Vietnam: Southeast Asia’s rising star in real estate investment

In 2024, Vietnam’s GDP grew by 7.09%, with projections of 6.5–6.6% for 2025. This strong economic momentum has boosted consumer purchasing power and spurred demand for housing, office space, and industrial facilities. Foreign direct investment (FDI) reached USD 25.4 billion in 2024, a 9.4% increase year-over-year, with real estate among the top sectors attracting capital.

Residential real estate expected to surge

Major urban centres in Vietnam are driving this trend. Hanoi’s residential market is booming. Market reports indicate apartment prices in Q1 2025 rose 32% year-over-year and 5% from Q4 2024, averaging around USD 3,000 per square metre. Residential real estate supply is expected to rise as newly approved housing projects increase, thanks to state efforts to eliminate legal obstacles, and the restarting and acceleration of hundreds of projects, leading to market recovery.

Meanwhile, Ho Chi Minh City’s market is stabilising after recent corrections. Average apartment prices dipped slightly in 2024 but are expected to recover in 2025 following the introduction of a revised land price framework. This change aligns land valuations more closely with market conditions and supports investor confidence.

What this means for Vietnam real estate investors

Vietnam’s industrial and logistics sectors are also experiencing robust growth. Global supply chain shifts and the “China+1” strategy have made the country a preferred manufacturing hub. Demand for industrial parks and modern logistics centres continues to rise, supported by improved transport links, deep-sea ports, and smart industrial zones. Companies are increasingly investing in sustainable, high-tech logistics facilities to serve regional and global markets.

Legal reforms, including the revised Land Law and Housing Law, have enhanced market access for foreign investors, simplified real estate project approvals, and provide clearer guidelines on ownership rights. Foreign individuals and organisations can now own apartments and houses within regulated limits, though land ownership remains prohibited.

Despite these positive trends, some challenges persist. A high concentration of luxury developments has created a supply-demand imbalance, while affordable housing remains limited. Credit availability also varies across regions, although lower interest rates have helped ease financing constraints.

Still, Vietnam’s long-term outlook remains highly favourable. With a strategic location, sustained economic growth, and a legal environment more supportive of investment, the country’s real estate market is well-positioned for continued expansion in 2025 and beyond.

---

Sudhanshu Singh is a writer for Asia Briefing Ltd, published by Dezan Shira & Associates. He has a background in economics and international relations with a focus on public policy, physics, and technology.