Vietnam Residential Real Estate Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Vietnam Residential Real Estate Market Growth

Real estate is a property which consists of lands, buildings, and other tangible assets that are owned or rented by a person. Residential real estate refers to properties such as apartments, duplexes, condominiums, and multifamily homes, among others, that are mainly used for housing purposes.

The Vietnam residential real estate market dynamics and trends are driven by rapid urbanization, fuelled by rising living standards, economic growth, and increased immigration. These trends have significantly heightened the demand for housing in urban areas.

Vietnam Residential Real Estate Market Analysis

Rising demand for luxurious and modern residential real estate is another crucial trend aiding the market expansion. Real estate developers are focused on building housing solutions for the upper-class community of the country as well as rich migrants seeking to work and settle in Vietnam.

Growing land acquisitions by international market players are also expected to contribute to the Vietnam residential real estate industry growth.

Vietnam Residential Real Estate Industry Outlook

Between 2009 and 2015, Hanoi saw the provision of 1.37 million new housing units. This number increased to 1.52 million units from 2015 to 2022, reflecting a growth of approximately 10.9%. The number of housing units needing replacement remained steady at 0.68 million units for both periods. Total housing unit demand rose from 2.05 million units in 2009-2015 to 2.2 million units in 2015-2022, marking a 7.3% increase. Similarly, the floor area grew from 317.7 million square meters to 341 million square meters, marking a 7.3% increase. This growth reflects a substantial expansion in Vietnam residential real estate market revenue, driven by rising population pressures and the increasing demand for higher-quality housing options.

As reported by the industry reports, in 2023, the Hanoi market had approximately 33,000 newly launched apartments by the end of November 2022, an increase of nearly 2,000 units compared to the previous year. Industry research in Vietnam indicates that the high-end and luxury segments experienced growth of around 8-9% over the same period. In 2023, Hanoi had 58 projects with 31,180 condominium units, a 20.2% increase from 2019. Additionally, condominium prices in 2020 rose by approximately 0.58% compared to 2019.

The demand for social housing in Vietnam is projected to reach 2.4 million units by 2030, with 1.2 million units needed by 2025. Of the 2.7 million workers in industrial parks, 1.2 million require housing. Vietnam has completed 301 projects, delivering 155,800 urban social housing units and accommodations for industrial park workers. With over 400 additional projects underway, expected to provide about 454,360 apartments, the social housing sector is rapidly expanding. This growth is fueled by public-private partnerships and investment incentives, boosting the Vietnam residential real estate industry revenue by increasing the supply of affordable housing.

In 2023, the Vietnamese government approved a plan to build one million social housing units by 2030, mobilizing VND849 trillion (US$36.2 billion) from both private and public sources.

High demand for housing due to increasing urbanisation and rising living standards boosts the growth of the Vietnam residential real estate industry.

• Robust economic expansion enhances purchasing power and investment potential in residential properties.
• Favourable policies and incentives for real estate development encourage investment and market stability.

Fluctuating property prices and market uncertainty can impact investor confidence and market stability.

• Inadequate infrastructure development in some urban areas can hinder residential growth and accessibility.
• Complex property regulations and bureaucratic hurdles may delay project approvals and increase costs.

Expanding middle class and increased disposable income drive demand for higher-quality residential properties.

• Rising interest from foreign investors offers opportunities for capital influx and market expansion.
• Large-scale urban development projects create new opportunities in the Vietnam residential real estate market.

Potential economic slowdowns could reduce consumer spending and impact property demand.

• Excessive construction and oversupply in certain areas may lead to market saturation and price drops.
• Rapid development and urbanization could lead to environmental issues, affecting market sustainability and livability.

Key Players in the Vietnam Residential Real Estate Market and Their Strategic Initiatives

Sun Group

• Launched eco-friendly urban development initiatives to meet the growing demand of the Vietnam residential real estate market.
• Enhanced community amenities and infrastructure within residential areas.

Novaland Investment Group Corporation

• Expanded residential portfolio with several new projects across Vietnam. 
• Implemented smart home technologies in new developments.

Dat Xanh Real Estate Service Constructions Corp

• Strengthened partnerships with international investors to capture the Vietnam residential real estate market opportunities.  
• Upgraded construction technologies to improve project efficiency.

FLC Group JSC

• Launched luxury residential complexes in key urban centers. 
• Focused on green building certifications for new projects.

Vietnam Residential Real Estate Industry Segmentation

“Vietnam Residential Real Estate Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Apartments and Condominiums
• Villas and Landed Houses

Market Breakup by Budget

• Less than $300,000
• $300,001 to $700,000
• $700,001 to $1,000,000
• $1,000,001 to $2,000,000
• More Than $2,000,000

Market Breakup by Size

• Less Than 50 square meters
• 51 to 80 square meters
• 81 to 110 square meters
• 111 to 200 square meters
• More Than 200 square meters

Market Breakup by Business Type

• Sales
• Rental
• Lease

Market Breakup by Region

• Southeast
• Red River Delta
• Mekong River Delta
• South Central Coast
• Others 

Vietnam Residential Real Estate Market Share

Apartments and condominiums occupy a significant portion of the Vietnam residential real estate market share, due to the healthy economic growth of the country, coupled with a growing preference for modern housing options among the rising middle-class population.

As per the Vietnam residential real estate market analysis, rental residential real estate accounts for a substantial market share, owing to the growing migration of working professionals to cities. The rising consumer interest in renting property compared to the purchase of housing accommodation owing to benefits such as flexibility and minimal upfront costs also boosts the growth of the Vietnam residential real estate market.

Leading Companies in the Vietnam Residential Real Estate Market

The companies provide real estate services across residential, hospitality, and industrial sectors. They are committed to environmental protection and actively invests in green and sustainable real estate projects.

• Sun Group   
• Novaland Investment Group Corporation  
• Dat Xanh Real Estate Service Contructions Corp  
• FLC Group JSC  
• Hung Thinh Land Joint Stock Company    
• Phu My Hung Development Corporation   
• Vinhomes Joint Stock Company  
• Nam Long Investment Corporation  
• Phat Dat Real Estate Development Corporation  
• NovaGroup