VIETNAM REAL ESTATE MARKET

Vietnam real estate market is projected to grow at robust CAGR during the forecast period driven by supportive government policies, a rising population, and expanding infrastructure projects in the country.

Major Vietnam Real Estate Market Drivers and Emerging Trends

The real estate market in Vietnam is expanding as the government implements new regulations designed to foster growth in the sector. The government has implemented various policies aimed at developing social housing which provides support for low-income groups in rural or urban areas. The government’s primary initiatives involve the housing law and various official measures aimed at supporting and stimulating the development of social housing.

These new regulations are set to offer improved assistance to the real estate industry while also professionalizing brokerage operations and transactions in the market. The government expects to see more robust and accountable growth in the market combined with a substantial influx of capital investment due to clearer and rigorous regulations that will create a conducive environment for project development.

Stricter rules will be introduced to regulate the classifications and disclosures of business contracts in the real estate sector. A significant provision concerning the dissemination of information regarding property products coming into the market is expected to improve transparency and safety in the transactions.

The government has also put an intervention plan in place to respond to a potential surge in property prices exceeding twenty percent in a three-month period. This careful strategy reflects the country’s intention to stabilize the market as it emerges from the downturn caused by the covid pandemic.

To address the continuous rise in real estate prices, the government has launched the Decree 96 aimed at stabilizing the market and maintaining economic stability. The decree specifies actions to be implemented in reaction to concerning rises in the property market price index. An important provision mandates that governmental bodies must recommend regulatory actions if there is an over twenty percent increase in property prices for three months in a row. In such situations, the Ministry of Construction must propose solutions for market regulation based on the government’s directives or the most recent market evaluations.

 Growing population and rapid urbanization especially in major cities are also driving the need for new residential units thereby bolstering the Vietnam real estate market size expansion. The growing internet penetration and the rising middle-class youth income in Vietnam have boosted the demand and proportion of property sales through online platforms. This rapid rise in personal wealth has enabled more people to afford property which contributes to the growth of Vietnam real estate market 2024 and beyond.

With significant potential in various sectors including real estate and construction, Vietnam is gaining prominence in Southeast Asia and is projected to maintain its remarkable growth in the years ahead. Vietnam real estate market outlook is optimistic primarily fueled by consistent economic growth along with the ongoing construction of large-scale projects in major urban centers like Hanoi and Ho Chi Minh.

Infrastructure development will play a crucial role in future residential expansion in these cities as projects like ring roads link central hubs to surrounding regions where land is more accessible and priced competitively. This not only motivates developers to create new properties but also boosts demand since property offerings in the regions around these cities tend to be more affordable.

Vietnam real estate market report also identifies several investment risks in this sector including fluctuations in the market and potential shifts in government regulations. Mitigating these risks requires performing diligent research, analyzing market conditions, and developing a clear grasp of the investment environment. Investors also need to recognize currency risks and the potential volatility of the Vietnamese Dong.

Strategies for mitigating risks might involve diversifying portfolios across various property types along with ensuring that their investment structures align with local regulations and market standards. A solid risk management strategy and the ability to adjust to evolving market dynamics are vital for securing investments while attaining continued growth.

By property type the market is categorized into residential, hotel, and other segments. The residential sector is anticipated to dominate the market as Vietnam is projected to see significant need for housing units in major cities and industrial areas in the next three or four years. The rising demand will continue to support the expansion of the residential construction sector in the short and medium term.

As urbanization continues to generate demand for housing units in large urban areas, the residential market has shifted its focus from premium properties to medium options. The country is also becoming known as a leading market for luxury property which is bolstered by economic development and laws that make it more accessible for foreigners to buy property.

Top Market Players

Several notable players within the market include FLC Group, Novaland Group, Dat Xanh, among other companies.

Segments covered in the Report:

The Vietnam Real Estate Market has been segmented on the basis of Property Type. Based on the Property Type, the market is segmented into Residential Real Estate, Office Real Estate, Hotel Real Estate, Retail Real Estate and Others.

Report Coverage	Details
Market Revenues (2023)	USD Million
Market Base Year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Property Type
Regional Coverage	Vietnam
Companies Profiled	FLC Group, Novaland Group, Dat Xanh, among others; a total of 3 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Vietnam Real Estate Market by Property Type

• • Residential Real Estate
  • Office Real Estate
  • Hotel Real Estate
  • Retail Real Estate
  • Others

Vietnam Real Estate Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • FLC Group
  • Novaland Group
  • Dat Xanh