The rapid pace of an ageing population is creating a new segment for Viet Nam’s real estate market: housing and services tailored to the elderly. Though still taking shape, the senior living sector holds strong potential with multiple challenges related to regulations, policy, and social awareness.

Viet Nam is entering the fastest phase of population ageing, while the senior real estate segment, including retirement housing, wellness resorts, and healthcare-integrated models, remains underdeveloped. In contrast, countries such as Singapore and Japan have already transformed “senior living” into a multi-billion-dollar investment industry, whereas Viet Nam has only seen a few early-stage pilot projects.

According to the General Statistics Office, by 2038, one in every five Vietnamese will be over 60 years old. The United Nations Population Fund (UNFPA) projects that by 2050, the elderly will account for more than 25% of the country’s population. Meanwhile, Viet Nam’s fertility rate fell from 1.96 children per woman in 2023 to 1.91 in 2024, the lowest level ever recorded. Experiences from developed economies show that once fertility rates drop this low, recovery becomes extremely difficult.

The rapid demographic shift is creating an unexplored opportunity gap in the growing demand for specialised housing, healthcare, and wellness products.

Unrealised High Growth Potential

According to Neil MacGregor, Managing Director of Savills Vietnam, “The senior housing market in Viet Nam remains nascent and underdeveloped; most offerings are still basic or charitable in nature. However, premium models such as the Phuong Dong Asahi Nursing Home in Ha Noi have demonstrated clear potential for high-quality senior living developments.”

Savills projects that Viet Nam’s elderly care market will grow from US$2.3 billion in 2024 to US$3.6 billion by 2032, representing a compound annual growth rate (CAGR) of 5.81%. In tandem with this growth, wellness retreats and healthcare-integrated housing models are gaining attention as Vietnamese consumers become increasingly health-conscious and seek preventive care solutions.

The 'Savills Prospects: Asia Pacific 2025' report highlights that the Asia–Pacific region will have 1.3 billion people aged 60 and above by 2050, driving significant demand for senior housing and care services. Within this regional context, Viet Nam, with competitive living costs and rapid urbanisation, is a promising market. MacGregor adds, “Models such as assisted living, co-housing, and wellness resorts with medical services will become mainstream trends over the next 5-10 years.”

Barriers Hindering Market Development

Despite its potential, Viet Nam’s senior housing market continues to face multiple barriers. MacGregor points out that the main challenges stem from a fragmented legal and policy framework.

“Developers struggle with complex licensing procedures, limited tax incentives, and a general lack of public awareness regarding independent senior living models.”

In addition, gaps in healthcare and transport infrastructure, as well as a shortage of skilled caregiving professionals, are barriers to investor participation.

Cultural norms also play a key role. The tradition of multigenerational living means most elderly people still prefer to live with their children, even though independent or assisted-living models could offer a better quality of life and professional care.

A Call for Policy Framework and Strategic Support

To unlock this market’s potential and reach the level of development seen in regional peers, Viet Nam needs a clear, coordinated policy framework. MacGregor suggests that the government could introduce targeted tax incentives, improve land access, and streamline approval processes for senior housing projects. Expanding social housing schemes to include elderly-specific units would support inclusivity and accessibility. These units should be connected to healthcare and public services.

Encouraging public–private partnerships (PPP) and investing in specialised workforce training, including caregivers, geriatric nurses, and wellness professionals, will also be key to building a sustainable ecosystem.

According to Savills, developing this asset class is not only an economic opportunity but also a long-term social welfare solution.

MacGregor emphasises, “With a clear legal framework and supportive policies, senior housing could become a new asset class, both profitable and socially meaningful.”

As Viet Nam’s middle class expands and people become more focused on post-retirement quality of life, demand for independent, health-oriented living models will continue to grow.

Viet Nam now has a rare opportunity to shape a new market, one where real estate is not just about owning a home but about living well later in life. If this momentum is seized, senior housing could become a key growth pillar of Viet Nam’s real estate industry in the coming decade.