Thematic investing – as opposed to traditional geographic or sector approaches – has risen from 4% in 2008 to nearly 13% in 2023. (Int)
Establishing a New Strategy After the Market Adjustment Phase
Savills’ Impact 2025 report indicates that the sustainable growth cycle, which once made real estate a favored investment channel, has slowed. High-interest rates have made bond yields more competitive, while expectations for capital appreciation in real estate have narrowed. In this trend, investors need to shift to a proactive strategy, focusing on core cash flow, asset management capabilities, and long-term orientation.
From 2016 to 2024, Vietnam’s real estate market witnessed robust growth in residential, office, and retail segments, especially in Hanoi and Ho Chi Minh City, due to rapid urbanization and increasing demand for modern living spaces. However, disruptions caused by the pandemic, tight credit policies, and prolonged legal barriers have led the market into a deep correction phase, with many projects stalled and a more cautious investment sentiment.
In response to this situation, structural reforms have been accelerated. The implementation of the Land Law, Housing Law, and amended Law on Real Estate Business since August 2024 has helped remove bottlenecks in approval procedures and enhanced transparency, a key factor in attracting long-term capital. Simultaneously, public investment in infrastructure has been accelerated nationwide, from the Long Thanh airport, North-South expressway to ring roads in Hanoi and Ho Chi Minh City, facilitating regional connectivity and triggering new waves of development in satellite cities.
Mr. Neil MacGregor, Senior Managing Director of Savills Vietnam, commented, “Investor sentiment will improve significantly once planning approvals are granted and projects can be launched into the market. Improved access to land through auctions and streamlined site clearance procedures will boost real estate investment in Vietnam.”
He also mentioned that peripheral markets would benefit significantly from improved infrastructure, especially areas offering affordable housing. Meanwhile, in central locations, the branded residences model is expected to gain traction, similar to Bangkok or the Middle East, attracting domestic and international ultra-high-net-worth individuals, especially as Hanoi and Ho Chi Minh City solidify their international status.
Q1/2025 witnessed notable recovery signals: Hanoi absorbed nearly 8,000 apartments, a 49% increase year-on-year; Ho Chi Minh City’s Grade A offices achieved an 88% occupancy rate, and the retail segment maintained its dominance with a 94% occupancy rate. These factors indicate that the market is not only entering a new growth cycle but also reshaping its entire development structure, a phase that is both promising and a test for long-term investors.
Investment Orientation: Thematic and Sustainable, Based on Actual Needs
The Impact 2025 report also highlights two prominent strategic directions reshaping global real estate. The first is thematic investing, moving away from traditional geographic or sector approaches, with a focus on data centers, healthcare, education, senior living, and logistics. These sectors are highly counter-cyclical and aligned with long-term social trends. The allocation to these segments has risen from under 4% in 2008 to nearly 13% in 2023.
In Vietnam, this trend is gradually taking shape. “The middle and upper classes in Vietnam are growing rapidly, driving investment demand in healthcare and education, while also supporting the development of retail and hospitality,” said Neil. He also mentioned that logistics real estate in Vietnam still has significant potential, especially with the parallel development of infrastructure and e-commerce.
The second strategic direction is prioritizing sustainable cash flow by improving tenant experience. Investors must focus on asset quality, efficient operations, and alignment with actual needs. Vietnam is witnessing a wave of Grade A office building construction, especially in Hanoi, to meet the “shift to quality” trend among businesses.
“Today’s tenants seek not just workspace but also elements that enhance their employees’ quality of life. Air quality, natural light, gyms, and spa facilities are increasingly becoming criteria for selecting a new building. In the buildings managed by Savills, we have implemented software that enables tenants to interact and participate in events, sports clubs, and other community activities,” he added.
The Surprising Forecast for the Land Market in the Second Half of 2025
Mr. Duong Van Sy, CEO of An Vuong Land, predicts that land prices are unlikely to plummet. Provinces with robust internal strengths and well-connected transportation systems will continue to maintain a certain level of “heat,” but the rate of price increases will generally slow down compared to previous periods.
The Billion Dollar Resort: Unveiling the Mastermind Investors Behind the Vân Đồn Project
The People’s Committee of Quang Ninh Province has just approved a colossal investment project for an integrated tourism, entertainment, and premium resort complex, along with a golf course and residential area in Monbay Van Don. This ambitious venture boasts a staggering total investment of over VND 24,883 billion.
“T-Corp’s Strategic Retreat: A Bold Move with a New Name and Real Estate Venture”
The Asset Management Group Tri Viet Joint Stock Company (HNX: TVC) held its 2025 Annual General Meeting of Shareholders on the morning of June 14, approving key agenda items. These included a conservative business plan, the distribution of additional dividends for 2021, a share buyback program to reduce charter capital, changes to the board of directors, and a proposal to change the company name to T-Corp.
The Pathway: A Dual-Asset Opportunity in the Heart of Sam Son’s Tourism Hub
The beach buzzes with a crowd of sun-seekers, the seaside square heaves with excited onlookers, and the skyline illuminates with a dazzling display of fireworks. From dawn till dusk, a vibrant series of shows and street festivals keep the energy alive.
The Green City Rises: Thanh Hoa Approves Master Plan for 2,000-Hectare Urban Development Near Tho Xuan Airport
The People’s Committee of Thanh Hoa province has approved the detailed planning proposal for the Lam Son – Sao Vang urban area in Tho Xuan district, as outlined in Decision No. 1703/QD-UBND. This decision paves the way for the development of a vibrant and well-planned urban hub, known as Subdivision No. 02, which will undoubtedly enhance the region’s economic and social landscape.
