rising 9.4% YoY, highlighting investors’ continued confidence in Viet Nam.

While manufacturing continued to attract the largest share, real estate remained a key sector, supported by government initiatives and infrastructure upgrades. Investors are adjusting their strategies to align with shifting market conditions, focusing on long-term growth in semiconductors, energy, and high-tech industries.

Tourism also made a strong recovery, with 17.6 million international visitors in 2024, marking a 40% YoY increase. This resurgence has boosted hospitality, retail, and entertainment demand, reinforcing the sector’s role in economic expansion. Meanwhile, consumer spending remained strong, with retail sales of goods and services (RSGS) reaching US$256 billion, a 6% YoY increase, supporting business activity and signalling steady confidence in the domestic market.

Savills Market Brief Q4/2024 provides a detailed outlook on the residential, commercial, and hospitality sectors in Ho Chi Minh City (HCMC) and Ha Noi, helping investors and stakeholders make informed decisions.

Download Savills Market Brief Q4/2024 for insights into Viet Nam’s property sector.

RESIDENTIAL REAL ESTATE OVERVIEW

Apartment

HCMC apartment performance improved, but affordability remained a concern. Sales were driven by premium projects, pushing prices higher, while limited lower-priced options led more buyers to neighbouring provinces, where sales surged.

Ha Noi recorded its highest new supply in five years, with strong sales supported by large-scale developments from reputable developers. The secondary market remained active. Supply is expected to grow in 2025, with Grade B apartments making up most of the market.

Both supply and sentiment improved, however, at high prices. Demand has spilt to nearby provinces with affordable prices and improving infrastructure.

Troy Griffiths, Deputy Managing Director, Savills Viet Nam

COMMERCIAL REAL ESTATE OVERVIEW

Office

HCMC’s office market saw sustained growth, with decentralisation shaping supply and shifting demand away from the CBD. Occupancy increased to 89%, supported by major leases in the ICT and FIRE sectors, while rents maintained steady growth. Higher-quality buildings attracted tenants and relocations remained a key driver of leasing activity.

Ha Noi recorded a 10% year-on-year (YoY) increase in office supply, driven by several high-profile Grade A and B projects. Occupancy dropped to 82% as new supply entered the market, creating a more tenant-favourable environment with increased options and stronger negotiation leverage.

The office market is more in favour of tenants, with a variety of new Grade A supply in Midtown and the West. Tenants benefit from high-quality projects with more rent-free incentives.

Hoang Nguyet Minh, Senior Director, Commercial Leasing, Savills Ha Noi

Retail

HCMC’s retail market grew, with non-CBD areas attracting most new developments. Strong demand pushed rents higher, while luxury retail expanded as more global brands entered the market.

At the same time, Ha Noi’s retail sector continued to expand, with new supply coming from mixed-use developments. While rental prices increased, particularly in the CBD, occupancy dipped as more space became available. International retailers remained active, and major shopping centres introduced more flexible lease options.

A growing middle class that seeks convenience and flexibility is driving modern retail market share growth.

Cao Thi Thanh Huong, Senior Research Manager, Savills HCMC

HOSPITALITY REAL ESTATE OVERVIEW

Hotel

With tourism gaining momentum, HCMC’s hotel market continued to recover, supported by rising visitor numbers and stronger occupancy. Peak season occupancy reached 71%, and while international arrivals remained below pre-pandemic levels, demand from Asian showed signs of improvement. Limited future supply and upcoming airport expansions are expected to drive further growth.

Similarly, Ha Noi’s hotel sector experienced strong growth, with international arrivals increasing by over 30% YoY and total visitors surpassing pre-pandemic levels. Occupancy improved across all hotel grades, while upcoming developments will introduce thousands of new rooms, with international operators expanding their presence. Growing airline connections and major events are expected to further boost demand.

HCMC is expected to achieve full recovery by 2025, driven by the strong return of international visitors, especially from its key source markets.

Neil MacGregor, Managing Director, Savills Viet Nam