HCMC, Vietnam – April 3, 2025 – Savills Vietnam has released its Q4/2024 report, highlighting significant growth and trends in the residential, office, and construction sectors in both Ha Noi and Ho Chi Minh City.


RESIDENTIAL MARKET

In Ha Noi, the Residential Index surged by 28 points quarter-on-quarter (QoQ) to 194.5, with prices averaging VND 62 million/m² net sellable area (NSA), marking a 17% increase QoQ. Sales were robust, with 13,401 units sold, up 96% QoQ and 340% year-on-year (YoY). New supply contributed 83% of sales, achieving an impressive 85% absorption rate.

Ho Chi Minh City saw its Residential Index peak at 132 points, up 5 points QoQ and YoY. Primary prices increased by 33% YoY, driven by high-priced new supply, while secondary prices rose by 13% YoY across all districts. Absorption rates improved, with reputable developers offering good connectivity and flexible payment plans.


OFFICE MARKET

The Ha Noi Office Index registered a slight decline, down 3 points QoQ and YoY to 67 points. Grade A and B occupancies fell, while Grade C saw a minor improvement. The CBD index rose by 1 point QoQ and 4 points YoY, with rents averaging VND 825,000/m²/month.

In Ho Chi Minh City, the Office Index remained stable at 97 points. The CBD index stood at 106 points, with occupancy steady at 89%. The non-CBD index saw a slight increase, supported by improved Grade B occupancy.


CONSTRUCTION COSTS

In Ho Chi Minh City, the construction price index remained stable YoY at 119, while the construction materials price index fell by 2 points YoY to 122. The labour price index increased by 3 points YoY.

Ha Noi experienced a notable increase in its construction price index, rising to 108, up 3 points QoQ and 2.9 points YoY. The construction materials price index also saw an uptick, reflecting rising costs since Q1/2024.


LABOUR FORCE AND BUSNIESS CONFIDENCE

Vietnam's labour force grew by 575,400 YoY to 53 million people, with the employed population rising to 51.9 million. The Business Confidence Index (BCI) for Q4/2024 increased significantly to 61.8 points, indicating a positive market outlook.


CONSUMER SENTIMENT

The Consumer Confidence Index (CCI) reached 54 points in January 2025, remaining in the "Very Cautious" category YoY. Optimism about Vietnam's economic recovery remains stable but cautious, with 40% of respondents expecting 2025 to be better than 2024.