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

Note: At the time of writing, global policy uncertainty - particularly due to recent U.S. tariff measures- remains high. As the situation continues to evolve, the long-term impacts are unclear, and the findings in this report may be subject to change.

Now in its third edition, our latest Southeast Asia (SEA) Outlook highlights the region’s economic prospects in 2025. The report also offers occupiers and investors insights into key SEA markets, including Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

While the risk of a global economic slowdown may temper SEA’s short-term growth, the region’s demonstrated resilience and strong long-term fundamentals will continue to position it among the world’s fastest-growing economies. SEA remains one of the fastest-growing regions globally, with gross domestic product (GDP) poised to rise by 4.8% year-over-year (YOY) in 2024, outpacing the 3.9% growth recorded in 2023.

Vietnam’s Occupier Market Commentary and Recommendations

• Office: The CBD and the South is to see an influx of large-scale Grade A projects, supported by the operation of Ho Chi Minh City’s first Metro Line. In Hanoi, developers are launching projects with modern specs and green certificates to attract premium office occupiers.
• Retail: Retail developers have announced ambitious expansion plans to leverage local advantages such as urbanization, a young population, and a rising middle-income group, with notable projects including Aeon Mall in Bien Hoa, Tan An, Ha Long and Vincom Megamall Ocean Park 2.
• Industrial: Ready-built factories are expected to be a priority for investment and development, especially in the Southern market. While in Hanoi, many industrial parks face delays due to site clearance and compensation issues, potentially postponing their launch to 2026 or later.
• Residential: Set to launch over 28,700 apartment units in 2025, marking the start of a new cycle.