SOUTHEAST ASIA OUTLOOK 2025

Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

Ho Chi Minh City Key Property Data

PIPELINE SUPPLY OVER CURRENT INVENTORY RATIO (%)

HO CHI MINH CITY

RENTS Q4 2024 (US$ PER SQM) 2025 FORECAST

VACANCY Q4 2024 (%) 2025 FORECAST

CURRENT INVENTORY (MILLION SQM)

PIPELINE SUPPLY (MILLION SQM)

CAPITAL VALUE OUTLOOK 2025

OFFICE (CBD GRADE A)

56.45

10.1

0.38

0.21 (2025-2027)

55%

RETAIL

52.73

7.8

1.18

0,12 (2025-2027)

10%

READY-BUILT INDUSTRIAL (SKER*) RESIDENTIAL APARTMENT

4.4

22.7

6.3

1.1

17%

Price: 3,672

N.A.

362,000 units

36,427 units

9.9%

VIETNAM MARKET SNAPSHOT Economy

Source: Cushman & Wakefield Research *SKER: Southern Key Economic Region includes Ho Chi Minh City, Binh Duong Province, Dong Nai Province, Long An Province, and Ba Ria – Vung Tau Province All rents are inclusive of SC but exclusive of VAT US$/VND = 25,500 as of Q4 2024

Occupier Market Commentary and Recommendations Office: Over the next 3-5 years, the CBD and the South are anticipated to see an influx of large-scale Grade A project. The operation of first Metro Line in HCMC is expected to positively impact to office assets located around its stations.

Industrial: In 2025 – 2027 when a significant amount of industrial land enters the Southern market, the RBF type is expected to be a priority for investment and development, especially in the SKEZ area. Residential: As of 9 December 2024, HCMC authorities announced that 34 out of 64 real estate projects in the city have had their difficulties resolved. This may help unlock new future supply, with over 10,000 apartment units anticipated to be launched in 2025, marking the start of a new cycle.

Retail: Retail developers have announced ambitious expansion plans to leverage local advantages such as urbanization, a young population, and a rising middle income group. Notable projects in the Greater HCMC region include Aeon Mall Bien Hoa in Dong Nai Province and Aeon Tan An in Long An Province.

Hanoi Key Property Data

Vietnam is expected to achieve a GDP growth of 6.5% in 2025, according to World Bank.

PIPELINE SUPPLY OVER CURRENT INVENTORY RATIO (%)

The country will continue to attract foreign investment, especially in manufacturing and electronics. Vietnam’s trade agreements and strategic location reinforce its global economic integration, according to International Monetary Fund (IMF). As of 2024, FDI into Vietnam reached 38.23 billion USD, down nearly 3.9% compared to the same period last year, with South Korea, China, and Hong Kong leading the way.

RENTS Q4 2024 (US$ PER SQM) 2025 FORECAST

VACANCY Q4 2024 (%) 2025 FORECAST

CURRENT INVENTORY (MILLION SQM)

PIPELINE SUPPLY (MILLION SQM)

CAPITAL VALUE OUTLOOK 2025

HANOI

OFFICE (CBD GRADE A)

38.27

10.3

0.1

0.01

10%

RETAIL

44.61

14.3

1.4

0.28

20%

READY-BUILT INDUSTRIAL (NKER*) RESIDENTIAL APARTMENT

4.9

33.7

3.0

0.9 (2025-2027)

29%

Key Market Developments KEY INFRASTRUCTURE/ECONOMIC DEVELOPMENTS (EXPECTED COMPLETION) HCMC and Southern Key Economic Zone: • Long Thanh International Airport will be basically completed at the end of 2025. • The entire Ring Road 3 will be opened to traffic on June 30, 2026. • Ring Road 4 is in the pipeline for execution. • The expansion of Ho Chi Minh City - Trung Luong Expressway and National Highway 1, National Highway 50B, and the implementation of coastal and border routes. Hanoi and Northern Key Economic Zone: • Tu Lien Bridge, Ngoc Hoi Bridge, Tran Hung Dao Bridge, • Component project 3 of Ring Road 4 - Capital region • Land Law • Real Estate Business Law • Housing Law • Proposal to merge provinces by reducing the total number from 63 to 34

Price: 2,917

N.A.

409,500 units

64,500 units

16%

Source: Cushman & Wakefield Research *NKER: Northern Key Economic Region includes Hanoi City, Hai Phong City, Quang Ninh Province, Bac Ninh Province, Hung Yen Province, Hai Duong Province, and Vinh Phuc Province. All rents are inclusive of SC but exclusive of VAT, US$/VND = 25,500 as of Q4 2024

TYPE

IMPLICATIONS / AREAS TO WATCH

• Infrastructure

• Long Thanh International Airport is envisioned to boost Vietnam Southern to become an air transshipment hub in the Southeast Asian region. • Create momentum for economic development in the Southeast region and reduce logistics costs for business.

Occupier Market Commentary and Recommendations Office: Amid highly competitive market landscape, developers tend to introduce future projects with modern specifications and green certificates, which would attract occupiers seeking premium offices. Retail: Over the next three years (2025 – 2027), approximately 17 retail projects will add 278,000 sq.m of retail space, with the West area accounting for up to 46% of the future supply. Retail developers are also expanding into nearby provinces, as seen with projects like Vincom Megamall Ocean Park 2 in Hung Yen and Aeon Mall Ha Long in Quang Ninh.

Industrial: Approximately 4,000 hectares of industrial land is forecasted to enter the market between 2025 and 2027. Many industrial parks are showing signs of delays due to site clearance and compensation issues, which may postpone their launch to 2026 and beyond. Residential: In 2025, around 18,700 new apartment units are expected to be launched, mainly in suburban areas like Gia Lam and Dong Anh District. The CBD, Secondary, and Western areas are likely to face a shortage of apartment supply. Suburban districts will lead in new supply due to ongoing infrastructure development and urban planning.

• Infrastructure

• Facilitate the circulation of goods, reduce traffic congestion, and promote the development of suburban areas.

• Law Update

• The new Land Law, Real Estate Business Law, Housing Law and other guiding decrees, will simplify legal procedures, improve the project’s legal transparency, facilitate the residential buyers, and create more opportunities for foreign investors.

Source: Cushman & Wakefield Research

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CUSHMAN & WAKEFIELD