Real estate set to maintain recovery in 2025
Real estate set to maintain recovery in 2025
The real estate market is expected to continue its recovery in 2025, thanks to an increase in foreign capital, new legal policies, and stable demand across the sector. VIR's Quynh Chau talked with foreign consultants and investors on their assessment of the year ahead.
Edwin Tan, deputy CEO, Frasers Property Vietnam
Edwin Tan, deputy CEO, Frasers Property Vietnam |
Vietnam projects economic growth of up to 7 per cent in 2025, driven by growing foreign investment, robust exports, and improving domestic demand as the country establishes itself as an important node in the global manufacturing and supply chain network. Off the back of this significant growth momentum, we aim to grow our industrial and logistics portfolio to nearly 800,000 square metres of net lettable area in key industrial hubs by 2030.
We plan to leverage our strong market presence and established local networks to address the continued demand for high-quality and sustainable industrial facilities. On the commercial front, Ho Chi Minh City’s office market is experiencing significant growth, with multinational companies driving demand. Our commercial portfolio is set to continue delivering stable performance from our proactive management approach.
By leveraging tech and active community engagement, we seek to future-proof properties and enhance the workplace experience. We also seek opportunities to unlock value from our assets by developing them to their optimal potential while addressing the evolving market needs in Vietnam.
Hardy Diec – COO, KCN Vietnam |
Hardy Diec – COO, KCN Vietnam
KCN Vietnam remains optimistic about 2025, as we anticipate strong growth in the industrial real estate sector, fuelled by Vietnam's rising global position as a manufacturing hub. We are focused on scaling our green and sustainable land portfolio, with plans to develop one million square meters of leasable industrial space by the end of 2025. This includes ready-built warehouses and factories that meet the strictest environmental standards to align with global investor expectations and Vietnam's net-zero commitments.
In the face of global geopolitical volatility, real estate firms must maintain flexibility to quickly adapt to unexpected changes. Flexibility is at the core of our strategy, with projects designed to meet the diverse needs of high-tech, logistics, and multi-sector manufacturers. We are also focused on enhancing operational efficiency and reducing costs for our tenants through strategic locations and modern infrastructure.
Our goal is not just to entice investment, but to contribute to Vietnam's sustainable economic growth. With a strategic land portfolio, advanced facilities, and a commitment to green development, KCN Vietnam is well-positioned to contribute to the country's next wave of high-value overseas investment and industrial transformation.
David Jackson – Principal and CEO, Avison Young Vietnam |
David Jackson – Principal and CEO, Avison Young Vietnam
Industrial and logistics real estate will continue to lead the market thanks to the trend of supply chain diversification and the 'China +1' strategy. Vietnam, with its favourable geographical location, improved investment environment, and relatively stable politics, has the potential to become an important production base. Demand is forecast to increase in areas such as industrial land, warehouses, ready-built factories, and high-tech industrial facilities.
The housing segment is expected to improve from mid-2025, mainly thanks to legal breakthroughs in several projects. Urbanisation, potential large urban suburbs, and satellite markets promote the development of mid-range commercial, affordable, and social housing. The expanded Ho Chi Minh City area (Cu Chi, Hoc Mon and Binh Chanh districts) and neighbouring areas such as Binh Duong and Dong Nai province will be hot spots. In the north, Bac Ninh, Bac Giang, and Haiphong are also forecast to grow.
Other commercial real estate such as offices and retail are also forecast to be more vibrant with many new projects, creating competitiveness and excitement in the coming years.
Vietnam's real estate market still has a lot of room for development thanks to strong demand. However, some challenges remain, such as delayed legal procedures, unbalanced supply, and rapidly increasing prices.
Individual investors should update themselves on the latest legal frameworks, market trends, infrastructure development policies, and the financial background of any developer before considering any moves.
Liquidity will be a key issue in the negotiation process for both the seller and the buyer. Negotiation time may also be prolonged because the process of implementing and applying new laws takes time.
