Data from Q1/2026  

Table of content 1. Overview: A "stress test" phase for the market 2. Office and Retail: Stability Driven by Premium Demand 3. Residential: Financial Pressures End The Low-Interest Era 4. Serviced Apartments: Natural Selection Enhances Efficiency 5. Villas and Townhouses: The Suburban Shift 6. Mid-term Outlook: Opportunities from Infrastructure and Urban Expansion

1. Overview: A “stress test” phase for the market

Savills Vietnam has officially released its Ho Chi Minh City real estate market report for Q1/2026, highlighting the first three months of the year as a true “stress test” for the market. 

While disbursed FDI reached its highest level in the past five years, providing a solid growth foundation, floating interest rates of up to 12% are triggering a strong natural filtering process. This is pushing the market towards products with genuine value and high operational quality. 

Vietnam’s economy began 2026 with an impressive GDP growth rate of 7.8%. Notably, disbursed FDI reached USD 5.4 billion, the highest Q1 figure since 2021. This reinforces international investor confidence and supports sustained demand across industrial real estate, office, and serviced apartment segments. 

2. Office and Retail: Stability Driven by Premium Demand 

The office market remains balanced with occupancy at 88%. Landmark developments such as IFC Ho Chi Minh City have attracted Grade A tenants, while accelerating the positioning of Thu Thiem as a new office hub of the city.

In the retail sector, despite no new supply, demand from F&B, fashion, and entertainment continues to recover strongly. Total retail sales of goods and consumer service revenue in Ho Chi Minh City rose 13% year-on-year to VND 475 trillion, providing a solid base for occupancy improvement in 2026.

3. Residential: Financial Pressures End the Low-Interest Era 

The apartment segment recorded declines in both primary supply and absorption rates. New supply reached approximately 1,900 units, while the overall absorption rate fell to 40%. 

Tighter credit conditions and rising interest rates have significantly reshaped buyer sentiment. Developers have shifted from 0% interest support schemes to fixed-rate packages of 9%–10%. Preferential mortgage rates now stand at 8%–9% per annum, while floating rates may exceed 12%, creating considerable cash flow pressure once incentive periods expire. 

Commenting on the situation, Troy Griffiths, Senior Advisor at Savills Vietnam, notes, “Growing interest rates are squeezing market liquidity. Buyers are becoming increasingly cautious, prioritising products with realistic pricing.”  

Despite the overall slowdown, clear segmentation is emerging. Affordable housing continues to perform better, driven by genuine demand, with absorption rates about 10 percentage points higher than the market average. The eastern area remains the leading supply hub, accounting for 85% of total primary stock. 

4. Serviced Apartments: Natural Selection Enhances Efficiency

The serviced apartment segment is undergoing a natural filtering process towards more sustainable development. Total supply declined to around 7,300 units as underperforming projects exited the market or temporarily closed for renovation. 

Neil MacGregor, CEO of Savills Vietnam, observes, “Although supply has decreased, overall market performance has improved, supported by the gradual exit of less competitive projects and stronger demand for well-operated developments.”

In practice, occupancy remains high at 84%, pushing average rents to nearly VND 600,000 per sqm per month.  

5. Villas and Townhouses: The Suburban Shift

The landed property segment also saw a slowdown in Q1/2026, with absorption at 11%. Developers have become more cautious with new launches amid tighter credit controls. 

However, primary prices continued to rise to VND 199 million per sqm of land, reflecting the long-term value of this asset class, particularly in projects with clear legal status and strong construction progress. 

6. Mid-term outlook: Opportunities from infrastructure and urban expansion

Although the residential market is facing a short-term slowdown due to financial pressures, its underlying fundamentals remain intact. Recovery prospects are closely tied to infrastructure improvements and the development of suburban areas. 

The shift of supply towards areas with larger land banks and improving infrastructure is expected to drive the emergence of large-scale urban developments. This will help ease price pressures while opening up new opportunities for buyers as legal and credit bottlenecks are gradually resolved.