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| Vietnam’s property market is poised for a robust comeback in 2025, with positive indicators across the board. (Photo: VNA) |
Vietnam’s property market is set for a significant rebound in 2025, fueled by a combination of factors that include improved investor confidence, more accessible borrowing costs, and increased transaction activity in key segments. Industry experts attribute this positive outlook to the country’s strong economic recovery, the thriving office and residential markets, and the surging demand for industrial real estate.
According to JLL’s Vietnam Real Estate Market Outlook 2025 report, Vietnam’s economy remains one of the fastest-growing in Asia, despite global uncertainties. In 2024, the country attracted a record-high $25.4 billion in foreign direct investment (FDI) disbursements, representing a 9.4% increase compared to the previous year. This growth has been bolstered by key infrastructure projects that have transformed emerging property hotspots nationwide.
Trang Le, Head of Consulting and Research at JLL Vietnam, emphasizes that Vietnam’s sustained economic growth, coupled with an improved investment climate and a rising middle class, is enhancing the country’s appeal as a standout real estate market in the region. The increasing sophistication of investors also contributes to the market’s attractiveness.
Will Tran, Head of Office Leasing Advisory at JLL Vietnam, notes a growing trend among businesses seeking premium and modern workspaces that enhance productivity and meet sustainability criteria. This shift in preferences has driven up demand for high-end office spaces, particularly in Ho Chi Minh City’s central business district, where rental prices for Grade A and A+ offices have risen 1.3% year-on-year despite a significant increase in supply.
The Vietnamese housing market, which experienced a low point in 2024, is expected to witness a strong recovery. This turnaround is attributed to policy reforms that aim to improve transparency and expedite project approvals, resulting in an anticipated boost in new housing supply. Developers and investors remain focused on Hanoi and Ho Chi Minh City while also exploring surrounding satellite areas that show promising growth in housing demand.
Bach Ta, Director of Capital Markets Transactions at JLL Vietnam, foresees a more sustainable growth phase for the housing market. He attributes this to urbanization, a growing middle class, and regulatory reforms. Ta anticipates increased transaction activity in well-planned residential projects, particularly in the mid- to high-end segments of the market.
Vietnam has also solidified its position as a manufacturing powerhouse in Southeast Asia. Proactive local policy adjustments, global supply chain shifts, and ambitious infrastructure development plans have further enhanced the country’s attractiveness in the industrial and logistics sectors.
Van Nguyen, Head of Transactions for Northern Vietnam at JLL, highlights the flourishing state of Vietnam’s industrial market and supply chain. The manufacturing and real estate sectors have been the primary recipients of the record-high $25.4 billion in FDI received in 2024. As infrastructure continues to improve, encouraging expansion beyond traditional hubs, Vietnam is witnessing the development of high-tech, eco-friendly industrial parks, further cementing its role in the global supply chain.
Looking ahead, experts remain optimistic about investment opportunities in 2025. Vietnam’s real estate market is entering a new phase of economic growth, characterized by increased transaction volumes, a solid economic foundation, and ongoing legal reforms. Michael Glancy, Managing Director for Thailand, Indonesia, the Philippines, and Vietnam at JLL, expresses confidence in the market’s recovery and predicts a surge in investment activity throughout 2025. He attributes this positive trend to lower borrowing costs and improved sentiment among investors.
Vietnam’s core strengths, including its dynamic and youthful workforce, advancing infrastructure, and investor-friendly policies, continue to make it a top-tier destination for property investment across multiple sectors. As conditions improve, industry leaders anticipate a rise in transactions and fresh development projects, further reinforcing Vietnam’s status as a standout real estate market in Southeast Asia.
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