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Vietnam Real Estate & Mortgage Market Analysis

The Vietnam Real Estate & Mortgage Market size is estimated at USD 47.59 billion in 2024, and is expected to reach USD 87.46 billion by 2029, growing at a CAGR of 12.94% during the forecast period (2024-2029).

• The real estate market in Vietnam experienced difficulties in 2023 due to the economic downturn. However, the market started to improve in the latter half of the year. Over 70% of the viewers in HCMC and 90% in Hanoi projected the market would improve in 2024.
• Despite the economic difficulties in the first half of 2023, Vietnam’s industrial sector showed good growth in all asset types and regions, driven by high demand. New high-tech industries, such as electric vehicles and semiconductors, as well as traditional industries, showed interest in Vietnam, pointing to promising market growth in 2024.
• In both Hanoi and HCMC, there was a significant rise in office supply, which resulted in an increase in office vacancy rates in 2023. While rental rates for grade A stayed stable, grade B saw a drop in asking rents as new supply entered the market. On the other hand, in HCMC, asking rates for both grade A and grade B offices showed little change, and absorption was mainly driven by grade A buildings. Looking ahead, the office market is projected to witness flexible rental rates, tenant-friendly lease terms, and green and sustainable considerations.
• Vietnam’s retail market saw a number of new projects open in the past year, with the most notable being Lotte Mall Westlake Hanoi, which became the biggest shopping mall in the Hanoi area for the first time in four years. Other projects that had been in decline for some time also made a comeback in the last year, such as the renovated The Loop in Hanoi and the refurbished Hung Vuong Plaza in HCMC. Both cities saw strong rental growth in the last year due to the growth of luxury brands and lower vacancy rates.
• The year 2023 saw the lowest new supply in 10 years in both Hanoi (13,000 units) and HCMC (8,700 units) due to macroeconomic headwinds. Condominium prices in Hanoi increased by almost 15% Y-o-Y, while condominium prices in HCMC showed a flattening trend. In 2024, factors such as stable interest rates and forthcoming policy and legal changes were projected to boost buyer sentiment and help the market recover.

Vietnam Real Estate & Mortgage Industry Segmentation

Real estate is private property in the form of buildings and land. Real estate can be used for residential, commercial, or industrial purposes. The real estate market refers to the selling of real estate services by entities (organizations, sole traders, and partnerships) that rent, lease, and allow the use of buildings and land.

The real estate and mortgage market in Vietnam is segmented by type (residential, retail, logistics/industrial, hospitality, and office), value (premium, luxury, and affordable), and key cities (Ho Chi Minh City, Hanoi, Quang Ninh, and Da Nang). The report offers the market sizes and forecasts in value (USD) for all the above segments.