RESIDENTIAL MARKET OVERVIEW

In HCMC, slowing population growth and high housing costs are impacting the labour force, leading to growing demand in more affordable suburban areas. In response, the government is investing in infrastructure such as metro lines, ring roads, and expressways to improve connectivity with satellite provinces. Over the next three years, nearly 5,000 units are expected to be launched along metro lines and over 14,000 along Ring Roads 2 and 3.

In Ha Noi, the aim is to raise infrastructure spending to 7% of GDP by 2025, allocating VND 87 trillion (US$3.4 billion) to 12 key transport projects, including major bridges and Ring Road 4. Integrating housing into the overall infrastructure strategy is expected to unlock new capital and policy tools, supporting real estate development.

RETAIL MARKET OVERVIEW

This report highlights a gradual return of global investors to retail after a period of retreat. Although global retail investment is forecast to account for only 12.4% in 2025 (down from 27.7% in 2018), activity has shown signs of recovery since late 2024.

In Ha Noi, the retail market remained stable in H1/2025, with an occupancy rate of 86% and average ground floor rent of VND 1.3 million/m²/month. F&B and convenience store sectors led demand, supported by new international and domestic brands. With limited future supply and resilient consumer demand, the retail sector is expected to maintain steady momentum.

OFFICE MARKET OVERVIEW

HCMC’s office market continues to grow steadily thanks to solid demand and a gradual expansion in supply. As of Q2/2025, total stock reached 2.9 million m² NLA, slightly up from the previous quarter due to new Grade C projects. The average rent was VND 844,000/m²/month, with an occupancy rate of 88%.

In Ha Noi, the total office stock reached 2.28 million m² NLA across 193 projects, mainly concentrated in the West and non-CBD areas. Grade A supply in the CBD remains limited. The average rent was VND 564,000/m²/month, with an occupancy rate of 83%.

HOSPITALITY MARKET OVERVIEW

Viet Nam welcomed nearly 10.6 million international visitors in the first half of 2025, a 24% increase compared to the same period in 2019, supported by improved air connectivity and recovering source markets.

In HCMC, hotel supply remained stable at 16,622 rooms in Q2/2025 with no new projects. The trend of upgrading and repositioning existing hotels is gaining traction. In Ha Noi, hotel supply stood at 10,986 rooms, down slightly by 1% QoQ and YoY. Four new hotels, including three 5-star and one 4-star property, are expected to add 1,138 rooms in the second half of 2025. The outlook for the hospitality sector remains positive as international demand continues to grow. In Ha Noi, hotel supply stood at 10,986 rooms, down slightly by 1% QoQ and YoY. Four new hotels, including three 5-star and one 4-star property, are expected to add 1,138 rooms in the second half of 2025. The outlook for the hospitality sector remains positive as international demand continues to grow.