A Vibrant Snapshot of Vietnam’s Real Estate Landscape in 2025

By Knight Frank analysts
Thu, July 10, 2025 | 2:37 pm GMT+7

Vietnam’s bustling cities, Ho Chi Minh City (HCMC) and Hanoi, are witnessing an exciting resurgence in their real estate markets following the Lunar New Year holiday, known as Tet. Significant growth is observed across office leasing, apartment sales, industrial land, and the hospitality sector. Let’s dive into the latest insights by Knight Frank analysts to understand the factors fueling this vibrant real estate landscape.

Office Market Resilience

The office markets in both HCMC and Hanoi are showcasing robust performances, reflecting a healthy demand for quality spaces. Major leasing transactions were completed during the quarter, with asking rents for Grade A offices in HCMC increasing to $60.8 per sqm per month—a rise of 2.7% quarter-on-quarter. Grade B offices followed suit, with rents reaching $33.4 per sqm per month, up by 0.2%. This growth can be attributed to the launch of the Marina Central Tower, marking its presence as the largest office building in HCMC.

New supply in HCMC has seen an upward trajectory, totaling 86,700 sqm and signifying a 4.9% increase quarterly. In contrast, Hanoi’s asking rents for Grade A offices hovered at $36 per sqm, reflecting minor fluctuations. The average office occupancy rates displayed a slight decline in HCMC to 86%, while Hanoi saw a modest increase to 84%.

Multinational corporations from IT, pharmaceuticals, and logistics are driving office space demand, with sizeable deals materializing across the board. Notably, HCMC continues to lag in new constructions, prompting a need for high-quality office spaces, while Hanoi benefits from multiple planned developments.

Apartment Market Dynamics

Both HCMC and Hanoi are seeing encouraging signs in their apartment markets after a typical Tet slowdown. In HCMC, the average primary asking price now stands at $3,729 per sqm, reflecting a 2% increase quarter-on-quarter. New supply surged with around 1,500 units released, a striking 140% rise compared to the previous quarter. Notably, a significant portion of this new supply is categorized as affordable housing.

In Hanoi, the average asking price climbed to $3,284 per sqm, marking a 6% increase. Notable developments, such as high-quality projects in the Nam Tu Liem and Ha Dong districts, spurred this rise. The influx of 7,100 new apartment units in Q2 indicates a 129% surge quarter-on-quarter, although year-on-year figures showcase a contraction.

Sales momentum has gained traction in both cities, with 2,300 units sold in HCMC and 7,400 units in Hanoi during this period. The demand for high-quality products in township developments remains robust, setting a promising outlook for the second half of 2025.

Industrial Land Supply and Demand Surge

Vietnam’s industrial land market has experienced substantial momentum in the first half of 2025. Average asking prices for industrial land in Tier-1 Southern locations have risen to $169.4 per sqm, reflecting a 4.4% increase year-on-year. Limited supply has allowed existing industrial parks to push higher asking prices, as demonstrated by the launch of the Prodezi Eco Long An Phase 1 Industrial Park.

In Northern Tier-1 cities, asking prices have also seen a rise, reaching $136 per sqm. The demand for industrial land has specifically been driven by manufacturing expansion, particularly in electronics and logistics.

By the end of 2025, around 500 hectares of new supply is anticipated in Southern regions, while Northern provinces expect nearly 300 hectares. Given the ongoing demand and limited availability, property prices in the industrial sector are projected to maintain a steady upward trend.

Hospitality Sector Revival

The hospitality industry in Vietnam is restructuring itself with the introduction of relaxed visa rules and direct international flights. Average daily rates (ADR) for hotels in HCMC increased to $152 per room per night, supported by a surge in tourist arrivals. The Indigo Saigon The City by IHG, offering rates above $200, contributed notably to this growth.

In Hanoi, the ADR for 5-star hotels reached $135, buoyed by increased tourism. By the end of 2025, Hanoi expects about 500 new rooms introduced to the 5-star market, while HCMC will not see new entries until 2027, likely maintaining its higher ADR due to limited competition.

The invigorated tourism activity reflects a positive trajectory with international arrivals surging to 22.1 million in HCMC and 15.5 million in Hanoi during the peak season of H1 2025.

In summary, Vietnam’s real estate landscape showcases a resilient trajectory across multiple sectors, driven by strategic developments and increasing demand. The vibrant market is poised for further enhancement, making it an essential player in the Asian real estate arena.