Quarterly Report of Vietnam Real Estate quarter III/2025

Ho Chi Minh City, Vietnam – Avison Young Vietnam today released its Q3/2025 Quarterly Report of the Vietnam Real Estate market, providing an analysis of developments across key real estate segments during the third quarter. The report also highlights structural changes and growth prospects in Ho Chi Minh City (HCMC) and Da Nang following recent provincial mergers.

Vietnam’s real estate sector showed a credible recovery in the first nine months of 2025, supported by strong GDP growth and stabilized macro indicators. Over 4,000 new real-estate companies formed year-to-date and policy reforms have materially improved market access and sentiment.

“FTSE Russell’s decision to upgrade Vietnam from Frontier to Secondary Emerging Market status marks a major vote of confidence in the country’s economic progress. While the change takes effect in September 2026 following a March review, the full impact will only be realised if and when MSCI (Morgan Stanley Capital International) follows with a similar reclassification. Nonetheless, the move underscores Vietnam’s ongoing reforms in transparency, market access, and foreign investment facilitation. As the nation approaches the 40th anniversary of Đổi Mới in 2026, this milestone could signal the beginning of a new chapter – Đổi Mới 2.0 – characterised by deeper global integration and stronger FDI inflows.” – said David Jackson, Principal and CEO, Avison Young Vietnam.

Residential property: improved supply, diverged pricing by location and brand

In pre-merger HCMC, supply expanded across both condominium (Trellia Cove at Mizuki Park, The Privé, Lumière Midtown, and Kieu by KITA) and landed properties (266 units from Gladia By The Waters). Prices of newly launched condominiums were 5–8% higher than the market average. The high-end and luxury markets remained concentrated in Nam Rach Chiec area, where Eaton Park reached 8,400 USD/sqm, alongside upcoming launches such as Palm City and The Global City’s CT5 – setting new pricing benchmarks. Elevated prices have prompted more cautious sentiment among both end-users and short-term investors, while developers continue to offer promotional sales programs to stimulate demand. In the Southwestern part of pre-merger HCMC, landed properties were more active with large-scale projects (Vinhomes Green City, Eco Retreat, Kinghill Residence, and LA Home), which are shaping new growth clusters that complement the city center through diverse supply and accessible pricing.

In Hanoi, roughly 2,000 new condominium units were launched across ten projects, concentrated in the East of the city (Vinhomes Ocean Park, Masteri Lakeside), at 2,350–3,350 USD/sqm. The market spans a full range of segments – from luxury (Sun Feliza Cau Giay, The Nelson Private Residence) and upper mid-end (Masteri Grand Avenue, Hausman Premium Residence, Imperia Signature Co Loa) to mid-range developments (The Senique Hanoi, The Lake, and The Paris at Vinhomes Ocean Park). Most buyers are end-users or long-term investors, showing limited borrowing appetite despite lower lending rates. Secondary market activity remains focused on well-located, branded projects that offer stable appreciation and rental yields.

In Da Nang, 500 new condominium units were launched in Q3 (Masteri Rivera, M Landmark Residence) with attractive discounts and financing incentives, signaling stronger competition through promotions rather than price increases. Similar to HCMC, condominium prices here are increasingly differentiated by location and brand. Future supply is forecasted to be robust with around 5,900 units from Vinhomes Lang Van.

Sustained end-user demand and continued capital inflows are providing a solid foundation for the housing market. However, the upcoming 2026 land price framework, together with new tax and administrative changes, may elevate development costs. As a result, transparency, compliance, developer reputation, infrastructure connectivity, and practical use value have become the key decision-making criteria for both buyers and investors.

Hotels & Resorts and Serviced Apartments: Steady demand, quality and branding remain key

Vietnam’s accommodation sector is entering a phase of quality enhancement. In HCMC, long-stay serviced apartments recorded solid demand, particularly for larger units (2–3 bedrooms) as seen in the fully-occupied Nikko Saigon. The hotel market also expanded with 120 refurbished rooms added from the Grand Opera Tower at the Sheraton Saigon Grand Opera. Post-merger HCMC has been repositioned as a major destination for international tourism, business meetings, and large-scale events, driving diversified demand across submarkets: HCMC and Binh Duong for business travel; Vung Tau, especially Ho Tram and Con Dao, for premium leisure, where room rates remain among the highest in the region.

In Hanoi, the Parkroyal Serviced Suites (122 units) opened in Q3. The Capital’s pipeline is shifting toward the upscale segment, including Shilla Monogram and Ascott Tay Ho (both Grade A), along with 2,800 new hotel keys – 74% of which are 5-star. Pre-merger Da Nang is also set to welcome 680 new keys from the Saigontourist five-star hotel and the Fivitel Nam Hoi An – Fivires Resort complex. Both markets achieved higher year-on-year occupancy, supported by the National Day holidays and robust domestic travel. The new Da Nang has emerged as a major mid-to-upscale hospitality hub, leveraging its infrastructure and abundant tourism assets.

International arrivals are projected to continue rising thanks to relaxed visa regulations and expanded exemptions, driving demand for professionally managed branded accommodation. Flexible leasing terms and diversified guest experiences – including F&B, MICE, and amenity-rich environments – will be essential to sustaining occupancy and improving average daily rates (ADR).

Office: Grade B dominates, flexible workspaces gain traction

In HCMC, Saigon Marina IFC and DATC Building joined the market in Q3. Grade A occupancy edged up to 91%, while Grade B rents rose 3% quarter-on-quarter to 32.5 USD/sqm/month, reflecting strong demand for well-managed, well-located buildings offering competitive asking rents. Following the merger, HCMC’s office stock is now heavily weighted toward Grade B (nearly 1.6 million sqm versus 671,000 sqm of Grade A space), aligning with the needs of SMEs, startups, and organizations seeking adaptable work environments.

In Hanoi, construction resumed on a 21-storey office tower within the Giang Vo Complex, while in Da Nang, the International Financial Center (ICT Tower) is scheduled to commence operations in Q4/2025. Both cities recorded stable rental and occupancy levels compared with the previous quarter.

Looking ahead, Grade B offices in the new HCMC are expected to maintain positive momentum due to their cost advantages and flexibility, while Grade A offices remain the preferred choice for premium tenants and multinational corporations. The rise of “office hub” models integrating lifestyle and business amenities is expected to become more visible as future supply expands beyond the central districts.

Retail: Flexibility remains vital to sustaining occupancy and footfall

Retail rents and occupancy levels in HCMC remained stable in Q3, supported by consistent demand from F&B and entertainment tenants. Several brands expanded their footprints – including Oh!Some! (Thiso Mall), KKV (AEON Tan Phu), and Pop Mart’s flagship store (Van Hanh Mall) – while others upgraded existing spaces, such as Muji at Parkson Dong Khoi, the F&B zone at Vincom Dong Khoi, and the retail podium at Metrolink An Phu. After the merger, the city’s total retail floor area has expanded, particularly in the shopping mall segment. The CBD core continues to hold its leading position thanks to high population density, strong purchasing power, and developed retail infrastructure.

In Hanoi, new future supply will come from the 43,000 sqm Westlake Square Mall, now under construction in Starlake urban zone. In Da Nang, a new mall project is being prepared in Ngu Hanh Son, while Lotte Duty Free has announced expansion plans. Nonetheless, the example of VV Mall – with an occupancy rate of just 25% - highlights that successful retail strategies must prioritize dining and leisure experiences over duty-free retailing to better serve both tourists and local shoppers.

Experience-led retail formats – including F&B, entertainment, and event spaces – will continue to determine footfall and occupancy performance amid growing supply and e-commerce competition. Understanding consumer behavior, curating a resilient tenant mix, and maintaining flexibility in space utilization will be critical success factors for retail real estate in the period ahead.