Written by Dustin Trung Nguyen, Head of IQI Vietnam
VIETNAM REAL ESTATE MARKET OVERVIEW
Residential Sector
Housing Supply in Ho Chi Minh City Remains Limited
The residential property supply in Ho Chi Minh City (HCMC) remained constrained in the early months of 2025, with only 350 condominium units and 58 ready-built townhouses and villas launched, according to CBRE Vietnam.
All new launches came from subsequent phases of existing projects, although there have been notable improvements in resolving legal bottlenecks. Duong Thuy Dung, Executive Director of CBRE Vietnam, noted that certain projects—such as a condominium development in District 7—may soon be able to sign sales contracts. Meanwhile, long-delayed housing developments in Thu Duc City, handed over between 2016 and 2019, are expected to finally issue ownership certificates, helping to restore buyer confidence.
Data from the municipal People’s Committee indicates that approximately 38,000 apartments are expected to receive title deeds in 2025. Since late 2024, new sales activity has resumed in Thu Duc after a two-year halt due to regulatory challenges.
Integrated urban township models on HCMC’s outskirts have gained traction, supported by accelerated investment in key infrastructure projects. Experts note that the western region of the city—home to several major developers—is witnessing strong preparations for new launches and robust reservation demand. One urban project near Tan Son Nhat Airport in Tan Phu District recorded over 1,000 reservations within just ten days of its launch.
In neighboring Long An Province, investor interest is growing. A green urban township in Ben Luc, near Binh Chanh District, is currently accepting reservations, while a nearly 200-hectare urban area in Duc Hoa has recently broken ground and is expected to launch later this year.
The residential market in western HCMC is projected to become increasingly vibrant in the coming quarters. In total, more than 8,600 condominium units and fewer than 1,000 ready built townhouses and villas are expected to launch throughout 2025, predominantly in the suburban zones.
In the office segment, Thanh Pham, Associate Director of Research & Consulting Services at CBRE Vietnam, reported strong absorption of newly completed Grade A buildings, with over 4,000 square meters leased in Q1 2025.
Commercial Sector
HCMC Retail Space Fully Leased Despite High Prices
Retail occupancy in Ho Chi Minh City remains near 100%, even as rental rates reach record highs and supply remains stagnant. As of November, most malls in District 1—such as Saigon Centre, Parkson Le Thanh Ton, Vincom, and Diamond Plaza—are nearly fully leased, with only limited availability on basement and upper levels.
A leading F&B brand seeking to expand on Dong Khoi Street, one of the city’s most expensive retail corridors, has faced delays due to space shortages. Similarly, a coffee chain has had to revise its business strategy after being unable to secure appropriate space in central locations.
“It is extremely difficult to find spacious retail areas in prime malls,” the company stated. “Most are fully occupied.”
Property consultancy Avison Young Vietnam confirmed there was no new retail supply in District 1 in Q3, with existing malls at full capacity. Notably, 75% of the city’s 1.5 million square meters of retail space is located in suburban areas.
The shortage of prime retail space, combined with strong demand from luxury brands, has pushed rents upward. District 1 retail rents stood at US$275–300 per square meter per month in Q3, according to Avison Young.
David Jackson, CEO of Avison Young Vietnam, noted that high-end brands prefer shopping malls in central locations, making competition intense. Luxury labels like Longchamp, Lush, and Popmart have chosen District 1 for flagship stores, despite attractive offers from suburban developments.
Office and Industrial Market Trends
CBRE Vietnam’s 2024 Asia-Pacific Office Occupier Survey revealed that competitive rental rates and high-quality service are key factors influencing tenant relocations. In Q1 2025, relocations accounted for 50% of tracked major lease transactions, with the information technology sector leading both in volume (25%) and leased area (31%).
Meanwhile, the industrial land market in southern Vietnam maintained a stable 89% occupancy rate. The ready-built warehouse and factory segments saw continued growth, with Q1 occupancy rates reaching 72% and 89%, up 14 and 3 percentage points year-on-year, respectively.
