Strong economic fundamentals bolster market confidence

Vietnam recorded solid economic indicators in 2025, with GDP growth of 8% and foreign direct investment (FDI) reaching US$38.4 billion, thus  strengthening confidence among both buyers and developers. Growth has been driven by exports, alongside a recovery in manufacturing and services, showing  stable global demand and Vietnam’s growing role in regional production and trade networks.

Domestic consumption remains stable, indicating long-term demand potential. Manufacturing and trade continue to benefit from supply chain diversification and foreign investment flows into export-oriented sectors. The recovery is driven by stable export turnover and a rebound in manufacturing and services.

FDI inflows of US$38.4 billion in 2025 have become an important support, reinforcing confidence among buyers and developers.

Although growth is expected to edge down to 6.3% in 2026 due to slower population growth and rising lending rates, Vietnam remains one of the fastest-growing economies in the region.

Anshul Jain, Head of India and Southeast Asia and Head of Office and Retail for Asia Pacific at Cushman & Wakefield, said Southeast Asia’s growth comes from investment demand, an expanding consumer base, a young workforce and ambitious infrastructure programmes, adding that cross-border capital flows are strengthening with greater participation from global corporations.

Industrial property and digital infrastructure lead new investment wave

Industrial real estate continues as the main driver, supported by a favourable geographic location and improving infrastructure. Capital is shifting into industrial assets and digital infrastructure, particularly data centres, the largest investment segment in Southeast Asia in 2025. Vietnam has strong growth potential due to limited supply and high demand from global corporations.

Wong Xian Yang, Head of Research for Singapore and Southeast Asia, said the rebound in 2025 reflects market cycles and structural shifts in capital allocation. Investors are focusing more on sectors linked to manufacturing expansion and digitalisation, particularly logistics and data centres.

In Vietnam, industrial real estate continues to lead the market, while the retail segment is expected to see improvement. Retail sales are forecast to rise by more than 15% in 2026, which supports demand for modern retail space in major cities.

On Ho Chi Minh City’s apartment market, Troy Griffiths, Deputy Managing Director of Savills Vietnam, said the market is showing a clear recovery in liquidity, but supply remains limited and concentrated in higher-priced segments, creating divergence among buyer groups.

Matthew Powell, Director of Savills Hanoi, said the capital’s retail market continues to face limited supply. Shopping centres remain the dominant format, while the central area is constrained in space and contributes only a small share of total supply. Luxury brands continue to prioritise street-front locations to maximise brand visibility, while expanding into professionally managed high-end malls.

According to experts,  real estate markets in both Hanoi and Ho Chi Minh City are moving towards higher product standards and multi-centre development linked to infrastructure.

Large urban developments and inter-regional infrastructure, meeting demand for living, working and consumption, continue to lead the real estate market in 2026.

Vietnam's property market draws Korean investors

Vietnam’s increasingly attractive property market was a key topic at a seminar held in Seoul, the Republic of Korea (RoK) on December 6 by Cloud, a Korean consultancy specialising in overseas property investment, amid tighter real estate regulations at home that continue to push Korean capital abroad.

Legal reforms improve property market accessibility for overseas Vietnamese

Sustained remittance inflows, coupled with breakthrough changes in the legal framework governing land, housing and real estate business activities, are opening up significant opportunities for overseas Vietnamese to invest more in the domestic property market.