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Vietnam’s real estate landscape in Q4/2024

Published

5 months ago

February 10, 2025

Avison Young Vietnam analysts offer an insight into the developments in Vietnam’s key real estate segments in Q4/2024 and forecast for 2025.

An undeveloped project site in Ho Chi Minh City. Photo courtesy of Thanh Nien (Young People) newspaper.

Easing global interest rates have encouraged investors in the quest for real estate investment opportunities, leveraging the robust economic foundation in the Asia-Pacific region.

In Vietnam, the year of 2024 witnessed an influx of FDI into strategic assets such as development sites, industrial and logistics properties, residential real estate, and office spaces.

“The surge in foreign capital inflows into Vietnam’s real estate market highlights its resilience and considerable growth potential. Changes in investment preferences which were observed in the final quarter of 2024, whether for development, leasing, or acquiring properties, reflect emerging trends and prospects for certain sub markets, segments, and real estate products in the near future,” said David Jackson, principal and CEO, Avison Young Vietnam.

Purpose of leasing transactions reflects office segment shifts

In Q4/2024, the office markets in Ho Chi Minh City and Hanoi remained stable, with rental rates and occupancy levels sustaining positive trends. While the new supply in 2024 did not reach the level of the previous year, market activities demonstrated a tendency toward optimizing workspaces and rental costs.

In HCMC, most transactions involved renewals, lease extensions, office relocations within the same district or from District 1 to the new Thu Thiem urban area. Grade A and Grade B rental rates stood at $54/sqm/month and $31/sqm/month on average, respectively, with an overall market occupancy rate of 88%.

Over the next two years, new supply will primarily concentrate in fringe areas such as District 3, District 7, Tan Binh district, Binh Thanh district, and Thu Duc city, with notable projects including The Beacon, Yteco Tower, and Daikin Tower.

In Q4/2024, Hanoi welcomed the Grade B Gems Empire Tower in Thanh Xuan district. The EDGE-certified project achieved a 90% occupancy rate at launch. Market-wide, rental rates and occupancy levels remained unchanged, with leasing activity concentrated in areas with robust transportation infrastructure such as Cau Giay, Thanh Xuan, and Nam Tu Liem. Between 2025 and 2027, new supply is projected to reach 300,000 sqm, with prominent projects including Tien Bo Plaza and B3CC1.

Reflecting on leasing activity throughout 2024, a growing diversification of office demand is anticipated in the time to come. Central office spaces with stable or slightly rising rental rates continue to attract large international clients in the technology, finance industries, and professional services providers.

Meanwhile, new projects in non-CBD areas are enhancing supply to cater to diverse office needs. Whether businesses choose to relocate or stay, there is a clear focus on modern, high-quality workspaces with reasonable rental costs to ensure effective financial management and an improved working environment.

Retail space in shopping malls expands in terms of quantity and quality

In 2024, HCMC witnessed a surge in modern retail space supply, with three new projects: Vincom Mega Mall Grand Park, Parc Mall, and Central Premium Mall. Additional supply, coupled with competitive rental rates, large-scale projects which meet international standards and with integrated amenities, provided retailers with strong incentives to enter and expand in the market.

For instance, Parc Mall and Central Premium Mall achieved occupancy rates of 100% and 60%, respectively, shortly after opening, boosting the non-central occupancy rate by 7% to 82% in Q4/2024. On January 10, 2025, the city will welcome Central Mall Vo Van Kiet by Satra, further enriching the shopping and entertainment options for residents in the southwestern area.

In Hanoi, Aeon Mall Xuan Thuy is set to open on January 10, 2025. New supply of shopping centers in Hanoi in 2024 accounts for only 20% of the previous year’s volume. Across the market, rental rates and occupancy levels rose in Q4, reaching $37-140/sqm/month in central areas (up 3%) and $20-88/sqm/month in non-central areas (up 5% compared to Q4/2023).

Over the next two years, Hanoi expects to welcome two new projects – Hanoi Centre within the Tien Bo Plaza complex, operated by Keppel, and Tonshin-Starlake under Takashimaya. As a result, the retail real estate segment is expected to remain vibrant and competitive, attracting more retailers in the coming years.

Mid-range and high-end apartments continue to grow in major cities, infrastructure accelerates suburban development

Several new condominium projects were launched in Q4/2024, including The Opus One, Kiều by Kita, and King Crown Infinity in Ho Chi Minh City, and Imperia Co Loa, The Senique Hanoi, and Luminere Springbay in Hanoi.

In HCMC, the high-end segment experienced the strongest growth in price in 2024, with primary price at Lancaster Legacy, The Metropole, and The River Thu Thiem exceeding $8,000/sqm.

Although supply has improved, high prices have driven demand toward Binh Duong, Dong Nai, and Long An, where infrastructure is being developed, and prices are more affordable ($1,100-1,500/sqm in areas like Thuan An and Di An, Binh Duong).

In 2025, Ho Chi Minh city plans to launch 50,000 units from 17 projects, including The Global City, Diamond Valley Van Phuc, and Eco Smart City, with 11 out of 17 projects are in Thu Duc city.

In Hanoi, primary prices increased by 5% quarter-on-quarter, averaging $2,600-3,600/sqm. After a heated first half of 2024, price growth is expected to stabilize moving forward. The overall market absorption rate reached 80-85%, higher than HCMC’s 70-75%. In 2025, 10 new projects with over 13,500 units, including Central Residence, Vinhomes Co Loa, and Bac Hanoi Smart City, will be launched.

Rising input costs (land taxes, construction, and design expenses) and product positioning will push the average apartment prices higher in major cities. Suburban development is expected to continue, driven by investments in urban railways, forming satellite urban hubs with extensive condominium projects. Recently, HCMC proposed a four-lane elevated road on National Highway 13 through Thu Duc city, accelerating development towards Binh Duong.

Rising demand for ready-built factories and ready-built warehouses driven by e-commerce growth and FDI

In Q4/2024, industrial land rental rates and occupancy levels in Hanoi and HCMC remained unchanged from the previous quarter and showed little variation from the same period last year. These key markets continue to play a central role in promoting industrial development in the surrounding areas.

In the south, Binh Duong and Long An led industrial real estate transactions in 2024, accounting for nearly 40% of active industrial parks in the southern economic zone. In the north, Bac Ninh and Quang Ninh stood out with notable transactions, including Weifang Goer Group’s acquisition of Goertek’s project in Bac Ninh and Coremax’s purchase of a plot in DeepC Industrial Park, Quang Ninh.

Industrial real estate M&A activities remained positive in 2024, driven largely by foreign investors. This segment represented 78% of total real estate transactions in Vietnam in 2024, focusing on land acquisitions for industrial development and asset trading.

The growth of e-commerce and FDI in manufacturing continues to fuel demand for ready-built factories and warehouses.

Chi Vu, senior manager, industrial services of Avison Young Vietnam commented: “Donald Trump’s re-election as U.S. President is expected to accelerate the shift of production to other countries, with Vietnam positioned as a strategic destination due to its advantages. This creates significant opportunities for developers and industrial real estate firms. Ready-built warehouses and factories are expected to grow in both supply and variety as market demand rises.”

Related Topics:Q4/2024 real estate market Vietnam

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Vietnam’s Exclusive Economic Zone boasts over 1,000 GW of wind power potential: report

Published

2 months ago

April 27, 2025

Industrialzone.net

Vietnam’s Exclusive Economic Zone (EEZ) has a wind power potential of 1,068 GW, nearly 470 GW more than previously estimated, according to a report released Friday by the National Center for Hydro-Meteorological Forecasting (NCHMF).

An offshore wind power project in Vietnam. Photo courtesy of VnEconomy.

The report, titled “Detailed Assessment of Wind Resource Potential in Coastal (up to 6 Nautical Miles) and Offshore Areas in Vietnam,” was conducted by the NCHMF with support from the United Nations Development Program (UNDP) and the Norwegian Embassy.

This wind potential was measured at a height of 100 meters above sea level, said Mai Van Khiem, director of the NCHMF. He noted that from November to February each year, wind capacity accounts for half of the annual total – peaking in December and gradually decreasing, with the lowest levels recorded in May.

The southern offshore areas account for 894 GW of this potential, while the northern areas contribute 174 GW.

In nearshore zones (up to 6 nautical miles), the total technical wind power potential is 57.8 GW. The Bac Lieu-Ca Mau region alone contributes nearly 30% of this, while the Ninh Thuan-Binh Thuan area accounts for 24 GW. Although the Quang Tri-Hue region has lower potential, it offers stable wind speeds during the winter months. The Red River Delta has a modest potential of 0.17 GW.

Compared to previous assessments, such as the World Bank’s 2021 study and data from the Global Wind Atlas (GWA), this report provides more detailed and higher-resolution information, both spatially and temporally.

“Notably, the EEZ potential outlined in this report exceeds the World Bank’s estimate by 469 GW, primarily due to the broader scope of the survey and more refined climate modeling using domestic observational data,” the research team explained.

They also emphasized the use of the Weather Research and Forecasting (WRF) model customized specifically for Vietnam, which enhanced the accuracy of the results.

The findings are based on wind data collected from 26 coastal and island meteorological stations, satellite sources from CCMP, ASCAT, and SCATSAT-1 (covering 30 years of ocean surface wind data), as well as buoy data from Nghe An province and seabed depth measurements.

A key innovation in this report is the integration of potential impacts from extreme weather events. Typhoons and tropical depressions occurring between August and October pose structural and safety risks to wind turbines. Meanwhile, strong winds and high waves during the northeast monsoon season can hinder access to and maintenance of offshore wind systems.

To support model calibration and long-term observation, the research team recommends increased investment in offshore wind monitoring stations at heights exceeding 100 meters. They also suggest incorporating these findings into offshore wind development strategies and national marine spatial planning.

Additionally, the team advocates for expanding research into other forms of marine renewable energy, such as wave, tidal, and ocean thermal energy.

“Vietnam has some of the most promising offshore wind resources in the region, creating a strong foundation for the development of a large-scale offshore wind industry. This will contribute to energy security, green economic growth, and the achievement of net zero commitments,” they said.

The study provides a vital scientific basis for policy planning, identifying priority development zones, attracting investment, building infrastructure, and training the future offshore wind workforce, the team added.

Hoang Duc Cuong, deputy director of the Department of Meteorology and Hydrology, emphasized that Vietnam lies within a strong and stable Asian monsoon belt, giving it abundant wind energy potential. He noted that this renewable source will play a key role in meeting the country’s climate change goals and advancing a low-carbon economy.

However, he also warned that marine-based natural disasters are highly complex and could significantly impact the stability of offshore wind operations and energy generation.

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Uncertainty weighing on real estate

Published

2 months ago

April 26, 2025

Industrialzone.net

The ever-changing status of the global economy following last week’s tariff shocks continue to loom large among investors in Vietnam’s real estate market.

All real estate segments are at risk of losing appeal if high global tariffs are eventually put in place, photo Le Toan

Pham Lam, vice chairman of the Vietnam Real Estate Association, said that while it is premature to determine the full impact of new US import tariffs on Vietnam’s property market, early signs point to shaken investor sentiment and potential disruptions to foreign investment.

“If multinational corporations scale back or delay their factory expansion plans, the demand for land and factory leasing could decline, which may place downward pressure on industrial rents, lead to increased vacancy, and postpone new industrial zone developments,” he said. “This would affect key industrial property markets such as Bac Ninh, Bac Giang, Haiphong, Long An, and Binh Duong.”

Meanwhile, real estate expert Nguyen Hoang said that the United States remains one of the most critical export destinations for Vietnam’s foreign-invested enterprises.

“Any change in tariffs will significantly influence capital flows, investor confidence, and manufacturing strategies of companies operating in Vietnam. If a high tariff is fully implemented in 90 days, it could seriously diminish Vietnam’s investment appeal – affecting all real estate segments as a result,” Hoang said.

Vietnam’s property market has only recently emerged from a prolonged two-year downturn.

“It remains highly sensitive to economic and policy shocks. Investors have remained cautious, and any further external pressure could threaten to break the fragile liquidity recovery, potentially sending the market back into a period of short-term stagnation,” Hoang added.

Alex Crane, managing director of Knight Frank Vietnam, said that the recent tariff twists by the US casts a shadow of uncertainty, with potential implications for various segments of the market.

While manufacturing has shown resilience, it is still on the path to full recovery from the pandemic, particularly in labour-intensive sectors like garments and furniture. Tariffs imposed now would not have as severe an impact as they might have during Vietnam’s 2019 peak, but consequences are still expected, Crane said.

“I may expect that major transactions, especially those involving large capital outlays, are being paused or undergoing extended due diligence as investors and developers reassess assumptions and underwriting models and commercial occupiers are expected to defer large capital expenditures in the short term,” Crane said.

In addition, the response from the State Bank of Vietnam, particularly regarding monetary policy, will be crucial. While a rate cut may not effectively stimulate residential demand (as demonstrated in 2024), targeted lending for key industries and easing of loan-to-value ratios or debt-to-income limits for developers could provide relief.

“At present, most segments of the real estate market are in a holding pattern, awaiting clarity from the evolving negotiations between the Vietnamese and US governments. While uncertainty is unsettling, Vietnam’s underlying fundamentals remain sound, and the market’s long-term outlook is still viewed positively,” he added.

Nguyen Dung Minh, deputy CEO of MIK Group, has warned that under the new US tariff regime, many investors will be forced to reassess their strategies, likely leading to a decline in the demand for industrial land.

“Investors will need time to re-evaluate their actual demand and incoming orders and make necessary adjustments before they can fully gauge the extent of the impact,” Minh said.

He added that the implications go beyond just industrial land. “The new US tariffs are also expected to disrupt supply chains and negatively affect supporting sectors such as logistics, warehousing, and raw materials manufacturing. As production slows, so too will the demand for land associated with these services,” Minh said.

Trang Bui, country head Cushman & Wakefield Vietnam While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries. This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements. Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely. Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution. Nguyen Thi Bich Ngoc, CEO, Sen Vang Group When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations. In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors. Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart. Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally. Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development. Vo Hong Thang, Investment director DKRA Group The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented. In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle. In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users. Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

Trang Bui, country head Cushman & Wakefield Vietnam

While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries.

This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements.

Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely.

Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution.

Nguyen Thi Bich Ngoc, CEO, Sen Vang Group

When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations.

In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors.

Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart.

Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally.

Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development.

Vo Hong Thang, Investment director DKRA Group

The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented.

In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle.

In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users.

Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

Project

Central Vietnam city seeks $1.84 bln for 15 projects in economic zone

Published

2 months ago

April 26, 2025

Industrialzone.net

Authorities of Hue city in central Vietnam have released a list of 15 projects in Chan May-Lang Co Economic Zone which will need VND47.5 trillion ($1.84 billion) in investment capital between 2025 and 2026.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Notable projects include the Chan May non-tariff zones No. 1 and 2 infrastructure development project, with a total area of over 503 hectares and combined investment capital of VND2.8 trillion ($108.23 million).

Another is the VND20 trillion ($773 million) Chan May Urban Area project (locations 1 and 2), which will cover 225 hectares and be implemented over five years.

The LNG terminal project at Chan May Port, 27 hectares with an investment of VND8.6 trillion ($332.43 million), is set for five-year implementation.

The 120-hectare Bai Ca eco-tourism project in Lang Co township will have investment capital of VND2.5 trillion.

The Lang Co beach resort, with an area of 45 hectares and total investment of VND4 trillion ($154.62 million), will be carried out over five years; while the 75-hectare Lap An lagoon tourism, urban development and resort complex in Lang Co township will cost VND6 trillion.

According to the management board of Hue Economic and Industrial Zones, since its establishment, Chan May-Lang Co Economic Zone has attracted 55 investment projects which remain valid, with total registered capital of VND97.32 trillion ($3.76 billion).

Among these, 15 are foreign-invested projects with combined capital of VND56.02 trillion ($2.17 billion), accounting for 57.56% of the total.

Several prominent foreign investors have established a presence in the zone, such as Banyan Tree Group (Singapore) with the Laguna Lang Co Resort and Winson Group (Taiwan) with the Billion Max Vietnam Export Processing Factory.

Chan May-Lang Co has become a destination for investments in sectors like tourism and resort development; seaport infrastructure; logistics; clean industry; and high-tech, environmentally friendly industries, with annual revenue reaching nearly VND4 trillion ($154.62 million) and tax contributions of around VND300 billion.

The management board said Hue city has proposed the Ministry of Construction review the adjustment of the EZ master plan through 2045, for submission to the Prime Minister.

The strategic goal is to develop Chan May-Lang Co into a key economic zone of central Vietnam – a coastal gateway offering logistics services for the central region and the East-West Economic Corridor, as well as a hub for high-end tourism services.

To attract investors, the local government will offer a range of incentives such as a 10% corporate income tax rate for 15 years from the first year the project generates revenue; import tax exemption for goods to create fixed assets for investment projects, and land and water surface rental exemptions, the board said.