Revitalization of Vietnam’s Southern Real Estate Market: Unpacking the Surge in Mergers and Acquisitions
Introduction to a Dynamic Shift
After nearly three years of stagnation, Vietnam’s southern real estate market is experiencing a remarkable transformation propelled by a surge in mergers and acquisitions (M&A). Cities like Ho Chi Minh City and regions such as Dong Nai are witnessing clandestine yet significant transfers of major projects—some valued in trillions of dong. This uptick in M&A activity signals a new era of market consolidation and investment reconfiguration.
High-Value Transfers Quietly Underway
The recent revitalization of the southern property market has led to a notable increase in M&A activities. Domestic developers are restructuring portfolios and offloading projects to alleviate financial burdens, while well-capitalized investors are capitalizing on opportunities to acquire land with clear title and favorable legal status.
A standout transaction involved DIC Group’s approval to transfer four subdivisions of the sizeable 464.6-hectare Dai Phuoc eco-tourism urban area on Ong Con Islet in Dong Nai Province. The sales, totaling 45 hectares, were acquired by domestic firms TNT Phu Hoa JSC and EverLand An Giang JSC. This deal is projected to yield approximately VND 3 trillion (around USD 123 million) for DIC Group, indicating the financial muscle behind ongoing real estate endeavors.
Noteworthy Developments
In another significant deal, LDG Group decided to transfer its LDG Sky project—a residential complex featuring five towers and nearly 1,700 apartments located in Binh Nguyen New Urban Area, Thu Duc City. While particulars on the buyer and sale price remain undisclosed, LDG has stated that the transaction is essential for maintaining operational liquidity.
Late in 2025, Ngan Hiep Real Estate, part of Novaland, made headlines by becoming a key shareholder in Seaprodex (SEA) with the swift acquisition of over 30 million SEA shares. Valued at more than VND 1 trillion (about USD 41 million), this strategic move grants the buyer access to a coveted 1,600m² “golden land” plot on Dong Khoi Street in Ho Chi Minh City. The site is zoned for ambitious development, including a 20-story complex with diverse commercial uses.
Furthermore, the Saigon Broadway project, initially owned by Novaland through its subsidiary, underwent a gradual transfer of shares leading up to August 2025. Sun City, as the project’s new registered owner, saw its ownership structure evolve significantly when GWC Real Estate, linked to Son Kim Land, acquired a decisive 25% stake. This maneuver effectively positioned Son Kim Land as the dominant force behind the Saigon Broadway project.
Declining Foreign Investment in Favor of Domestic Players
Interestingly, the major southern M&A deal of 2025 featured CapitaLand Tower, a subsidiary of Singapore’s CapitaLand, in a substantial acquisition of over 150 hectares within the Vinhomes Green Paradise project in Can Gio. This deal, with an estimated worth of VND 17.5 trillion (around USD 717 million), underscores the stakes at play in the evolving market.
Market analysis from real estate research firm Avison Young reveals an overall decline in M&A activity across various sectors in 2025 compared to the booming years of 2021–2022. Notably, even though real estate remains the most active M&A sector, the volume and average deal values have decreased, reflecting changing market sentiments.
The report highlights a most intriguing trend: local firms have outpaced foreign entities as the primary buyers in high-value real estate transactions, often exceeding USD 100 million. David Jackson, CEO of Avison Young, noted that the market environment is currently more favorable to buyers who are exercising caution in legal due diligence and risk evaluation.
Insights into Market Trends
Avison Young’s findings indicate that the majority of announced M&A transactions are concentrated in Ho Chi Minh City, with 15 deals having taken place in the urban core, along with one in Binh Duong. Satellite cities around Hanoi have also attracted attention with eleven documented deals, while central Vietnam saw noticeably less activity.
This trend illustrates a gradual shift of capital flows towards satellite cities, which are increasingly seen as hubs for growth. Factors such as burgeoning housing demand, decentralization trends, and rapid infrastructural development are driving this investment migration.
As Vietnam’s southern real estate market enters this new phase of M&A activity, the landscape is clearly changing. The dynamics between domestic and foreign investors, alongside the strategic repositioning of assets, suggest an exciting yet challenging future for the region’s property market.