Vietnam is in the top three most preferred emerging markets for investment

Vietnam – 19 February 2024 

CBRE’s 2024 Asia Pacific Investor Intentions Survey was conducted in November and December 2023. Over 500 responses were received from participants who were asked a range of questions related to their buying intentions, perceived challenges and preferred strategies, sectors and markets for the coming year

Investor selling and buying intentions
The survey uncovered persistently weak buying intentions across Asia Pacific, with selling intentions hitting the highest mark since surveys began. Whilst the interest rate hike, cycle has come to a halt in major global markets, investors are waiting for indications that the current repricing cycle has finished before deploying significant amounts of capital. Investors in most markets (ex. Japan) will therefore continue to adopt a wait and see approach in H1 2024. However, amid growing expectations that the U.S. Federal Reserve will begin cutting rates in H2 2024, and Asia Pacific’s central banks following suit, commercial real estate investment activity should accelerate in the back half of the year.

Top markets for cross-border investments
Japan retained its position as the most preferred developed market for cross-border investment for a fifth consecutive year. Singapore and Australia followed in second and third place, respectively. Investors remain attracted to highly liquid markets with stable income.

With most investors in Asia Pacific looking for double digit target returns, investors have turned to value-added and distressed assets/debt solutions. Value-added strategies topped the list for preferred investment strategies in 2024. Additionally, over 60% of investors, the bulk of which are private equity funds, real estate funds and REITs, intend to retrofit existing buildings to be more sustainable or ESG-compliant in 2024; a trend ensuring value-added strategies are their preferred approach.



In CBRE survey, Vietnam has secured the second position among the most sought-after emerging markets for value-added and opportunistic investment strategies. This ranking places Vietnam just behind India in terms of attractiveness to investors.

Vietnam market presents a unique landscape where portfolios consisting of income-producing assets are scarce and typically not available for sale. As a result, most investors in Vietnam focus their attention on industrial and office assets, aligning with the prevailing trend observed across the Asia-Pacific (APAC) region. Vietnam's robust economy and export-oriented strategy have propelled trade activities, thereby underscoring the critical importance of efficient logistics and supply chain management. Investors recognize the potential in supporting and capitalizing on these requirements, further driving the demand for industrial assets.

Additionally, residential development sites in Vietnam continue to generate strong interest from foreign developers and investors. Many are actively exploring opportunities in distressed assets or properties owned by landlords facing legal challenges or limited access to funding sources. This trend highlights the resilience and attractiveness of the residential sector in Vietnam.

Regionally, central bank policy rates and economic uncertainty are the top two concerns for investors in 2024, although these worries have significantly eased compared to last year. The mismatch in pricing expectations between buyers and sellers remains a major concern for investors, despite repricing occurring in most markets and sectors in Asia Pacific in 2023.

The top three challenges in sourcing debt for real estate investment in Asia Pacific include less favourable loan-to-value (LTV) ratios and/or credit spreads, increased interest expenses on new loans, and uncertain interest rate movements.

Duy Nguyen, Investment Properties Director at CBRE Vietnam: "Investors with a long-term view on the potential of Vietnam's economy and ready to deploy capital are most likely to reap the benefits of the repricing and decompression of asset yields. This is particularly true when sellers are seeking to exit at the conclusion of their investment window."