M&A in real-estate shifts to established assets

M&A in real-estate shifts to established assets

The real estate M&A landscape in Việt Nam is witnessing a shift towards acquiring established assets as rising energy prices and geopolitical tensions reshape investor preferences, as reported by Jones Lang LaSalle Vietnam (JLL).

An image of HCM City. Property investors are increasingly opting for acquiring existing assets over ground-up development. — VNS Photo Thu Ngân

Investors are increasingly opting for acquiring existing assets over ground-up development due to elevated construction input costs and tighter financing conditions, prompting developers to divest current projects rather than embark on new developments.

JLL's analysis reveals that investors are now more selective and risk-averse, focusing on projects with high transparency, prime locations, strong infrastructure connectivity, and reputable developers. Due diligence processes have intensified as investors prioritise capital preservation over speculative gains, placing emphasis on asset quality, proven cash flow generation, and sustainable long-term operational performance.

Despite facing challenges from the global macroeconomic environment, Việt Nam's real estate market continues to attract foreign investors in the first half of 2026.

According to statistics from the General Statistics Office, total registered FDI capital into Việt Nam in the first six months of the year reached approximately US$34.7 billion, up 61 per cent year-on-year, with manufacturing and processing sectors receiving the largest proportion, 82.6 per cent, with implications for commercial real estate. 

Foreign investors are prioritising resources toward actual production activities at factories and warehouses rather than direct real estate M&A transactions, which reached only 7.4 per cent of total inflows.

Tạ Mỹ Bách, director of capital markets, JLL Vietnam, shared: “We are witnessing a clear shift from investment strategies driven by capital appreciation expectations to those centred on asset quality and operational performance. In an environment where the cost of capital remains elevated, investors are increasingly prioritising assets that can generate stable cash flows, offer long-term competitive advantages, and meet sustainability objectives. These factors will be key determinants of capital allocation and investment attractiveness in the next phase of the market cycle.”

The residential sector dominated M&A transaction activity in the first half of the year. Key transactions included DIG Corporation's divestment of sub-zones within the Đại Phước Eco-Tourism Urban Area and joint venture structures for large-scale developments, such as the Eco Smart City project in HCM City.

Hospitality also saw significant activity, with SC Capital Partners acquiring Serenity Holding Company, Ltd, operator of Fusion Hotel Group in Việt Nam. Looking ahead, data centre projects are gaining interest, as investors assess infrastructure conditions for market entry, signalling potential transaction activity in the latter half of the year.

Looking ahead, large-scale data centre projects are receiving increasing attention in Việt Nam as regional investors actively seek land banks, assess infrastructure conditions, and position for market entry. This represents an emerging segment that could see significant transaction activity in the second half of the year.

“The biggest hurdle facing the market today is not a lack of liquidity or investor interest, but rather the valuation gap between buyers and sellers. While many asset owners expect pricing to reflect the market’s recovery momentum, investors remain cautious amid ongoing global economic uncertainty. We expect this gap to gradually narrow as market confidence improves and more transactions successfully close,” said Bách.

In addition, the remaining land use term is also one of the aspects that investors are concerned about, as some assets are gradually approaching the expiration of their lease term in the upcoming period. The handling of assets after expiration and the government's direction are among the top concerns for potential investors wishing to enter the Vietnamese market.

JLL forecast that foreign investors are expected to continue showing their keen interest and strong commitment in the Vietnamese real estate market. Both incumbent and incoming foreign investors are actively hunting for "clean" and "clear" projects that can meet their required returns and conditions.

M&A activities are expected to maintain stable levels in the second half of 2026, with continued focus on quality assets across residential, hospitality, data centre, and selective commercial segments, according to JLL. 

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