Hanoi sees rising demand for housing from foreigners; plus additional news

For PropertyGuru’s real estate news roundup, the demand for housing from foreigners is anticipated to continue, driving an existing upward trajectory in Hanoi, and signalling a positive development for Vietnam’s domestic real estate market. In other updates, student accommodation is becoming more popular with real estate investors in the Asia Pacific region. Lastly, commercial real estate investment in Asia Pacific rose to USD131.3 billion in 2024, surpassing 2022 levels.

Housing demand from foreigners in Hanoi rises

The demand for housing from foreigners is anticipated to continue, driving an existing upward trajectory in Hanoi, and signalling a positive development for the domestic real estate market. Over several years, Hanoi has increasingly become an attractive destination for foreign workers, a trend that is set to accelerate as more opportunities for home ownership open up. VietnamPlus reports that each year, approximately 10,000 new foreign workers are granted licences to work in Hanoi. The majority of these are highly skilled professionals, which drives the demand for high-end housing options. This influx of skilled labour aligns with Vietnam’s broader economic growth and the ongoing wave of foreign direct investment (FDI) into the country.

Education-hungry Asia boosts prospects for student housing

Student accommodation is becoming more popular with real estate investors in the Asia Pacific region, buoyed by growing demand and restricted supply, reports Savills. The Urban Land Institute/PwC Emerging Trends in Real Estate Asia Pacific 2025 report found it was the fourth most popular niche sector, behind data centres, health and wellness, and senior housing. However, investment volumes into student accommodation are small compared with multifamily housing, the most popular part of the “living sector”. The biggest investment market for purpose-built student accommodation (PBSA) is Australia. Japan has a steady demand for international students, while Hong Kong has seen an upsurge of interest. In the longer term, the Indian market is considered to have considerable potential due to its size: last year there were 43.3 million students enrolled in higher education.

Asia Pacific records USD131 billion in commercial real estate investments in 2024

Commercial real estate investment in Asia Pacific rose 23 percent year-on-year (YoY) in 2024 to USD131.3 billion, surpassing 2022 levels, according to data and analysis by global real estate consulting firm JLL. Q4 volumes rose 10 percent YoY and reached USD34.9 billion, marking the region’s fifth consecutive quarter of year-on-year growth. All major property sectors recorded full-year volume growth, with the highest quarterly cross-border volume since the end of 2021. Strong cross-border investment volumes totalled USD23.8 billion in 2024, a 43 percent YoY increase from this time last year. This surge in cross-border investment was underpinned by strong interest in office and logistics assets from overseas investors in key markets like Australia, Japan, and Singapore.

The Property Report editors wrote this article. For more information, email: [email protected].