Real estate tycoons compete to hunt for clean projects with great potential

Numerous positive policy signals, strong involvement from both domestic and foreign investors, and the influx of foreign capital have made real estate mergers and acquisitions (M&A) a focal point of the market.

A series of multi-billion dollar deals

According to data from Grant Thornton, in July alone, the country recorded 34 completed M&A transactions across various sectors with a total value of nearly $786 million. Of these, real estate continued to play a dominant role with 7 deals totaling $483 million, equivalent to 62% of the entire market. This recovery, according to the research firm, stems from important legal reforms such as the 2024 Land Law and the Digital Technology Law enacted in June 2025, along with the market's improved capital absorption capacity.

According to a report by the General Statistics Office ( Ministry of Finance ), in the first seven months of 2025, total registered foreign direct investment (FDI) – including new capital and M&A – reached US$24.09 billion, an increase of 27.3% compared to the same period last year. The biggest highlight remains the transactions related to real estate.

Đại gia bất động sản đua nhau săn dự án sạch với tiềm năng lớn - Ảnh 1. — A section of the Paragon Dai Phuoc project ( Dong Nai province) has just been sold by Nam Long to Nishi Nippon Railroad.

Among the notable recent deals, Vinaconex Group sold 70% of its shares in Vinaconex ITC (the investor of the 172-hectare Cat Ba Amatina urban tourism project in Hai Phong) to three domestic investors for an estimated total value of US$250-300 million. Gateway Thu Thiem Company, a member of Huong Viet Holdings, spent over VND 2,600 billion to acquire 42% of Nam Rach Chiec Joint Stock Company from Kepple Land Group (Singapore), thereby gaining control of the Palm City project - a 30-hectare mixed-use urban complex in Ho Chi Minh City.

Another noteworthy deal came from UOA Group, a major Malaysian real estate conglomerate. Through its subsidiary, UOA Vietnam, the company spent US$68 million (approximately VND 1,700 billion) to acquire all shares in VIAS Hong Ngoc Bao Company.

The deal is expected to be completed in September, giving UOA the right to develop a prime plot of land spanning over 2,000 m² on Vo Thi Sau Street, opposite Le Van Tam Park. This is a rare remaining prime location in the heart of Ho Chi Minh City, with approved plans for the construction of a 22-story building. UOA plans to develop a Grade A office project there, adding high-end products to the office market which is currently experiencing a shortage of quality supply.

Not only foreign corporations, but also domestic businesses are actively participating in the M&A wave, such as: Hoa Sen Group continuously acquiring land near Long Thanh Airport (Dong Nai province). Saigon General Services Joint Stock Company (Savico) completed the transfer of its stake in the Long Hoa - Can Gio high-end residential project to GELEX Infrastructure Joint Stock Company.

Meanwhile, KIDO Group's leadership stated that they are seeking investment and M&A cooperation with reputable domestic and international partners to implement large-scale projects. Currently, the group owns a significant amount of undeveloped land, including a plot of over 15 hectares near Mui Den Do (formerly District 7), with an estimated total commercial value of up to $3 billion USD. Several partners have initially approached them and are awaiting a suitable plan before officially participating.

Similarly, Dat Xanh Group also openly expresses its ambition to expand its land bank through M&A, stating that it is actively seeking projects with complete legal documentation, large scale, and immediate implementation potential, in order to shorten the time to bring products to market.

There is still plenty of room for improvement.

According to Ms. Giang Huynh, Director of Research & Services at S22M, Savills Ho Chi Minh City, the merger of administrative units to reduce the number of provinces and cities to 34 from July 1, 2025, has opened up new development opportunities and boosted investment flows into real estate, including M&A activities.

Meanwhile, Ms. Nguyen Le Dung, Head of Investment Advisory Services at Savills Hanoi, believes that domestic investors have recently dominated in terms of M&A transactions thanks to their quick decision-making ability and market understanding. However, in large-scale deals, especially in the high-end housing, urban development, and industrial real estate sectors, foreign investors still play a leading role.

For example, Capitaland (Singapore) acquired a project in the former Binh Duong province from Becamex IDC for $553 million; the Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development consortium partnered with Kim Oanh Group to develop The One World project (formerly in Binh Duong province); and Nishi Nippon Railroad acquired a 25% stake in the Paragon Dai Phuoc project (Dong Nai province) from Nam Long.

According to Mr. Vo Hong Thang, Deputy General Director of DKRA Group, M&A activity has been noticeably vibrant since the beginning of the year. Statistics from listed companies show that the number of publicly announced M&A projects has increased by about 20%-30% compared to the same period last year, and the actual number may be even higher as many deals have not yet been announced.

Notably, most investors now prioritize projects that have completed all legal procedures or are only in the final stages of completion, with many older projects having their issues resolved and being restarted. "The important thing is that projects with complete legal documentation usually have quite high transfer prices. To approach and close deals, new companies need strong financial capacity, development experience, and a brand to create synergistic value after the M&A," he emphasized.

Ms. Nguyen Le Dung believes that from now until the end of 2025, M&A activities will have many opportunities for breakthroughs thanks to factors such as legal reforms, proactive economic diplomacy strategies, and capital flows seeking sustainable value. She noted that many investment funds now prioritize ESG (environmental, social, and governance) criteria and long-term efficiency, thereby promoting the shift of capital into green projects, industrial parks, and housing for professionals.

Mr. Vo Hong Thang added that the draft amendments to the Land Law and the 2023 Real Estate Business Law are becoming a major driving force for the market. The new regulations will simplify land acquisition procedures, improve access to "clean" land, and reduce legal risks for investors, especially foreign investors. He assessed that the vibrancy of M&A not only helps restructure the market but also contributes to resolving the capital shortage and project inventory issues.

Pressure on real estate prices

However, many experts warn that the rapid increase in large-value transactions could put pressure on real estate prices. A vibrant M&A market could drive up property prices, create barriers to access for buyers, and increase the risk of a bubble if left unchecked.

Moreover, once the project's legal documentation is complete, the asking price is often so high that it exceeds the reach of many investors. Therefore, only foreign investment funds or strong domestic developers have the advantage in successfully closing deals. "For this reason, most upcoming M&A transactions will focus on the high-end real estate segment, especially land plots in urban centers," said Mr. Vo Hong Thang.

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