_Vietnam's real estate market among the most promising in Asia-Pacific, reports Knight Frank

Ho Chi Minh City, 25 November 2024 – Knight Frank’s Asia-Pacific Horizon Report Part 4: “Quality Life-ing: Mapping Prime Residential Hotspots” positions Vietnam as a standout market within the region’s luxury real estate sector. The report evaluates 15 markets based on five indicators – Economy, Human Capital, Quality of Life, Environment, and Infrastructure & Mobility – guiding investors and prospective movers in choosing ideal locations. With a 6.1% GDP growth forecast in 2024, Vietnam stands as the second-fastest-growing economy in the region, signaling a robust trajectory for its real estate sector

Vietnam: A fast-emerging luxury market

Vietnam’s residential property market has captured the attention of High-Net-Worth Individuals (HNWIs) and investors, driven by strong GDP growth, urbanization, and its strategic role in the "China+1" strategy.

• Pricing and demand: The average selling price for high-end apartments in Ho Chi Minh City (HCMC) and Hanoi ranges from US$5,400 to US$15,000 per square metre, aligning with global markets but offering significant growth potential.
• Economic drivers: Vietnam's GDP is projected to grow by 6.1% in 2024, making it the region’s second-fastest-growing economy after India.
• Infrastructure: Ongoing development of highways, metro systems, and airports is enhancing connectivity and property values in emerging urban areas.
• Appeal to expatriates: Vietnam’s cost-effective yet high-quality real estate offerings are attracting expatriates and investors, particularly in districts like District 1 and District 2 in HCMC, known for their corporate hubs and tranquil riverside views.

“Vietnam’s rapid economic growth and strategic location make it a compelling destination for investors and expatriates alike,” said Truong Anh Nguyen, Research Manager at Knight Frank Vietnam. “With a mix of luxury and affordability, the market is poised for long-term growth.”

Other developing markets show strong growth

Alongside Vietnam, other emerging Asia-Pacific markets are experiencing notable transformations:

• Philippines: Manila tops Knight Frank’s Prime Global Cities Index for Q3 2024, recording a remarkable 29.2% annual growth in prime residential prices. This surge is fueled by economic confidence and pre-selling prices for luxury developments.
• India: The fastest-growing economy in the region with 7.0% projected GDP growth in 2024, India’s residential market recorded its highest quarterly sales in Q3 2024, with 46% of sales in the luxury segment.
• Thailand: Bangkok's prime real estate market demonstrates resilience, with over 80% of available supply sold despite challenges like land scarcity and rising costs.
• Cambodia: Urbanization is accelerating in Phnom Penh, where demand for affordable housing is increasing as urban dwellers are projected to grow from 24.2% to 41.1% by 2050.

Asia-Pacific’s broader market insights

The Asia-Pacific region remains a resilient and attractive destination for HNWIs and expatriates:

• Safe-haven markets: Established hubs like Singapore, Australia, and Japan lead for their lifestyle and economic stability.
• Branded residences: Luxury developments with high-end amenities are increasingly popular, with Australia, India, and Thailand seeing a sharp rise in demand.

Kevin Coppel, Managing Director, Knight Frank Asia-Pacific, noted: “As global wealth shifts and geopolitical landscapes evolve, affluent individuals are seeking prime residential hotspots that provide both lifestyle benefits and financial security. Markets like Singapore, Japan, and Australia continue to attract the world’s most discerning investors.”

Vietnam’s rapid ascent in the Asia-Pacific property landscape, alongside its regional peers, underscores the continued vibrancy and promise of the region’s residential markets.

For more information, access the full Quality Life-ing report via the link here.