According to the fourth annual Southeast Asia Outlook report by Cushman & Wakefield, Singapore, Malaysia, Thailand, and Viet Nam benefit from strong trade corridors and well-developed manufacturing ecosystems, while Indonesia and the Philippines are supported by resilient domestic consumption.

In 2025, data centres emerged as the most valuable real estate asset class for investment in Southeast Asia. Johor continued to attract spillover demand from Singapore, while Thailand, Indonesia, the Philippines, and Viet Nam remained supply-constrained markets with significant room for growth. Recent large-scale investment commitments reflect sustained investor confidence in the region’s digital infrastructure outlook.

Wong Xian Yang, Head of Research for Singapore and Southeast Asia and author of the report, noted that the recovery seen in 2025 reflects not only cyclical market factors but also a structural shift in capital allocation.

“Investors are increasingly focusing on sectors linked to manufacturing expansion and digitalisation, particularly logistics and data centres. While Singapore continues to serve as the region’s liquidity hub, Southeast Asia is capturing the next wave of growth as global supply chains diversify and institutional-grade assets continue to develop across the region,” he said.

Notably, Viet Nam recorded the highest real GDP growth among the Southeast Asia-6 in 2025, at 8% — significantly higher than the pre-pandemic average of 7.1%.

Growth has been driven by exports alongside a rebound in manufacturing and services, reflecting stable global demand in addition to Viet Nam’s increasingly important role in regional production and trade networks.

At the same time, domestic consumption has remained stable, highlighting the economy’s long-term consumption potential. Manufacturing and trade sectors continue to benefit from supply chain diversification trends and inflows of foreign investment into export-oriented industries.

Looking ahead, economic growth is expected to moderate slightly. Population growth has slowed to 0.6 %, while lending rates at commercial banks have shown an upward trend toward the end of the year, potentially putting short-term pressure on housing demand and consumer spending.

Nevertheless, Viet Nam’s economy is projected to grow by 6.3% in 2026, maintaining its position as one of the fastest-growing economies among the Southeast Asia-6.

From a real estate perspective, the industrial segment remains a key growth driver. Viet Nam continues to benefit significantly from the China+1 strategy, thanks to its strategic location, improving infrastructure, and the development of large-scale electronics manufacturing clusters. Meanwhile, the retail real estate segment is expected to gain momentum in 2026, with retail sales forecast to grow by more than 15%, driving demand for modern retail spaces in major urban centres.

Although data centres were the most valuable investment asset class in emerging Southeast Asia (excluding Singapore) in 2025, Viet Nam’s data centre market is still in its early stages compared to regional peers. This suggests substantial long-term growth potential, driven by rising demand for digital infrastructure alongside the expansion of cloud computing services, artificial intelligence applications, and Viet Nam’s rapidly growing digital economy.

Anshul Jain, Regional Managing Director for India and Southeast Asia and Head of Office and Retail for APAC at Cushman & Wakefield, noted that Southeast Asia’s growth momentum is driven not only by investment demand but also by expanding consumption, a young workforce, and the region’s ambitious infrastructure development agenda.

Overall, Southeast Asia’s economy is projected to grow by 4.3% in 2026, maintaining its position as one of the fastest-growing regions globally. Total personal consumption in Southeast Asia (excluding Singapore) is expected to reach 5 trillion USD by 2035, growing at an annual rate of around 8%.

Amid easing inflation, a downward trend in policy interest rates, and a generally stable unemployment rate across major economies, the improving financial conditions are expected to support broader investment deployment.