Over the last three decades, Viet Nam’s real estate market has experienced a transformative journey. From its early beginnings as the first international real estate services agent, Savills Viet Nam grown alongside the market, becoming a nationwide leading real estate consultancy, and offering full-service solutions that support development, investment, and innovation across all property segments.

1995 – 2005: The emergence of real estate

Savills Viet Nam began in the mid-1990s, during the country's preliminary shift from a centrally planned economy to one guided by market mechanisms. 1995 restored diplomatic ties with the United States, and Viet Nam entered ASEAN, prompting the country to embrace international trade, capital, and expertise.

This openness overlapped with key legal reforms, including the Land Law of 1993, which allowed individuals and businesses to transfer land-use rights for the first time, providing a legal foundation for a functioning property market and ushering in a new era of urban development. During this period, positive economic and legal reforms reinforced the demand for land, significantly increasing real estate prices.

Savills Viet Nam, originally operating as Chesterton Petty, was established in 1995 with a small team based in Ha Noi. Recognising the momentum behind landmark developments such as Diamond Plaza, Sun Wah Tower, and Indochine Park Tower, the firm expanded into Ho Chi Minh City in 1999. Savills had become the exclusive commercial representative for Diamond Plaza and Indochine Park Tower - an achievement that cemented its role in shaping the high-end real estate landscape of Viet Nam’s most dynamic urban centre.

2006 - 2015: Rapid growth and market volatility

From 2006 to 2008, Viet Nam experienced opportunities witnessing a surge in economic activity driven by the country’s accession to the World Trade Organization (WTO). With increased capital inflows and rapid industrialisation, demand for real estate skyrocketed. Foreign direct investment in the sector peaked at an impressive US$23.6 billion in 2008, with developers racing to meet demand for office space, residential units, and hospitality projects.

However, turbulence arrived with the global 2008 financial crisis, felt through liquidity evaporating, credit conditions tightening, and many projects stalled or abandoned. Until 2013, the market experienced a significant downturn, prompting public and private stakeholders to re-evaluate strategies and priorities.

In response, the Vietnamese government introduced several pivotal legal reforms, including updates to the Land Law, Housing Law, and the Law on Real Estate Business. These laws enhanced buyer protections, clarified land-use rights, enforced stricter developer regulations, and allowed foreign individuals to purchase homes. By improving transparency and professionalism, the government helped restore market confidence. These reforms remain pivotal as they reduced speculation, attracted foreign capital, and encouraged long-term investment, enabling the real estate sector to recover, regulate and mature.

For Savills, this was a period of consolidation and expansion. In late 2007, Savills Group officially acquired Chesterton Petty Viet Nam, bringing global resources, technology, and institutional knowledge to the domestic market. The acquisition allowed the firm to diversify its service lines - expanding into property management, investment brokerage, valuations, and professional research. By 2015, Savills Viet Nam had grown to more than 1,000 employees and played a pivotal role in the rise of the country’s second home and resort property markets, supporting developers by launching branded residences and integrated coastal resorts across the Central region.

2016 - 2025: Market maturity, with unprecedented challenges

From 2016 to 2025, the macroeconomic environment remained stable, with GDP growth averaging 6-7% annually. A young population with rising incomes, and continued urbanisation drove demand across all property segments, from affordable housing and co-working spaces to luxury condominiums and logistics hubs.

In this period, the residential market in both Ha Noi and Ho Chi Minh City reached new heights. Savills 2018 data records Ho Chi Minh City launching nearly 39,000 new apartments, a 33% increase year-on-year. The total transaction volume of Ha Noi's residential segment peaked in 2019, with 44,000 sales. Between 2016 and 2024, 230,000 residential units were introduced in Ha Noi, with apartments dominating the supply, accounting for approximately 90% of new launches.

Simultaneously, the commercial real estate sector was expanding rapidly. During this period, Ha Noi’s total office stock grew from around 1 million square metres to over 2.33 million square metres assisted by key developments such as Lotte Center Ha Noi, Keangnam Landmark Tower, Capital Place, and Lotte Mall West Lake.

In Ho Chi Minh City, office stock rose from 1.8 million to 2.8 million square metres, showcased by landmark projects including The Nexus, Riverfront Financial Centre, The Hallmark, The Mett, Phu My Hung Tower and Friendship Tower. These buildings reflected the increasing demand from domestic and multinational companies seeking modern, high-specification office space in strategic urban locations.

The retail landscape also evolved, with modern shopping plazas and mixed-use developments reshaping consumer behaviour. Retail space in Ha Noi grew from 1.1 million to 1.8 million square metres, and Ho Chi Minh City expanded from 1 million to 1.6 million square metres. Notable additions to the retail scene included Vincom Center Tran Duy Hung and Lotte Mall West Lake in Ha Noi, Crescent Mall Phase 2, Vinhomes Central Park Landmark 81 Retail Podium, and Estella Place in Ho Chi Minh City.

This period, however, was disrupted by the COVID-19 pandemic in 2020, resulting in project delays, a disrupted supply chain, and a shift in consumer preferences. Developers felt additional pressure from stricter credit controls and regulatory reviews, which led to increased scrutiny and delays in project approvals. Post-pandemic, the market faced significant challenges, including an imbalance between supply and demand, limited affordable housing, tightened credit policies, and prolonged project approval processes. High property prices and legal uncertainties dampened buyer sentiment.

Despite these headwinds, Savills Viet Nam continued to provide steady guidance to investors, developers, and occupiers. The firm’s research, data analytics, and ESG advisory strength proved valuable as clients sought to adapt to changing regulations and evolving market expectations. Savills also played a key role in supporting green and sustainable development initiatives, assisting clients with international certification standards and responsible planning strategies.

The future is bright: Guidance with a fresh perspective

Savills Research has launched the Q1 Market Report of 2025, detailing the steady progress across Ha Noi and Ho Chi Minh City segments.

Ha Noi recorded 7,914 apartment sales, an increase of 49% YoY with mega projects like Vinhomes Ocean Park, Smart City and Global Gate, and office occupancy reached 82%, equalling a positive quarterly take-up. Retail occupancy was high at 86% due to the expansion of convenience stores and fashion and cosmetics brands such as GS25, Adidas, and Pedro.

In Ho Chi Minh City, Grade A office rents increased to VND 833,000/m²/month with 88% occupancy, and retail remained strong at 94% occupancy. New apartment supply is limited but is expected to improve with support from revised planning and legal frameworks focused on boosting development.

Viet Nam’s real estate market is poised for a new growth cycle, supported by continued government reform and strategic infrastructure investment. Implementing the updated Land Law, Housing Law and Real Estate Business Law from August 2024 promises to streamline approval processes and reinforce investor protections.

Major infrastructure projects, such as the Long Thanh International Airport, expressway network, high-speed rail links, will transform regional connectivity and unlock new corridors for development.

Recent provincial merges (63 localities into 6 cities and 28 provinces) are predicted to drive economic efficiency, reduce administrative costs, and streamline investments. For the real estate sector, larger unified regions allow for cohesive planning, improved infrastructure, and more attractive investment environments, encouraging large-scale developments, enhancing land value, and supporting balanced growth across urban and rural areas.

Meanwhile, trends such as the rise of smart cities, AI-driven property platforms, and sustainability-focused urban planning will reshape how real estate is conceptualised, developed, and managed. Affordable housing is also returning to the policy spotlight, assisted by new frameworks that support public-private partnerships and inclusive growth. 

Savills Viet Nam is well-positioned to guide stakeholders through future transformations in this evolving landscape. With 30 years of in-country insight and an unrivalled global network, the firm offers an integrated platform with expertise across the whole real estate lifecycle—from strategy and planning to delivery and operation. This comprehensive approach enables clients to capitalise on opportunities and navigate risks in a fast-changing environment.