Asia Pacific’s real estate market closed 2025 amid ongoing geopolitical uncertainty and continued global supply chain realignment, both of which weighed on investor sentiment across the region. Despite these challenges, total transaction volume increased by 8.7% YoY, with a strong Q4 rebound, driving activity to its highest level since 2022. The recovery reflects improving macroeconomic visibility and the gradual return of investment capital to key sectors. 

Against this backdrop, Viet Nam's real estate market is entering a new phase. Following a period of adjustment and restructuring, market fundamentals are showing signs of strengthening, laying the groundwork for a more selective and sustainable growth cycle. 

According to Giang Huynh, Director, Research and Consultancy at Savills HCMC, last year marked an important turning point. Looking ahead, the 2026–2027 period will present growth opportunities, supported by stronger economic fundamentals, the implementation of new legal frameworks and a more disciplined approach to capital allocation. 

Strong Macroeconomic Fundamentals Built From 2025

According to Savills Vietnam, the country’s macroeconomic indicators during 9M/2025 showed continued positive momentum. The GDP increased by 7.9%, among the highest levels recorded in recent years, while inflation remained under control at 3.3%. Total registered FDI reached US$28.5 billion, up 15% YoY, reflecting continued investor confidence in Viet Nam’s medium- and long-term outlook. 

By the end of 2025, GDP grew by 8%, while total realised investment increased by 12.1% YoY. Investor confidence remained strong, with registered FDI reaching US$38.4 billion and realised FDI rising to US$27.6 billion, the highest level in five years. Capital inflows were led by Asian investors, including Singapore (27%), followed by China, Hong Kong and Japan. The trend reflects the country's growing role in regional supply chains and ongoing investment diversification.  

Foreign investment activity remained robust in the expanded HCMC, with total FDI reaching US$4.8 billion during 9M/2025. With the new geographic division, the former parameters continued to lead investment attraction, securing US$699 million in newly registered capital across 1,254 projects. This represented a 92% YoY increase and accounted for half of the total registered capital. 

According to Savills Q1 Real Estate Market Report, growth momentum remained strong, with GDP increasing by 7.8% and registered FDI reaching US$15.2 billion, up 43% YoY. Manufacturing and processing continued to attract the largest share of investment, accounting for 69% of total registered capital. Domestic consumption and tourism also recorded solid growth, with total retail sales and service revenue reaching VND1.9 quadrillion and international arrivals increasing to 6.8 million visitors.  

2026–2027 Growth Window Under New Legal  

According to Huynh, expectations for stronger growth are supported by several foundations. From 2026, the market will operate under the combined impact of new legislation, including the 2024 Land Law, the 2023 Housing Law, the Real Estate Business Law and the new land price framework effective from 1 January 2026. 

The new land price framework may increase financial obligations for developers and buyers in the short term. However, it is also expected to create a more transparent and fair investment environment over the long term. Previous bottlenecks around project land valuation may be gradually addressed, creating better conditions for future supply. 

At the same time, economic growth continues to be supported by stable FDI inflows and domestic consumption. Total retail sales of goods and services in the first nine months of 2025 exceeded VND5.2 quadrillion, with real growth above 7%. These factors directly support demand for housing, offices and commercial real estate in major urban areas. 

Infrastructure Emerges As The Strongest Growth Driver  

Looking ahead, infrastructure development is expected to play a central role in shaping Viet Nam's next growth phase. According to Su Ngoc Khuong, Senior Director, Investment at Savills Vietnam: 

"The two key factors supporting Viet Nam's performance in 2025 were greater policy clarity and stronger capital inflows. Looking ahead, infrastructure investment will become the primary growth driver, creating the foundation for a more sustainable and resilient market cycle in 2026." 

Infrastructure is increasingly a key factor reshaping Viet Nam’s real estate landscape, with 234 large-scale projects currently under development nationwide, representing a total investment of VND 3.4 quadrillion. Investment in key infrastructure projects over the next five years will improve inter-regional connectivity and support urban decentralisation. The future structure will also align with growth hubs along major transport corridors. 

Major projects, including Long Thanh International Airport, metro systems in Ha Noi and HCMC, collectively with over 380 km of newly operational North–South expressways, are opening up entirely new economic corridors. These developments are not only supporting industrial real estate growth but also encouraging the emergence of new growth hubs in surrounding satellite areas. 

Clear Divergence Across Real Estate Sectors 

Market activity over the past year indicates a clear shift in investor priorities. Capital is increasingly flowing towards asset classes that offer stable income streams, strong occupier demand and long-term growth potential. As the market enters a new cycle, performance is expected to diverge more clearly across sectors, locations and product quality: 

• Industrial and logistics real estate: Industrial real estate remains one of Viet Nam's strongest-performing sectors, supported by continued manufacturing growth, foreign investment and ongoing supply chain diversification. Demand for modern logistics facilities and well-connected industrial parks is expected to remain robust, attracting both occupiers and investors. 
• Residential real estate: The residential market showed encouraging signs of recovery in Q3/2025, with 5,200 units sold and an absorption of 51%, reflecting improving buyer confidence. However, affordability remains a key challenge as the supply of affordable housing continues to decline. This has shifted demand towards peripheral districts and neighbouring provinces, where prices are more accessible, and infrastructure connectivity is improving. At the same time, the sector continued to attract strong investor interest, supported by underlying housing demand and long-term urbanisation trends. 
• Office and commercial real estate: In HCMC, the office market remained resilient despite new supply entering the market. Total office stock reached nearly 3 million sq m, while occupancy remained around 90%, supported by steady demand from technology, information and communications, and financial services firms. The outlook for office and commercial assets is increasingly tied to location, building quality, operational standards and tenant demand. Retail property also continued to recover, supported by increasing domestic consumption and improving consumer confidence. 

M&A Activity Reflects Growing Preference for High-Quality Assets  

Investment activity continues to recover, although capital deployment is becoming increasingly selective. Investors are placing greater emphasis on asset quality, location and long-term growth potential, particularly in sectors supported by strong fundamentals. 

In Q4/2025, HCMC recorded several significant transactions involving coastal mixed-use developments, with a combined estimated value of US$664.5 million. These deals reflect investors' confidence in the long-term prospects of tourism-driven destinations and infrastructure-led growth. 

Meanwhile, investment activity in Ha Noi remained focused on prime retail and commercial assets, with several major transactions totalling US$138 million. The concentration of capital in established urban locations highlights continued demand for assets capable of generating stable income and long-term value. 

The participation of large domestic and international developers in residential and mixed-use projects across Binh Duong and HCMC further signals confidence in the market's next growth phase. As conditions improve, well-located, high-quality assets are expected to remain the primary beneficiaries of investment capital. 

Major transactions in Q4 2025 (Source: Savills Vietnam). 

Conclusion: Positioning for a More Selective Market  

Viet Nam has entered 2026 with stronger economic fundamentals, supported by resilient FDI inflows, expanding infrastructure investment and a more transparent regulatory environment. Collectively, these factors are creating favourable conditions for the real estate market while strengthening the foundation for long-term growth. 

At the same time, the investment landscape is becoming more selective. Rather than relying on broad market momentum, investors are increasingly prioritising assets with strong fundamentals, sustainable operating performance and strategic locations. This shift is encouraging a more disciplined approach to capital allocation across sectors. 

While challenges remain, including increasing land costs, housing affordability pressures and external economic uncertainty, real estate continues to be viewed as a long-term store of value. As the market evolves, investment decisions will be driven less by short-term expectations and more by asset quality, legal clarity and income-generating potential. 

Against this backdrop, Viet Nam is strengthening its position as one of Asia Pacific's most attractive real estate investment destinations, supported by solid fundamentals and a maturing market environment.

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