New M&A wave to sweep into Vietnam's property market: experts

By Lien Thuong, Minh Hue
Sat, March 15, 2025 | 8:13 am GMT+7

Vietnam's real estate market is expected to heat up in 2025, driven by a strong influx of foreign direct investment (FDI) and a surge in mergers and acquisitions (M&A) deals, according to experts.

 A real estate project developed by Masterise Homes. Photo by The Investor/Minh Thong.

A real estate project developed by Masterise Homes. Photo by The Investor/Minh Thong.

Evaluating the prospects for Vietnam’s real estate market in 2025, experts from JLL Vietnam believed that the sector is poised for significant growth, thanks to the government’s robust investment in infrastructure.

This year, the government has allocated an amount equivalent to 8% of GDP for infrastructure development, which will be a key driver of GDP growth.

Trang Le, CEO of JLL Vietnam, highlighted several factors that contribute to an optimistic outlook for the real estate market in 2025, including interest rates.

This year, the State Bank of Vietnam plans to maintain interest rates that were lowered last year to foster economic growth, while increasing credit growth to over 16%.

The acceleration of infrastructure development, with VND900 trillion ($35.27 billion) allocated for public investment, is another key factor fueling real estate growth this year.

Streamlining administrative processes and merging localities in the near future will further facilitate legal procedures, fostering long-term growth. These significant reforms not only support the real estate sector but also contribute to the sustainable development of the private economy, Trang Le noted.

However, she pointed out that the biggest challenge facing Vietnam’s real estate market is the shortage of supply across all segments, particularly in affordable housing, due to skyrocketing prices in recent years.

The market, with a population exceeding 100 million, has also largely focused on traditional segments like residential, office, retail, and industrial real estate, leaving many other potentially lucrative segments untapped.

"These challenges, combined with global economic instability, will drive Vietnam’s real estate market into a new development cycle. In the coming years, the market is expected to shift towards secondary real estate, data centers, and housing for the elderly.

"This will lead to a more sophisticated, professional, and sustainable market - an evolution that has never been so clearly evident in Vietnam. Furthermore, the true value of real estate will become the foremost criterion in this new phase, aligning the market more closely with real demand, particularly in the housing segment," she predicted.

Trang Le also emphasized that the "key" to unlocking this new phase of development lies in the optimistic signals from FDI, as foreign investors recognize the government’s commitment to long-term growth.

"FDI capital is poised to flow strongly into Vietnam’s real estate market, with optimistic forecasts that the market will gain momentum following decisive moves by the government. A wave of M&A activity is expected soon, as many of JLL Vietnam’s foreign partners are closely studying projects and companies within this 100-million-strong market.

"Additionally, the global economic impact has made Vietnam’s office and industrial real estate segments increasingly attractive, potentially boosting the commercial property sector," she added.

Similarly, a report titled "Tariffs and the Impact on Asia-Pacific," published by Cushman & Wakefield (C&W) on Thursday, showed that Asia Pacific commercial real estate (CRE) has performed well under various political landscapes, so having a long-term view will be a useful strategy in making real estate decisions.

Property markets across Asia Pacific were gaining momentum going into 2025. The region was coming off of two challenging years in the face of higher interest rates. Towards the end of 2024, the regional economy remained resilient, central banks were largely pivoting, CRE values were stabilizing, and optimism was returning to the property sector.

"Asia Pacific has momentum which will help provide a buffer and likely keep property performing well in 2025," the report said.

"The recovery in the capital markets which started in 2024 will continue in 2025; albeit, it will now likely be a bit choppier. The uncertainty around tariffs and inflation and the path of central bank policy adds natural volatility to the bond markets and will make it more difficult for investors to feel confident in where conditions are headed in the near-term.

"Less confidence translates to less investor and business conviction, implying that investor behavior will remain cautious. However, the interest rate trajectory is still downwards and the pricing outlook is stable, which should provide baseline support for commercial real estate investment,” according to the report.

Investors and occupiers should remain focused on longer-term trends and themes. From an investor/lender perspective, it is important to keep in mind that CRE is a long-term investment, it said.

There are lags in the impacts of policy changes, and many leases and loans are going to outlive these policy changes. From an occupier perspective, look for opportunities to capitalize on the uncertainty, as it may create space options and rental discounts that wouldn’t otherwise be there, the report added.

Comments (0)
  • Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7

'Precious space' in Vietnam's monetary policy

'Precious space' in Vietnam's monetary policy

The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.

Economy - Mon, September 15, 2025 | 10:15 am GMT+7

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).

Banking - Mon, September 15, 2025 | 8:04 am GMT+7

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.

Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7