Cushman & Wakefield: Overview of Vietnam’s Real Estate Market in the First Half of 2024

On July 10, 2024, Cushman & Wakefield Vietnam and The Executive Centre co-organized a press conference titled "Overview of Vietnam’s Real Estate Market in the First Half of 2024”, and forecast market trends for the coming period. The press conference took place at The Nexus Building Tower 2 and attracted more than 50 journalists and television representatives.

At the press conference, Ms. Trang Bui, General Director of Cushman & Wakefield, shared highlights information about the first half of the year, including:

• In the Q2 of 2024, the domestic Gross Domestic Product (GDP) increased by 6.93%. For the first six months of 2024, GDP grew by 6.42%.
• Foreign Direct Investment (FDI) into Vietnam increased by 8.2% compared to the same period last year, reaching the highest level in the past 5 years.
• The Land Law 2024, the Housing Law 2023, and the Real Estate Business Law 202 will take effect from August 1, 2024, and are expected to have positive impacts on the market.

• The apartment market experienced a 54% reduction in new supply compared to the same period last year. However, the average primary selling price still increased by 9% in Q2 2024.
• The landed property market witnessed the emergence of a new type of commercial townhouses combined with apartments. Primary landed property prices rose by 17% compared to the previous quarter.
• The office market received new supply of 105,000 m², with occupancy rates reaching 81% for Grade A offices and 86% for Grade B offices.
• The retail market had new supply totaling 52,421 m², with average rental prices decreasing slightly by 1.5% from the previous quarter.
• Finally, the industrial market absorbed a net land area of 79 hectares in the first six months of the year, with warehouse rental rates increasing by 1.1% in the quarter. 

Cushman & Wakefield Vietnam conducted a survey with 12 questions to understand the expectations of today's workforce regarding workspace usage. The company collected responses from over 2,500 employees from approximately 550 companies, ranging from 25 to 1,000+ employees, across 15 different industries. The survey results revealed that a majority (82%) of employees surveyed have not yet adopted a hybrid work model. Meanwhile, the remaining percentage has implemented remote work policies, but the execution rate remains below 25%. A clear conclusion drawn from the survey is that 78% of respondents believe office utilization capacity will either remain unchanged or continue to increase over the next three years. 

Ms. Luong Thi My Thanh, the CEO of TEC, added: “For a shared working environment like TEC, a workspace will no longer just be a short-term strategy, but must be comprehensively designed to meet the long-term needs of users. Employee well-being and sustainability in terms of design and equipment are essential. In addition, workspaces should incorporate green spaces, be provided with maximum natural light, good ventilation, and the ability to control the temperature of the environment inside the building.” The future of the office market in Vietnam will continue to develop with flexibility and a focus on people, while also meeting sustainability and environmental criteria. These essential trends are crucial for businesses to grasp, contributing to improved operational efficiency and talent attraction.

Get the report here:

• Ho Chi Minh City
• Hanoi