Quarterly Report of Vietnam Real Estate quarter II/2026

Rebalancing the market and strengthening regional connectivity through infrastructure development.

Ho Chi Minh City, Vietnam – Avison Young Vietnam today released its Q2/2026 Quarterly Report of the Vietnam Real Estate market. The report analyzes the performance of Vietnam's major real estate sectors in Q2/2026, while highlighting their medium- and long-term growth prospects.

In the first half of 2026, Vietnam's disbursed foreign direct investment (FDI) reached its highest level in five years, capital contributions and share acquisitions surged by nearly 90%, while public investment disbursement also improved year-on-year. These macroeconomic drivers continue to support the market’s ongoing supply-demand rebalancing.

David Jackson, Principal and CEO, Avison Young Vietnam commented: “Higher interest rates, slower market liquidity, and prolonged buyer caution should be viewed as a necessary part of the market's adjustment process, one that will move it toward a more sustainable growth cycle. From a macro perspective, record FDI disbursement and rising M&A activity continue to reflect investor confidence in the market, while accelerated implementation of major transport infrastructure projects is expected to strengthen regional connectivity and create new growth hubs. In this context, a project's competitiveness will no longer be defined by the scale of its supply, but by its ability to meet genuine end-user demand and generate sustainable long-term cash flow”.

Condominium market consolidates and rebalances after a period of rapid growth

High selling prices and elevated borrowing costs continued to weigh on absorption, with localized price corrections emerging in the secondary market across selected products and segments. Capital increasingly flowed toward homes that meet genuine end-user demand and offer stable rental income potential.

In Q2/2026, the expanded post-mergers Ho Chi Minh City market recorded nearly 12,000 newly launched primary condominium units. While primary prices in central districts remained elevated at 3,500–5,900 USD/sqm, secondary prices declined 5–8% to approximately 4,450 USD/sqm. Absorption rates varied considerably by segment, from below 30% for luxury developments to 28–35% for mid-range projects. Between 2027 and 2030, HCMC is expected to welcome more than 30,000 new condominium units annually.

In Hanoi, more than 4,000 condominiums were launched during the quarter, with most new supply concentrated in the high-end and luxury segments. Average primary prices in the west and east areas ranged 3,250-4,400 USD/sqm, while that in the inner city reached 5,400–9,500 USD/sqm, up 2% quarter-on-quarter. Prices that continue to exceed the affordability of many homebuyers dampened demand, accompanied by secondary market declines of up to 12% in some areas. Slower transaction, prolonged buyer caution, and the near-disappearance of short-term speculative investment point to a necessary adjustment toward a healthier supply-demand balance. Meanwhile, ongoing efforts to expand affordable housing supply are expected to improve housing accessibility for the capital's residents.

Da Nang's condominium market maintained solid momentum. New supply remained dominated by high-end and luxury developments, including Ecolife Signature, the M2 Tower at Meridian, and newly released inventory at Capital Square. Primary prices varied significantly by location: An Hoa and Hai Cuong commanded the highest prices given their strategic locations, followed by Son Tra and Ngu Hanh Son, while Lien Chieu remained the city's most affordable market, catering primarily to genuine owner-occupiers. Demand from Hanoi- and HCMC-based investors continued to support market liquidity and absorption.

An iconic hotel in HCMC leads the way in sustainable hospitality, while Da Nang's hotel and resort market surges during peak summer season

Ho Chi Minh City's four- and five-star hotel market remained stable in Q2, supported primarily by business travelers, foreign professionals, and high-spending international visitors. A notable milestone came on June 5, when Sheraton Saigon Grand Opera Hotel became Marriott International's first property in Vietnam to achieve LEED Gold certification. Over the next two years, several international brands are expected to enter the market, including Nobu Hotel Ho Chi Minh City, Four Points by Sheraton, and JW Marriott in Can Gio. Across the expanded HCMC area, the upscale hotel pipeline is also set to grow following development partnerships between IHG Hotels & Resorts and Meraki Land, and between Sun Group and Marriott International.

Meanwhile, Da Nang's hotel market saw occupancy rates consistently reach peak levels, with average room rates at five-star hotels rising alongside growing international arrivals. Following a series of restructuring and brand-conversion transactions in the first half of this year, several beachfront resorts along Vo Nguyen Giap Street and on the Son Tra Peninsula were upgraded to higher-end international brands, accelerating Da Nang's repositioning as a premium hospitality and resort destination. While demand continues to recover strongly, 18 projects currently under development – equivalent to nearly 30% of the city's existing room supply – could intensify competition and place downward pressure on occupancy rates and average room prices in the coming years.

 

Office market sees emerging signs of new satellite business hubs

In Q2/2026, Grade A office buildings in HCMC's central business district (CBD) continued to attract demand from technology companies, financial institutions, professional service firms, and FDI enterprises. The future supply pipeline is being shaped by two key trends: large-scale, modern developments built to international standards –exemplified by the Grade A project The Kross, expected to add 50,499 sqm of gross floor area – and the expansion of office space into emerging satellite growth hubs, highlighted by the groundbreaking of an office tower within the Vinhomes Grand Park urban area.

In Hanoi, leasing activity was driven mainly by the absorption of two newly completed projects, The Marc 88 and Oriental Square, lifting the Grade A absorption rate slightly. Future supply continues to shift toward the Ciputra urban area and West Lake, where large-scale mixed-use developments integrating offices, retail, hotels, and residential units are taking shape. These projects are expected to add high-quality supply while strengthening the long-term outlook for the western part of the city.

Da Nang's office market outlook remains positive over the medium and long term, supported by plans for a 300-hectare International Financial Centre. Viettel Hub in Hoa Cuong Ward is considered an anchor project in this context: scheduled to begin operations next year, it comprises two office towers of 25 and 18 storeys, providing approximately 100,000 sqm of high-quality office space, and is expected to become a key driver in attracting financial institutions, investment funds, fintech companies, and related business service providers.

Retail sector shifts its competitive focus from expansion to location quality, operational efficiency, and customer experience

In Q2/2026, shopping malls in HCMC's central areas recorded stable leasing demand, led by fashion, F&B, cosmetics, and entertainment operators. Strong leasing activity reflected retailers' confidence in domestic consumer spending and continued growth in tourist arrivals. Several international premium fashion brands, including Louis Vuitton, Marithé François Girbaud, and POLO USPA, expanded their store footprints to strengthen brand presence and improve business performance.

In Hanoi, the most notable development during the quarter was the strategic partnership between Vincom Retail and Central Retail, paving the way for GO! hypermarkets to enter the Vincom system, beginning with Vincom Plaza Dan Phuong in the rapidly urbanizing western area. This reflects a broader trend toward upgrading and diversifying integrated retail formats within new urban developments, creating additional momentum for tenant demand. Fashion, F&B, supermarkets, entertainment, and family-oriented services continued to lead leasing activity.

While HCMC and Hanoi recorded no new retail supply during the quarter, Da Nang added 21,000 sqm of leasable space with the opening of AEON MALL Da Nang Thanh Khe. The launch marked an important milestone in the Japanese retailer's Central Vietnam expansion that also improved market liquidity and contributed to reshaping the city's retail landscape.

Overall, Vietnam's retail real estate market across the three key cities is expected to maintain sustainable growth in the coming quarters, with competition increasingly focused on optimizing tenant mix, enhancing service quality, and delivering better shopping experiences to attract customers and encourage longer dwell times.

Landed properties continue to attract buyers with long-term value as several large-scale projects were launched in Q2

In the former HCMC area, nearly 2,400 landed residential units were launched in Q2/2026, primarily from two large-scale developments: Vinhomes Green Paradise in Can Gio and Vinhomes Saigon in Hoc Mon. The substantial increase in suburban supply established new primary price benchmarks of 6,800 USD/sqm (Can Gio) and 4,900 USD/sqm (Hoc Mon). Market liquidity has yet to improve significantly, however, with absorption rates remaining around 25–30% as buyers stay cautious amid interest rate fluctuations.

Hanoi's market saw a noticeable adjustment in Q2/2026. Primary prices continued to rise, ranging from approximately 4,500 to 13,000 USD/sqm, partly reflecting land acquisition and site clearance costs moving closer to market levels. Declining affordability reduced actual market absorption to around 20%, while defensive sentiment continued to dominate the secondary market.

By contrast, Da Nang's market recorded more positive momentum, highlighted by the launch of approximately 3,000 units eligible for sale at the Vinhomes Hai Van Bay project, with an average asking price of around 3,800 USD/sqm.

Although market liquidity requires more time to recover, landed properties within well-planned urban developments, offering comprehensive amenities and strong transport connectivity, are expected to maintain positive long-term growth prospects as credit conditions and market sentiment continue to improve.