Market Size of Vietnam Luxury Residential Real Estate Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 3.64 Billion |
Market Size (2029) | USD 6.89 Billion |
CAGR (2024 - 2029) | 13.65 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Vietnam Luxury Residential Real Estate Market Analysis
The Vietnam Luxury Residential Real Estate Market size in terms of transaction value is expected to grow from USD 3.64 billion in 2024 to USD 6.89 billion by 2029, at a CAGR of 13.65% during the forecast period (2024-2029).
Real estate prices, particularly rents, dropped much during the COVID-19 pandemic, pushing developers and agents to the limit. With travel restrictions, agents were forced to focus primarily on local buyers due to the few remaining foreigners. Despite the downturn, deals were made in the market for those who worked with experienced and credible partners with boots on the ground. Particularly high demand has been seen for distressed luxury units that can fetch prices that are 20% lower than usual.
Vietnam is emerging as a thriving real estate market in Southeast Asia, with HCMC (Ho Chi Minh City) being among the locations where housing prices are increasing rapidly. Vietnam is among the 10 fastest-growing property markets in the upscale segment. Vietnam is also emerging as a country with rapid growth in affluence and demand for upscale properties. However, the spurt in prices and supply, which shows no signs of stopping, is causing concern about luxury apartments and branded residences developing too fast, causing the market to overheat.
The number of local and international customers in the luxury apartment market is rising in Vietnam. Vietnam has begun to be seen as the next luxury property market hotspot, with a booming economy coupled with laws that recently have made it easier for foreigners to buy. As a result, wealthy international investors have been drawn to the country. The burgeoning middle-and upper-classes and the inflow of foreign talents emerging in Vietnam have stimulated the demand for high-quality residences. In the meantime, property prices in neighboring countries such as Hong Kong, Thailand, Taiwan, and Singapore are becoming too expensive. For example, a luxury apartment in a prime location in HCMC costs around USD 5,000 per square meter. In contrast, the same apartment can cost four times more in Singapore and Hong Kong, making Vietnam an ideal destination for investors.
In 2022, the Vietnamese real estate market saw ups and downs, and many businesses in the sector were compelled to restructure by reducing expenses and staff. The post-pandemic economic recovery in the nation and early indications of a recovery in the sector marked the beginning of the year. However, the market started to stall in the second quarter of 2022.
Only approximately 1,250 units were available during the third quarter, and trading decreased to under 52%. Only 450 units were up for main sale in the city in the last quarter, and only roughly 100 apartments were sold. The HCMC Real Estate Association reports that the cost of homes has increased over the previous five years (HoREA). The highest affordable housing unit pricing is around USD 84,620, roughly 20 times more than the average Vietnamese worker's yearly wage.
Vietnam Luxury Residential Real Estate Industry Segmentation
Prime location, high-end interior finishes such as marble countertops, professional-quality kitchen appliances, customized closets, and hotel-like amenities such as concierge services, a top-of-the-line fitness center, and a spa center are often staples of a luxury building.
Vietnam's luxury residential real estate market is segmented by type (apartments and condominiums, villas, and landed houses) and by cities (Ho Chi Minh City, Hanoi, and other cities).
The report offers market size and forecasts in USD for all the above segments.
By Type | |
Apartments and Condominiums | |
Villas and Landed Houses |
By City | |
Ho Chi Minh City | |
Ha Noi | |
Other Cities |
Vietnam Luxury Residential Real Estate Market Size Summary
The Vietnam luxury residential real estate market is experiencing significant growth, driven by increasing affluence and a rising demand for upscale properties. The market is becoming a hotspot in Southeast Asia, with Ho Chi Minh City witnessing rapid price increases. Despite challenges during the COVID-19 pandemic, such as decreased foreign buyer activity and a temporary market stall, the sector has shown resilience. The demand for luxury apartments is bolstered by the influx of wealthy international investors and a burgeoning middle and upper class. Vietnam's favorable economic conditions and recent legal changes facilitating foreign property ownership have further attracted global investors, making it an appealing destination compared to neighboring countries with higher property prices.
The market is characterized by a mix of local and international players, with key companies like SonKim Land, Dat Xanh Group, FLC Group, Vingroup, and CapitaLand actively participating. These players are employing strategies such as partnerships and acquisitions to expand their market presence. The development of urban branded residences, particularly in areas like District 1 and Thu Duc City, is meeting the demands of high-net-worth individuals seeking luxury living with premium amenities. As the affluent population in Vietnam continues to grow, the market is poised for further expansion, with luxury apartment prices in prime locations reaching new heights.
Vietnam Luxury Residential Real Estate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.1.1 Incremental urbanization rate accelerates Vietnam's demand for luxury residential real estate
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1.2.1.2 Growing middle-class buyers drive the market
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1.2.2 Restraints
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1.2.2.1 High imbalance in population versus real estate index
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1.2.3 Opportunities
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1.2.3.1 Increase in foreign demand and foreign investments
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1.3 Value Chain / Supply Chain Analysis
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1.4 Industry Policies and Regulations
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1.5 Technological Developments in the Sector
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Buyers/Consumers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Apartments and Condominiums
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2.1.2 Villas and Landed Houses
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2.2 By City
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2.2.1 Ho Chi Minh City
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2.2.2 Ha Noi
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2.2.3 Other Cities
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Vietnam Luxury Residential Real Estate Market Size FAQs
How big is the Vietnam Luxury Residential Real Estate Market?
The Vietnam Luxury Residential Real Estate Market size is expected to reach USD 3.64 billion in 2024 and grow at a CAGR of 13.65% to reach USD 6.89 billion by 2029.
What is the current Vietnam Luxury Residential Real Estate Market size?
In 2024, the Vietnam Luxury Residential Real Estate Market size is expected to reach USD 3.64 billion.