Vietnam's residential property market is gaining traction among High-Net-Worth Individuals (HNWIs) and investors, driven by robust GDP growth, urbanization, and its strategic "China+1" role, according to Knight Frank. With a projected 6.1% GDP growth in 2024, Vietnam is poised as the region's second-fastest-growing economy after India. High-end apartment prices in Ho Chi Minh City and Hanoi, ranging from USD 5,400 to USD 15,000 per sq.m, offer strong growth potential. Expanding infrastructure, such as highways and metros, boosts connectivity and property values. Combining luxury with affordability, Vietnam's market appeals to investors and expatriates, solidifying its position among Asia-Pacific's emerging real estate hubs.
Vietnam's residential property market is attracting High-Net-Worth Individuals (HNWIs) and investors, driven by robust GDP growth, urbanization, and its pivotal role in the "China+1" strategy, as highlighted in a report by Knight Frank. The report identifies Vietnam as a key player in the region's luxury real estate market, assessing 15 markets using five indicators: Economy, Human Capital, Quality of Life, Environment, and Infrastructure & Mobility. With a projected GDP growth of 6.1% in 2024, Vietnam is set to be the region's second-fastest-growing economy after India, indicating strong prospects for its real estate sector. High-end apartment prices in Ho Chi Minh City and Hanoi range from USD 5,400 to USD 15,000 per sq.m, comparable to global markets but with notable growth potential.
The ongoing expansion of highways, metro systems, and airports is boosting connectivity and increasing property values in Vietnam's emerging urban areas. Knight Frank's report highlights that Vietnam's affordable yet high-quality real estate is drawing expatriates and investors, particularly to areas like District 1 and Thu Duc City in Ho Chi Minh City, known for their business centers and serene riverside views. Nguyen Truong Anh, Research Manager at Knight Frank Vietnam, emphasized that the country's rapid economic growth and strategic location make it an attractive destination for both investors and expatriates. Blending luxury with affordability, the market is well-positioned for sustained growth. Kevin Coppel, Managing Director of Knight Frank Asia-Pacific, added that as global wealth shifts and geopolitical dynamics change, wealthy individuals are increasingly seeking premier residential locations that offer both lifestyle appeal and financial security.
Markets such as Singapore, Japan, and Australia continue to attract the world's most discerning investors. Alongside Vietnam, other emerging Asia-Pacific markets are undergoing significant transformations. For example, Manila in the Philippines leads Knight Frank's Prime Global Cities Index for Q3 2024, with a remarkable 29.2% annual growth in prime residential prices, driven by economic optimism and pre-sale pricing for luxury developments. In India, the region's fastest-growing economy with a projected 7.0% GDP growth in 2024, the residential market achieved record-high quarterly sales in Q3 2024, with 46% in the luxury segment. Meanwhile, Bangkok's prime real estate market remains resilient, with over 80% of available inventory sold despite challenges such as land shortages and rising costs.
In conclusion, Vietnam's residential property market is poised for significant growth, attracting high-net-worth individuals and investors due to its robust economic performance, urbanization efforts, and strategic positioning in the "China+1" strategy. With increasing infrastructure development and competitive pricing, Vietnam stands out among emerging markets in the Asia-Pacific, creating appealing opportunities for both luxury living and investment.
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