Asia’s Real Estate Investors Turn Selective, Vietnam Emerges As Key Market

Asia Pacific’s real estate market has entered a selective phase, with investors increasingly favouring assets backed by strong rental growth, connectivity and long-term demand. For instance, in Vietnam, this is translating into a push towards large, integrated urban developments as infrastructure investment and rising urbanisation reshape the property landscape.

Commercial real estate investment in Asia Pacific rose 27% year-on-year in the first half of 2026, despite higher interest rates and geopolitical uncertainty, according to CBRE’s 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review. While transaction momentum is expected to moderate in the second half, investors are increasingly focusing on markets and assets with stronger rental-growth prospects.

According to the report, Vietnam’s hotel market outperformed in the first half of 2026, helped by strong visitor arrivals. The trend highlights the growing importance of integrated destinations that combine residential, commercial, hospitality and leisure infrastructure rather than functioning as standalone housing projects.

The residential market is showing similar momentum. In Ho Chi Minh City, 1,642 condominium units were launched in the first quarter of 2026, a 369% year-on-year increase, the report added. While landed-housing supply remained limited, the sharp rebound in condominium launches points to renewed activity in the country’s largest urban market.

This environment is encouraging developers to build entire urban ecosystems around transport and infrastructure. Transit-oriented development (TOD), which places homes, workplaces, retail and essential services around major transport nodes, is increasingly being adopted across Asian cities as governments seek to manage congestion and accommodate expanding populations.

Vinhomes is pursuing this model through mega developments at opposite ends of Vietnam. Its 2,870-hectare Vinhomes Green Paradise in Can Gio, near Ho Chi Minh City, is being developed as an integrated urban and tourism destination, with the proposed high-speed rail connection expected to significantly improve access to the city centre.

In northern Vietnam, its 6,200-hectare Global Gate Ha Long is similarly being positioned around large-scale transport and urban infrastructure. The planned Hanoi-Quang Ninh high-speed railway is expected to cut travel time between Hanoi and Quang Ninh to about 23 minutes once operational.

The strategy comes as the region’s property market increasingly rewards quality and location. CBRE noted that occupiers across Asia Pacific are prioritising modern, well-located assets, while investors are focusing on income resilience and portfolio optimisation.

For Vietnam’s developers, therefore, the next phase of competition may not simply be about adding housing supply. It could increasingly centre on who can build connected urban centres capable of attracting residents, businesses, tourists and investment around a single infrastructure-led ecosystem.