Real estate mergers and acquisitions market: Strategic alliances reign supreme

If in the past, M&A activities were led by domestic enterprises thanks to the advantages of land funds and financial potential, now foreign investors are emerging, accelerating in both scale and strategy.

Real estate in the central area of ​​Ho Chi Minh City. (Photo: Hong Dat/TTXVN)

The mergers and acquisitions (M&A) market in Vietnam's real estate sector in 2025 is witnessing a clear shift in the investor structure.

While previously M&A activity was led by domestic businesses thanks to their land resources and financial strength, foreign investors are now emerging as a proactive force, accelerating in both scale and strategy.

In this context, polarization is taking place: it's no longer a "big fish eats little fish" game, but rather a period of careful selection and filtering aimed at optimizing efficiency and sharing value.

Foreign investors accelerate their investments, while domestic investors remain cautious.

According to the latest survey by CBRE Vietnam, in the past two quarters, foreign capital inflows into the real estate sector accounted for 24% of total foreign direct investment (FDI) into Vietnam – a figure reflecting strong interest from foreign investors.

Notably, CapitaLand (Singapore) made a multi-million dollar investment in the Hai Dang subdivision of Vinhomes Ocean Park 3 ( Hung Yen ).

Previously, the group had already established a presence in Vietnam through major projects such as Lumi Hanoi and The Senique Hanoi. CapitaLand also expressed plans to expand its investment by $5-7 billion in the next few years, demonstrating its long-term confidence in the Vietnamese real estate market.

Ha Dong is one of the areas in Hanoi that many investors choose to develop projects in. (Photo: Tuan Anh/VNA)

The influx of foreign capital is not limited to the housing sector; it has also spread to industrial real estate. A Swedish investor has announced plans to build a $1 billion manufacturing plant in Gia Lai province – a move that demonstrates a vision combining industry, manufacturing, and logistics real estate development.

In the northern region, Kinh Bac Urban Development Corporation has partnered with the Trump Organization (USA) on a high-end golf course project in Hung Yen province. This deal is highly regarded for its brand value and implementation capabilities, and it opens up a multi-tiered linkage model between capital, technology, and international standards.

However, in contrast to the dynamism of foreign investors, domestic businesses remain cautious. According to CBRE, up to 60% of domestic businesses have not participated in any M&A deals, 39% are considering postponing investment plans, and 21% have officially delayed cash flow to ensure financial safety.

The reasons given are the scarcity of new supply, weakened purchasing power, and lingering financial pressure from previous years.

For example, in the second quarter of 2025, the entire Ho Chi Minh City market only saw about 1,000 apartments and 74 low-rise houses launched for sale – a record low in the last 10 years. Despite many developers implementing stimulus policies such as discounts up to 16%, long-term interest rate support, and complimentary high-end interior design packages, the market has yet to recover.

A leader of a major business shared that during this period, businesses must protect their cash flow as if it were their "lifeblood." Financial difficulties, coupled with slow restructuring progress and debt pressure, are causing domestic businesses to "retreat" to defend themselves.

"Big fish" don't easily swallow "small fish."

Despite having the upper hand in terms of capital flows, foreign investors cannot easily "take over" the real estate market as some concerns have previously suggested.

According to experts, the era where "big players" used financial muscle to dominate the market is over. Real estate M&A is entering a new cycle where collaborative capabilities, legal expertise, risk control, and long-term strategies become key factors.

(Photo: Tuan Anh/VNA)

In fact, a series of M&A deals led by domestic businesses have been recorded in the first six months of this year. A prime example is Bcons Group's acquisition of a nearly 19,000 m² project in Ho Chi Minh City from Thuduc House.

Sun Group invested in a prime plot of land in the Cau Giay New Urban Area (Hanoi) to develop the Sun Felia complex. Sunshine Group also acquired 55 hectares of land from Xuan Cau Holdings in Van Giang to develop the large-scale Alluvia City project.

Notably, the transaction in which Phat Dat transferred 80% of its shares in the Thuan An 1-2 project to a foreign investor with long-standing experience in Vietnam exemplifies a mutually beneficial cooperation model. The domestic enterprise retains the land and legal rights, while the foreign partner brings capital, technology, and international development standards.

Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, commented that it is not easy for foreign businesses to "take over" the Vietnamese market. The biggest obstacle for them is not money, but clean land and legal procedures.

It is currently very difficult to find several thousand square meters of cleared land in the heart of Ho Chi Minh City – where the supply has been almost frozen for three consecutive years. However, this is a significant advantage for domestic businesses, as they not only possess many cleared land plots and understand local regulations, but can also process procedures more quickly. From this position, domestic businesses can proactively raise capital instead of passively selling themselves.

Sharing the same view, expert Tran Thi Khanh Van believes that the current trend is no longer "big fish swallowing small fish" but rather "smart fish joining forces with strong fish." If domestic businesses know how to utilize M&A as a strategy to upgrade their internal strength, they can completely turn the tide and develop more sustainably.

Analysts also agree that the market is entering a "clear phase of consolidation." M&A deals are no longer widespread but highly selective, focusing on synergistic value between the two parties in terms of finance, brand, technology, and implementation capabilities.

Mr. Vo Huynh Tuan Kiet - Director of Residential Marketing at CBRE Vietnam, commented, "The 'game' now belongs to investors with a long-term vision, clear strategies, and practical operational capabilities. This is a shift from opportunistic M&A to strategic M&A."

Representatives from JLL Vietnam also emphasized that the real estate market is shifting from a state of "accumulating land to hold assets" to a phase of efficiently exploiting every square meter of land through joint ventures, partnerships, and multi-layered cooperation.

The period from 2024 to 2026 is predicted to be the peak of real estate M&A activity, with an increase in both the number of transactions and investment value. However, according to experts, success depends not only on financial capacity but also on the ability of the participating parties to cooperate and develop long-term strategies.

In this evolving landscape, domestic businesses are not standing idly by. If they can leverage their inherent advantages such as clean land, market understanding, and local coordination capabilities, combined with the capital and technology of foreign partners, then M&A is no longer a "way out" but can become a "stepping stone" to upgrade capabilities and expand market share.

Therefore, the real estate market in 2025 is no longer a matter of "swallowing or being swallowed," but rather a strategic challenge of cooperation, linkage, and resource optimization to move forward together.

Source: https://baolangson.vn/thi-truong-mua-ban-sap-nhap-bat-dong-san-lien-ket-chien-luoc-len-ngoi-5055554.html