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Da Nang's rental market offers yields ranging from 3.17% to 4.25%, with short-term rentals potentially reaching up to 12.3% during peak periods. The coastal city has become increasingly attractive to both investors and owner-occupiers, particularly as tourism recovers and international interest grows. Understanding the nuances of different property types, neighborhoods, and rental strategies is crucial for making informed investment decisions in this emerging market.
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Da Nang rental yields average 3.81% across all property types, with studios offering the highest returns at 5-7% and luxury beachfront units yielding 3-4%.
Short-term rentals significantly outperform long-term rentals, with Airbnb properties generating up to 12.3% yields compared to 3-5.7% for traditional leases.
| Property Type | Rental Yield Range | Monthly Rent (USD) |
|---|---|---|
| Studio Apartments | 5% - 7% | $230 - $375 |
| One-Bedroom Apartments | 4% - 6% | $310 - $625 |
| Two-Bedroom Apartments | 3.5% - 5% | $460 - $1,050 |
| Villas/Houses | 3% - 5.7% | $700 - $1,650+ |
| Townhouses | 4% - 6% | $600 - $1,200 |
| Luxury Beachfront | 3% - 4% | $800 - $2,000+ |
| Short-term Rentals (Airbnb) | Up to 12.3% | $42-45/night (ADR) |
What are the current rental yields across different Da Nang neighborhoods?
As of September 2025, Da Nang rental yields range from 3.17% to 4.25%, with an overall city average of 3.81%.
The highest yields are found in suburban areas like Ngu Hanh Son district, where family demand and better affordability drive stronger returns. These areas benefit from growing expat communities and families seeking larger living spaces at reasonable prices.
Central districts including Hai Chau maintain solid yields around 3.5% to 4%, particularly for properties targeting tourists and short-term visitors. Son Tra district, known for its beachfront locations, sees yields in the 3.8% to 4.2% range due to consistent tourism demand and limited coastal supply.
Ngu Hanh Son district offers some of the most attractive yields at 4% to 4.25%, driven by its proximity to both the beach and the city center, making it popular among long-term expatriate residents and Vietnamese families.
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How do rental yields compare between different property types?
Studio apartments deliver the highest rental yields in Da Nang, typically ranging from 5% to 7%.
Regular apartments generate yields between 2.34% and 3.62%, with an average of 3.06%. These properties attract couples, young professionals, and short-term residents, but their higher purchase prices relative to rental income result in more modest returns.
Villas and houses offer yields from 3% to 5.7%, with larger properties generally achieving lower yields due to higher acquisition costs. However, these properties often provide more stable tenant relationships and longer lease agreements.
Townhouses perform particularly well with yields ranging from 4% to 6%, striking a balance between purchase price and rental potential. They're especially popular among expatriate families and Vietnamese professionals seeking more space.
Luxury beachfront units yield 3% to 4%, reflecting their premium purchase prices but steady demand from high-end tourists and affluent long-term residents.
What rental yields can you expect based on property size?
Studio apartments consistently deliver the strongest yields at 5% to 7%, making them the most profitable investment option per dollar invested.
One-bedroom properties typically achieve yields between 4% and 6%. These units attract digital nomads, young couples, and single professionals, providing a good balance of rental income and manageable purchase costs.
Two-bedroom apartments and larger family homes generally see yields from 3% to 5.7%. While the absolute rental income is higher, the significantly larger purchase prices reduce the overall yield percentage.
Three-bedroom and larger properties yield 3% to 5%, with the lower end of this range applying to premium family homes. These properties attract stable, long-term tenants but require substantially higher initial investments.
The yield advantage of smaller properties reflects Da Nang's strong demand from young professionals, digital nomads, and tourists who prefer compact, well-located accommodations over larger spaces.
What are the total costs of buying property in Da Nang?
| Cost Type | Rate/Amount | Notes |
|---|---|---|
| VAT (Social Housing) | 5% | Applied to qualifying social housing units |
| VAT (Commercial Housing) | 10% | Standard rate for most property purchases |
| Registration Fee | 0.5% | For land and property registration |
| Maintenance/Service Fee | 2% of property value | Often paid upfront at purchase |
| Ongoing Management | 8-12% of rental income | For overseas investors using property management |
| Notary Fees | Variable | Generally minor compared to other costs |
| Ownership Restrictions | 30% of condo units, 10% of villas | Maximum foreign ownership percentages |
How do mortgage rates impact your net rental yield?
Current mortgage rates in Vietnam range from 5.2% to 5.6% for 3-year fixed terms, with loan periods extending up to 40 years.
For properties with gross yields below 4%, financing costs can significantly erode returns. An investor borrowing at 5.4% on a property yielding 3.5% gross may see net yields drop to just 1-2% annually after accounting for interest payments and vacancy periods.
Properties with higher gross yields, such as studios yielding 6-7%, can still generate attractive net returns of 3-4% even after mortgage costs. Short-term rental properties with yields up to 12.3% remain highly profitable even with financing.
The loan-to-value ratio significantly impacts net returns. Investors using 70% financing on a 4% yield property might achieve 2.5% net returns, while cash buyers enjoy the full gross yield minus operating expenses.
Foreign investors should factor in currency risk and potential restrictions on loan availability, as Vietnamese banks typically require substantial down payments and proof of income from foreign borrowers.
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What rental prices can you expect for different property types in 2025?
Studio apartments in Da Nang rent for $230 to $375 per month, with prime locations and modern amenities commanding the higher end of this range.
One-bedroom apartments typically rent between $310 and $625 monthly. Properties in Hai Chau district or near the beach generally achieve rents toward the upper range, while suburban locations offer more affordable options.
Two-bedroom apartments command $460 to $1,050 per month, depending on location, building quality, and amenities. Family-oriented developments with pools, gyms, and security services achieve premium rents.
Larger family homes and villas rent from $700 to $1,650 or more monthly. Beachfront villas and luxury properties in Son Tra can exceed $2,000 per month, particularly for short-term high-end rentals.
These rental ranges reflect September 2025 market conditions, with premium buildings and prime locations consistently outperforming average market rates by 20-30%.
What types of tenants rent properties in Da Nang?
Long-term renters in Da Nang primarily consist of expatriate families, digital nomads, and working professionals, with significant numbers from South Korea, China, and Western countries.
Digital nomads and remote workers favor properties with reliable fiber internet, modern amenities, security features, and access to pools or fitness facilities. They typically seek 6-12 month leases and are willing to pay premium rents for quality accommodations.
Expatriate families prefer larger properties in safe neighborhoods with good schools nearby. They often sign longer leases of 1-2 years and value properties with parking, outdoor space, and family-friendly amenities.
Short-term rental guests are overwhelmingly international tourists, with 91.95% of Airbnb guests coming from abroad. The largest groups are from South Korea, China, and Australia, seeking beachfront or centrally located properties for vacation stays.
Vietnamese professionals and students also contribute to rental demand, particularly for smaller apartments and studios in areas with good transportation links to business districts and universities.
What are the vacancy rates across different property types?
As of September 2025, apartment vacancy rates in Da Nang average 5.0%, which aligns with historical norms and indicates a balanced rental market.
Short-term rental properties maintain average occupancy rates of 59% to 62%, with significant seasonal variation. Peak tourist months see occupancy rates exceeding 80%, while slower periods may drop to 40-50%.
Son Tra and Ngu Hanh Son districts experience lower vacancy rates due to their coastal locations and popularity among both tourists and long-term expatriate residents. These areas benefit from consistent demand throughout the year.
Suburban areas face slightly higher vacancy risks, particularly in areas with new oversupply. Some suburban developments report vacancy rates of 6-8% as the market absorbs recent construction completions.
Premium properties with modern amenities, good management, and prime locations typically maintain vacancy rates below 3%, while older or poorly located properties may struggle with rates above 7-10%.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do short-term and long-term rental strategies compare?
Short-term rentals through platforms like Airbnb can achieve yields up to 12.3% during peak periods, significantly outperforming long-term rentals.
Airbnb properties in Da Nang average $42 to $45 per night, with annual revenues typically ranging from $9,000 to $10,077 per listing. The average occupancy rate sits between 61% and 62%, with strong seasonal peaks during Vietnamese holidays and international tourist seasons.
Long-term rentals offer more predictable returns with yields ranging from 3% to 5.7%. These properties require less hands-on management, face lower vacancy risks, and provide steadier cash flow throughout the year.
Short-term rentals demand significantly more management effort, including guest communication, cleaning coordination, and property maintenance. Management costs typically run 15-25% of gross income compared to 8-12% for long-term rentals.
The choice between strategies often depends on investor involvement level and risk tolerance. Short-term rentals suit hands-on investors or those using professional management services, while long-term rentals work better for passive investors seeking steady returns.
How have rental yields changed over the past five years?
Da Nang rental yields have remained relatively stable compared to other Vietnamese cities, even as national averages declined from 3.91% in Q1 2024 to 3.26% in Q1 2025.
Property prices have increased 3% to 7% annually over the past five years, while rental rates have grown at similar or slightly higher rates in tourist-dependent areas. Land prices in central districts have surged approximately 20% year-over-year.
Short-term rental yields have improved significantly as tourism recovered post-pandemic. Occupancy rates and average daily rates have both increased, with some properties seeing yield improvements of 2-3 percentage points since 2023.
The supply side has seen dramatic changes, with new launches increasing 2.5 times compared to previous years. This increased supply has created competitive pricing pressure in some segments while supporting overall market growth.
Suburban areas have benefited from growing expatriate communities and improved infrastructure, with yields in districts like Ngu Hanh Son showing steady improvement over the five-year period.
What is the forecast for Da Nang rental yields?
One-year outlook suggests modest yield growth of 2% to 3% as tourism continues recovering and international visitor numbers increase toward the projected 11.9 million total visitors in 2026.
Short-term rental yields are expected to strengthen further as Da Nang attracts more international tourists. The city's growing reputation as a digital nomad destination should support both short and medium-term rental demand.
Five-year projections indicate continued market growth driven by infrastructure investments and smart city initiatives. Suburban yields may stabilize or decline slightly by 2030 due to increased supply, while urban coastal and premium properties should outperform.
Ten-year forecasts remain strongly positive as Da Nang positions itself as a major Southeast Asian destination. Smart city developments, digital infrastructure improvements, and eco-city projects should attract high-income earners and foreign investors.
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How do Da Nang yields compare to other regional coastal cities?
Da Nang's average yields of 3.81% to 4.25% position it competitively among Southeast Asian coastal destinations, though below some regional peers.
Cebu City in the Philippines offers significantly higher yields around 12%, while Bali typically generates approximately 10% yields. These higher yields often reflect lower property purchase prices and different foreign ownership regulations.
Within Vietnam, Da Nang's yields compare favorably to Ho Chi Minh City and Hanoi, where prime properties often yield 2-3%. Da Nang benefits from lower purchase prices per square meter while maintaining strong rental demand.
The city's price appreciation potential remains strong, with central and coastal areas showing growth patterns that narrow the gap with Vietnam's primary cities. This combination of yield and capital appreciation makes Da Nang attractive for balanced investment strategies.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Da Nang's rental market offers compelling opportunities for both yield-focused and growth-oriented investors, with short-term rentals providing exceptional returns for active managers.
The combination of recovering tourism, growing expatriate communities, and ongoing infrastructure development positions the city for continued rental market strength over the coming decade.
Sources
- Da Nang Real Estate Forecasts
- Da Nang Price Forecasts
- Da Nang Property
- Global Property Guide - Vietnam Price History
- House Rental Da Nang
- Wise - Buying Property in Vietnam
- Vietnam Real Estate FAQ
- LinkedIn - Da Nang Market Report
- Airbtics - Da Nang Airbnb Revenue
- Airbtics - Best Airbnb Markets Southeast Asia