Vietnam’s Property Market: A New Era of Growth and Inclusivity

Vietnam’s property market is at a crucial juncture, emerging from a two-year slowdown to embrace a new wave of growth. This resurgence is fueled by a combination of surging foreign investment, evolving government policies, and significant infrastructure initiatives. However, as industry leaders emphasize, the challenge lies in balancing rapid expansion with sustainability and inclusivity to ensure long-term resilience.

Surge in Foreign Investment

Recent reports indicate that foreign investment in Vietnam’s property sector has doubled, reflecting a growing interest from international stakeholders in residential, industrial, and hospitality opportunities. This renewed enthusiasm aligns with transformative policy changes, such as provincial mergers, which are unlocking new avenues for development and urban expansion into previously untapped regions.

In major urban centers like Ho Chi Minh City, the demand-supply imbalance remains a pressing issue. The city has recently approved 17 new housing projects for foreign ownership, aiming to address pent-up demand while attracting overseas buyers. Investment interest is also spilling over into surrounding provinces like Long An, Dong Nai, and Binh Duong, where industrial parks and residential zones are rapidly taking shape.

Infrastructure: The Backbone of Sustainable Growth

Experts agree that infrastructure is a critical factor in ensuring sustainable growth in Vietnam’s property market. Mauro Gasparotti, Senior Director at Savills Hotels, highlights that while the market is experiencing a strong resurgence, addressing fundamental structural challenges is essential. Proper infrastructure planning is paramount for the success of new developments, particularly in areas surrounding major cities.

Gasparotti emphasizes that the demand for midscale and upper-midscale housing in Ho Chi Minh City continues to outpace supply, prompting developers to look towards nearby provinces. However, for these projects to thrive, robust transportation links and social infrastructure are necessary to connect emerging zones with urban centers. Without such connectivity, development risks becoming isolated, ultimately failing to benefit residents in the long run.

Policy Clarity and Inclusivity

Freek Jansen, Branch Manager for Southeast Asia at Dewan Architects and Engineers, underscores the need for a comprehensive policy framework that integrates inclusivity, innovation, and investor confidence. He points out that while Vietnam’s real estate sector is witnessing robust growth, a multi-pronged strategy is essential for maintaining momentum while ensuring sustainable and inclusive development.

Key pillars of this strategy include urban planning, transparency, and equitable housing policies. Jansen advocates for zoning policies that mandate affordable housing in new developments, particularly in expanding urban areas. Promoting green building standards and climate-resilient designs will also support long-term sustainability.

Transparency is equally vital. Clear land-use rights for foreigners, digitized land registries, and streamlined approval processes can significantly reduce regulatory risks. Encouraging the development of Real Estate Investment Trusts (REITs) and green bonds can diversify funding sources and make capital markets more accessible.

To foster inclusivity, Jansen calls for government incentives for affordable and social housing through subsidies, soft loans, and public-private partnerships, alongside investments in secondary cities and newly merged provinces. Maintaining macroeconomic stability and consistent policy direction will further strengthen Vietnam’s position as a sustainable growth engine.

Broader Sectoral Drivers

Logistics has emerged as another critical enabler of Vietnam’s property growth. Industry leaders argue that "green logistics" is essential for local firms to thrive, linking supply chain efficiency with sustainable development goals. Reports indicate that momentum is sustained across all real estate segments, from residential and industrial to hospitality and retail.

The industrial sector, in particular, has benefited from foreign investment flows and supply chain diversification. New entrants and established players are expanding into logistics parks and industrial hubs that align with both economic and environmental goals.

Celebrating Vietnam’s Developers

As Vietnam continues to attract international attention for its investment potential, the achievements of developers shaping the sector were recognized at the 10th edition of the PropertyGuru Vietnam Property Awards. This program highlights companies that exemplify innovation, resilience, and responsibility amid a rapidly evolving market.

Among the year’s winners, Gamuda Land was named Best Developer for its impactful residential and mixed-use projects. Core5 Vietnam received the award for Best Industrial Developer, reflecting the sector’s pivotal role in Vietnam’s growth trajectory. The focus on lifestyle and community was also celebrated, with Alphanam Investment Joint Stock Company winning Best Lifestyle Developer.

Sustainability was a central theme, with CapitaLand Development (Vietnam) named Best Sustainable Developer and also receiving the Social Impact Award. These winners reflect the values highlighted by judges: strong infrastructure, inclusivity, transparency, and sustainability.

Looking Forward

Vietnam’s real estate market stands at an inflection point. While surging investment and supportive government policies are driving expansion, challenges remain in infrastructure, transparency, and balanced growth. Insights from industry experts and the recognition of developers at the PropertyGuru Vietnam Property Awards highlight a promising direction forward—one that is sustainable, inclusive, and aligned with the long-term needs of residents, investors, and the environment.

With a focus on resilience and innovation, Vietnam has the opportunity to position itself as a regional leader in sustainable real estate. The momentum is clear; the challenge lies in ensuring it endures.

Call to Action

Do you know any award-worthy residential, commercial, or industrial projects in Vietnam? Nominate them for the 11th annual PropertyGuru Vietnam Property Awards by August 22, 2025. For more information, visit AsiaPropertyAwards.com/Award/Vietnam.

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, authored this article. For more information, email: [email protected].