Property market rebounds despite economic storms

Vietnam’s property market is showing strong signs of recovery despite wider economic challenges, with sector-wide net profit surging nearly 130% year-on-year in the second quarter of 2025, according to the research unit of SSI Securities.

Gains were driven by both housing and industrial park segments, signalling renewed investor confidence and growth potential, the broker added.

Leading the charge, Vinhomes reported profits of VND7.55 trillion ($288 million) in Q2, although this was down 30% year-on-year as major handovers and bulk sales are expected to materialize in the second half of the year.

Meanwhile, Hoang Huy Investment Service JSC (HHS) posted an extraordinary 3,075% increase in net profit in the quarter to more than VND3.5 trillion, following its acquisition of HHS Capital JSC and its position as parent company of CRV Real Estate Group.

Novaland and Vingroup also narrowed losses significantly compared to the previous year, contributing to an overall improved sector outlook.

On the industrial property front, Viglacera and Kinh Bac reported profit growth fuelled by robust foreign direct investment (FDI) inflows and better gross margins.

Despite this profit strength, sector revenue dipped by 3.6% in Q2. Larger developers such as Vinhomes, Nam Long, and Khang Dien saw declines on a high base, while smaller players including Hodeco and Dat Xanh recorded growth.

SSI Research highlighted that new supply is benefiting from legal reforms and the restart of previously stalled projects, forecasting over 40,000 new apartments in HCM City and Hanoi in 2025 - a rise of more than 10% from 2024.

Housing demand is expected to continue recovering, supported by low mortgage rates ranging between 5.5 and 7.9% for the first one to three years. Looking further ahead, urbanization projected to reach 50% by 2030 suggests significant long-term market potential.

In industrial parks, SSI cautioned that late 2025 through 2026 may experience slower contract signings, with memorandum of understanding (MoU) areas down 27% as tenants adopt a more cautious stance amid global uncertainties.

Rental rates are expected to remain stable at $145 per square metre in the north of the country and $178 per sqm in the south, with occupancy rates at 82% and 89%, respectively.

SSI projects net profit after tax for listed industrial park developers to grow 13% in 2025, although the long-term outlook for some larger players could weaken if new contract momentum fails to improve.