Quarterly Report of Vietnam Real Estate quarter I/2026

Caution dominates the residential segment; industrial real estate gains from infrastructure momentum; and hospitality thrives during the peak holiday season.

HCMC, Vietnam – Avison Young Vietnam today released its Q1/2026 Quarterly Report of the Vietnam Real Estate market. The report provides an analysis of performance across key real estate segments during the first quarter, while also outlining medium- and long-term growth prospects.

As of the end of Q1, total disbursed foreign direct investment (FDI) in Vietnam’s real estate sector reached 389.5 million USD, accounting for 7.2%. Housing supply continued to recover, but transaction volumes remained modest amid macroeconomic volatility and sharply rising lending rates. Real demand, legal transparency, and long-term investment efficiency are the three key drivers expected to guide the market into an upcoming phase of consolidation and restructuring.

“Vietnam’s real estate market is entering a new phase, where global capital is shifting from exploration to execution. Over the past decade, Vietnam has been widely viewed as a high growth opportunity, but today we are seeing a more deliberate and strategic approach from investors. Capital is no longer simply testing the market. It is being allocated with clearer intent, targeting scale, quality, and long term positioning. This marks an important transition in market maturity, where Vietnam is increasingly viewed not just as an emerging play, but as a core part of regional investment strategies. Vietnam has gone from a market investors watch; to one they can no longer ignore.” – said David Jackson, Principal and CEO, Avison Young Vietnam.

Condominium segment sets new price benchmarks as liquidity slows

In Q1/2026, primary condominium prices set new high records across three major markets, while rising interest rates and economic fluctuations led to a broad-based decline in liquidity.

In post-merger Ho Chi Minh City (HCMC), primary prices reached 3,900 USD/sqm. The quarter recorded 15,000 newly launched units, of which 35% came from new projects, concentrated the most in Binh Duong. After each launch phase, prices increased by an average of 3% quarter-on-quarter. Primary market liquidity improved, while the secondary market remained subdued.

In terms of supply, the HCMC market was dominated by high-end and luxury segments, with projects from Masterise Homes and Sunshine Homes. In Ba Ria – Vung Tau, two coastal developments of Blanca City (Sun Group) and Maison Grand (Phu My) contributed to market vibrancy. Meanwhile, Binh Duong added mid-range supply, helping to balance the overall product mix of the greater HCMC market (post-merger).

In 2026, several projects are expected to be completed, including Sunshine Sky City (V7–V8–V9) with 796 units in HCMC; Green Tower with 1,296 units in Binh Duong; and Maison Grand with 1,248 units in Ba Ria – Vung Tau.

In Hanoi, the average primary price reached 3,950 USD/sqm in Q1, marking a 30% year-on-year growth. Approximately 10,000 units were launched, mainly from Masterise Homes, Sunshine Group, and MIK Group, largely within the upper mid-end and high-end segments, concentrated in the Southwest and Southern areas. Around 4,000 units were introduced after the Lunar New Year.

Despite abundant supply, both primary and secondary market liquidity declined. This signals the end of the rapid growth phase and the beginning of a market consolidation cycle. Between 2026 and 2027, an additional 40,000 units are expected from large-scale suburban townships in Dong Anh, Dan Phuong, Gia Lam, and Nam Tu Liem.

In Da Nang, primary prices reached 3,574 USD/sqm, up 3% compared to the end of 2025, while absorption slowed. Quarterly supply included 200 new units and over 1,600 units eligible for sale from existing projects. Four projects are expected to be completed this year: The Sang Residence, Peninsula Danang, Sun Symphony Residence, and Masteri Rivera Danang.

Strong new supply of landed properties in HCMC, flat growth outlook in Hanoi, slower momentum in Da Nang

In the first two months of 2026, new supply in HCMC surged, bringing total inventory to nearly 6,000 units. Supply was primarily concentrated in Can Gio (Vinhomes Green Paradise), the central core (SOLA in The Global City), and inner-ring areas (Essenia Parkway).

Primary prices declined slightly quarter-on-quarter due to significantly lower price levels in Can Gio compared to central districts, before slightly increasing toward the end of the quarter to approximately 7,800 USD/sqm. Despite ample supply, liquidity did not see a breakthrough, reflecting ongoing market filtering and more cautious transaction behavior.

In Hanoi, no new supply was recorded. Prices remained elevated, averaging 9,600 USD/sqm in both inner-city and suburban areas along the Ring Road 3.5 corridor, and reaching up to 13,000 USD/sqm in established residential areas such as Hoang Liet, Tuong Mai, and Dong Anh. The market is forecast to slow down or remain flat during 2026–2027.

In Da Nang, primary landed property prices ranged from 5,000–8,500 USD/sqm in central (Han Riverfront) and near-central areas, and 2,800–4,000 USD/sqm in suburban zones. Prices increased by 12% year-on-year in Q1/2026, though performance varied: some projects set new price benchmarks, while others softened depending on location and legal status. Liquidity dropped by nearly 40%, yet no distress selling was observed.

Industrial real estate in HCMC attracts high-tech investors as the City increases infrastructure investment

In Q1/2026, HCMC accelerated infrastructure development with key projects such as Can Gio Bridge, Phu My 2 Bridge, Cat Lai Bridge and the Hiep Phuoc LNG power plant. Around April 30, the city is expected to commence construction on three major port projects in the Cai Mep and Can Gio areas, providing strong momentum for the industrial real estate market.

During the quarter, the market remained stable, with average rents of approximately 270 USD/sqm/term and an occupancy rate of 93%. The city currently has 64 operational industrial parks and export processing zones, more than half of which are fully occupied, while the remainder report occupancy rates above 80%.

The shift toward high-tech industries and digital infrastructure is becoming increasingly evident, highlighted by data center projects from CMC and Sembcorp. The city is also promoting eco-industrial park models, with Phu My 3 Industrial Park set to become the first officially recognized project of its kind.

In Hanoi, rents remained stable at 225 USD/sqm/term, with an occupancy rate of 88%, and most industrial parks fully occupied. Future supply is estimated at around 2,000 hectares, though progress depends on infrastructure development and site clearance.

In Da Nang and the former Quang Nam area, notable developments included new projects such as Tam Anh – An An Hoa Industrial Park (436 hectares) and Tam My Tay Industrial Cluster Phase 2 (3 hectares).

HCMC’s office segment focuses on occupancy, new supply in Hanoi, clear supply–demand restructuring

In Q1/2026, office leasing activity in HCMC improved slightly, driven by demand from international companies. Occupancy rates reached 92% for Grade A and 90% for Grade B, with some projects such as ThaiSquare The Merit and The Hallmark achieving full occupancy. With no new supply, leasing activity focused on existing projects, reducing competitive pressure on rental rates. The city’s business environment is expected to continue supporting stable leasing demand.

In Hanoi, supply became more diversified with the completion of two Grade A projects, The Marc 88 and IFC Hanoi (part of the B1CC3 Complex) in Q1, along with Oriental Square set to enter the market soon. Rental rates remained stable at 35 USD/sqm/month (Grade A) and 24 USD/sqm/month (Grade B), though new supply may increase occupancy pressure.

Overall, the steady increase in Grade A office supply in both cities reflects a strategic focus on high-quality assets that meet operational standards, offer enhanced amenities, and achieve green certifications. On the demand side, tenants are increasingly focused on optimizing space and enhancing user experience, driving the adoption of flexible workspace models.

New hotel supplies recorded in HCMC and Hanoi, hospitality market thrives across key cities amid peak holiday travel season

In Q1/2026, total tourist arrivals reached 17.8 million, up 15% year-on-year, boosting demand for hospitality real estate.

HCMC and Hanoi welcomed two new hotels in March: Rêve HCMC – Vignette Collection by IHG (52 rooms) and Fairmont Hanoi (241 rooms). Average daily rates (ADR) in the 4- and 5-star segments recorded solid growth. In HCMC, average rates reached 197 USD/night (5-star) and 136 USD/night (4-star). The entry of the international Fairmont brand also contributed to a 6% growth in high-end room rates in Hanoi, reaching 185 USD/night.

Premium hotel supply is expected to continue expanding, with upcoming projects such as Caption by Hyatt Ba Son, The Okura Prestige Saigon, Hyatt Regency Ho Tram in HCMC, and Hanoi Shilla Monogram – B3CC1 Complex, Hyatt Centric Hanoi Centre, and Four Seasons Hotel Hanoi in Hanoi.

In Da Nang, market performance improved remarkably following administrative restructuring, with both occupancy and revenue rising sharply compared to Q1/2025. By the end of the quarter, room rates increased by 10% year-on-year, with 4-star and 5-star segments averaging 68 and 292 USD/night respectively, and occupancy rates of 85% and 88%. With future projects such as Mandarin Oriental (2028), The Arbora Residence (2028), and Vinhomes Hai Van Bay, Da Nang’s hospitality market is transitioning from mass tourism to high-end resort development.

Retail real estate maintains resilience on the back of strong domestic consumption

In Q1/2026, total retail sales of goods and consumer service revenue increased by 10.9% year-on-year, equivalent to 7% when excluding price factors. Supported by strong domestic consumption, retail real estate maintained growth momentum with high occupancy rates and stable rental prices, reflecting a balanced supply–demand dynamic. Leasing activity remained vibrant in F&B, fashion, cosmetics, and entertainment sectors.

In HCMC, demand concentrated in shopping malls with high foot traffic and strong connectivity. Tenant mix restructuring became more evident, with landlords increasing the share of F&B, entertainment, and experiential retail. Many brands also upgraded or expanded stores with a more streamlined approach, indicating selective growth strategies. Following administrative mergers, supply is extending into satellite areas, with projects such as Dragon Mall (Cho Quan Ward, expected completion in 2026) and Aeon Mall Ba Ria – Vung Tau.

In Hanoi, leasing activity remained dynamic with the entry and expansion of international brands. Bershka made its debut in Vietnam at Hanoi Centre, Galaxy Cinema launched a flagship theater, and Hermès opened a new store on Trang Tien street. These developments reinforced the appeal of the urban core and sustained high occupancy rates. A notable upcoming project is Thiso Mall in the Starlake urban area, expected to be completed this year.

In Da Nang, the market anticipates the opening of Aeon Mall Da Nang this summer and Aeon Mall Hoa Xuan next year, which will help expand supply and meet growing demand as consumption and tourism continue to recover.