Vietnam Real Estate & Mortgage Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 47.59 Billion |
| Market Size (2029) | USD 87.46 Billion |
| CAGR (2024 - 2029) | 12.94 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Real Estate & Mortgage Market Analysis
The Vietnam Real Estate & Mortgage Market size is estimated at USD 47.59 billion in 2024, and is expected to reach USD 87.46 billion by 2029, growing at a CAGR of 12.94% during the forecast period (2024-2029).
- In 2024, Vietnam's real estate and mortgage market is undergoing a significant transformation, spurred by regulatory reforms and evolving consumer preferences. Recent approvals of key legislations, such as the Real Estate Business Law, Housing Law, and Land Law, are poised to boost transparency and attract investments. Set to be implemented in August 2024, these laws aim to cultivate a more investor-friendly environment, bolstering both domestic and foreign confidence. Consequently, industry insiders are predicting a strong resurgence in the real estate sector, especially in the latter half of 2024.
- Market performance data from Batdongsan.com.vn reveals a notable uptick in property searches in major cities. In Hanoi, land plot inquiries jumped 118% year-on-year, and apartment searches climbed 46% in the first half of 2024. Ho Chi Minh City mirrored this trend with a 45% rise in land searches, underscoring a burgeoning interest in property investments. This surge in inquiries indicates a growing optimism among buyers regarding the market's recovery.
- Yet, amidst this buoyant interest, the residential market grapples with dwindling transaction volumes. The Ministry of Construction noted a 30% drop in total residential transactions in Q2 2024, attributed to soaring prices and a wary buyer sentiment. In contrast, land transactions witnessed a robust 28% uptick during the same timeframe. This divergence underscores a market shift, with buyers pivoting from residential properties to land investments amid economic uncertainties.
- The mortgage landscape is also adapting to these market shifts. The State Bank of Vietnam highlighted a mere 4.45% growth in housing loan credits in the first half of 2024, a deceleration from previous years. Escalating housing prices and inflation have tightened buyers' budgets, prompting many to adopt a cautious stance on mortgage commitments. Yet, developers are countering this trend with attractive mortgage rates and extended payment plans to invigorate demand.
- Given the ongoing regulatory changes and a potential uplift in buyer sentiment as economic conditions stabilize, various market segments may witness growth. The government's dedication to infrastructure and social housing projects further bolsters this outlook. As these elements align, stakeholders are urged to stay alert, adapt to the evolving landscape, and seize emerging opportunities in Vietnam's real estate arena.
Vietnam Real Estate & Mortgage Market Trends
Ho Chi Minh City Fuels Vietnam's Market
In 2024, Ho Chi Minh City (HCMC) is witnessing a real estate boom, spurred by new regulations and evolving consumer tastes. Revised laws, such as the Real Estate Business Law and Housing Law, aim to boost market transparency and draw in more investors. These changes are set to lighten legal burdens on property deals and spur fresh developments. Consequently, HCMC is emerging as a pivotal player in Vietnam's real estate arena.
HCMC's residential market is seeing a surge in demand for upscale apartments. In Q2 2024, the city logged 167 transactions in the luxury segment, largely fueled by projects like Zeit River Thu Thiem. Furthermore, Eaton Park's soft launch of nearly 900 units saw a remarkable 90% booking rate as reported by Q1/2024 Market Brief by Industry Association. This strong demand not only signals a rebound in consumer confidence but also highlights a trend towards premium living as the economy improves.
While high-end properties thrive, the broader residential market grapples with challenges due to a constrained supply. Recent data reveals a 35% quarter-on-quarter drop in HCMC's primary apartment stock, now at 4,922 units, as numerous projects paused sales over legal hitches s reported by Q1/2024 Market Brief by Industry Association. This limited availability has intensified competition for units, pushing prices upward. High-end apartments now average around USD 4,998 per square meter - a slight dip, yet buoyed by the tight inventory.
In tandem with these trends, HCMC's mortgage landscape is evolving. Banks are rolling out attractive lending terms to boost demand. The State Bank of Vietnam has noted a rise in preferential mortgage rates to aid homebuyers. Developers, too, are sweetening the deal with interest-free payment plans stretched over 15 years, easing the financial burden on buyers. Such moves are pivotal in making homes more affordable and spurring transactions in a bustling market.
Looking forward, HCMC's real estate scene stands to gain from ongoing infrastructure initiatives poised to bolster connectivity. As reported by Industry Association, in the first quarter of 2024, Vietnam's retail sector thrived, with rising rental prices and occupancy rates. As these infrastructure projects materialize, they promise to amplify demand for both residential and commercial spaces, cementing HCMC's status as Vietnam's premier investment hub well into 2024 and beyond.
In conclusion, Ho Chi Minh City's real estate and mortgage markets are undergoing transformative growth, driven by regulatory reforms, evolving consumer preferences, and infrastructure advancements. While challenges such as limited supply persist, the city's strategic initiatives and robust demand position it as a key driver of Vietnam's real estate sector in the years to come.
Office and Residential Growth Fueling the Market
In Ho Chi Minh City (HCMC), both local and foreign firms are intensifying their competition for Grade A and Grade B office spaces. Industry reports indicate that the city is poised to introduce approximately 96,000 square meters of new office space by the end of 2024. This expanding office landscape plays a crucial role in accommodating the surge of startups and multinational corporations establishing their presence in Vietnam. In a bid to meet the demand for contemporary and flexible workspaces, landlords are not only offering tenant-friendly lease agreements but also highlighting sustainable features in their buildings.
In Hanoi, the first half of 2024 witnessed a staggering 46% year-on-year surge in apartment searches. At the same time, the interest in houses, townhouses, and villas saw increases of 33%, 27%, and 9%, respectively. Ho Chi Minh City experienced a similar trend, with notable upticks across various property types, albeit with less intensity than Hanoi. Specifically, land searches in HCMC surged by 45%, followed closely by houses at 34%. Apartments, villas, and shophouses saw increases of 33%, 25%, and 22%, respectively, as reported by Hanoi Times.
In summary, Vietnam's real estate and mortgage market is witnessing a robust upswing, fueled by a burgeoning demand for both office spaces and residential properties. With heightened interest from domestic and international entities alike, the market is poised for further evolution, bolstered by contemporary developments and innovative leasing strategies. This momentum underscores Vietnam's burgeoning status as a prime destination for real estate investments.
Vietnam Real Estate & Mortgage Industry Overview
The Vietnamese real estate and mortgage market has many local and global players. The Vietnamese real estate market includes pure Vietnamese capital-based local companies and foreign investment funds from foreign companies and joint venture firms. Key players in the residential real estate market are Novaland Group, Dat Xanh Group, FLC Group, Hung Thinh Real Estate Business Investment Corporation, and Nam Long Investment Corporation.
In Vietnam, prop-tech startups and established real estate firms are harnessing technology to refine operations and bolster their competitive stance. Their goal is to elevate the experiences of home buying, selling, renting, and living. Centralized locations, especially the Hanoi CBD, are witnessing a surge in demand for quality office and retail spaces. This uptick in demand is buoyed by the robust performance of the country's manufacturing and tourism sectors, driving interest in retail, office, and industrial units.
Vietnam Real Estate & Mortgage Market Leaders
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Vingroup
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Dat Xanh Group
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FLC Group
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Toong
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Nam Long Investment
*Disclaimer: Major Players sorted in no particular order
Vietnam Real Estate & Mortgage Market News
- June 2024: Nam Long Group, one of the leading player in Vietnam's real estate sector, has divested a 25% stake in its sprawling 45-hectare Nam Long Dai Phuoc project. The buyer, Nishi Nippon Railroad, hails from Japan and the deal was valued at VND 662 billion (USD 26 million). Nam Long Group, which trades on the Ho Chi Minh Stock Exchange under the ticker NLG, has projected a post-tax profit of VND200 billion (USD 7.86 million).
- March 2024: A consortium of companies from Vietnam secured a 55% stake in SDI Investment and Trade Development Company, a subsidiary of Vingroup. The deal, valued at USD 982 million, is significant for the real estate and mortgage market, as SDI holds an indirect 41.5% stake in Vincom Retail, a prominent entity under the Vingroup umbrella.
Vietnam Real Estate & Mortgage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Overview
4.2 Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for the Real Estate Sector
4.4 Insights into Existing and Upcoming Projects
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in Real Estate
4.7 Insights into Capital Market Penetration and REIT Presence in Real Estate
4.8 Insights into Public-private Partnerships in Real Estate
4.9 Insights into Real Estate Tech and Startups Active in Real Estate (Broking, Social Media, Facility Management, Property Management)
4.10 Impact of Geopolitics and Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Urban Expansion
5.1.2 Streamlined Real Estate Lending Services
5.2 Market Restraints
5.2.1 Regulatory Hurdles
5.2.2 Land Acquisition Challenges
5.3 Market Oppurtunities
5.3.1 Affordable Housing
5.3.2 Commercial Real Estate
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 Industry Value Chain/Supply Chain Analysis
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Residential
6.1.2 Retail
6.1.3 Logistics/Industrial
6.1.4 Hospitality
6.1.5 Office
6.2 By Value
6.2.1 Premium
6.2.2 Luxury
6.2.3 Affordable
6.3 By Key Cities
6.3.1 Ho Chi Minh City
6.3.2 Hanoi
6.3.3 Quang Ninh
6.3.4 Da Nang
7. COMPETITIVE LANDSCAPE
7.1 Current Market Concentration
7.2 Company Profiles
7.2.1 Vingroup
7.2.2 Dat Xanh Group
7.2.3 FLC Group
7.2.4 Toong
7.2.5 Nam Long Investment
7.2.6 Sun Group
7.2.7 Colliers Internatio
7.2.8 Novaland Group
7.2.9 Hung Thinh Real Estate Business Investment Corporation
7.2.10 Phat Dat Corporation
7.2.11 Vinhomes*
- *List Not Exhaustive
8. FUTURE OUTLOOK AND OPPORTUNITIES
9. APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution, by Activity)
9.2 Economic Statistics - Transport and Storage Sector Contribution to Economy
9.3 External Trade Statistics - Exports and Imports by Product and by Country of Destination/Origin
Vietnam Real Estate & Mortgage Industry Segmentation
Real estate is private property in the form of buildings and land. Real estate can be used for residential, commercial, or industrial purposes. The real estate market refers to the selling of real estate services by entities (organizations, sole traders, and partnerships) that rent, lease, and allow the use of buildings and land.
The real estate and mortgage market in Vietnam is segmented by type (residential, retail, logistics/industrial, hospitality, and office), value (premium, luxury, and affordable), and key cities (Ho Chi Minh City, Hanoi, Quang Ninh, and Da Nang). The report offers the market sizes and forecasts in value (USD) for all the above segments.
| By Type | |
| Residential | |
| Retail | |
| Logistics/Industrial | |
| Hospitality | |
| Office |
| By Value | |
| Premium | |
| Luxury | |
| Affordable |
| By Key Cities | |
| Ho Chi Minh City | |
| Hanoi | |
| Quang Ninh | |
| Da Nang |
Vietnam Real Estate & Mortgage Market Research FAQs
How big is the Vietnam Real Estate & Mortgage Market?
The Vietnam Real Estate & Mortgage Market size is expected to reach USD 47.59 billion in 2024 and grow at a CAGR of 12.94% to reach USD 87.46 billion by 2029.
What is the current Vietnam Real Estate & Mortgage Market size?
In 2024, the Vietnam Real Estate & Mortgage Market size is expected to reach USD 47.59 billion.
Who are the key players in Vietnam Real Estate & Mortgage Market?
Vingroup, Dat Xanh Group, FLC Group, Toong and Nam Long Investment are the major companies operating in the Vietnam Real Estate & Mortgage Market.
What years does this Vietnam Real Estate & Mortgage Market cover, and what was the market size in 2023?
In 2023, the Vietnam Real Estate & Mortgage Market size was estimated at USD 41.43 billion. The report covers the Vietnam Real Estate & Mortgage Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Real Estate & Mortgage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Real Estate & Mortgage Industry Report
Statistics for the 2024 Vietnam Real Estate & Mortgage market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Vietnam Real Estate & Mortgage analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Vietnam Real Estate & Mortgage Market Report Snapshots
