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Hai Phong offers rental yields between 3.2% and 5.0% annually, making it one of Vietnam's most attractive cities for property investment. The city's strategic location as a major port and industrial hub drives consistent rental demand from expatriates, FDI workers, and young professionals.
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Hai Phong's rental market offers yields of 3.2-5.0% annually, with apartments in central districts and near industrial zones performing best.
New developments and properties in growth districts like Thuy Nguyen and An Duong show the strongest investment potential for both rental income and capital appreciation.
| Property Type | Average Rental Yield | Best Districts |
|---|---|---|
| Central Apartments | 4.0-5.0% | Hong Bang, Lach Tray |
| New Development Apartments | 3.8-4.5% | Vinh Niem, Le Chan |
| Villas/Townhouses | 3.5-4.2% | Hong Bang, Ngo Quyen |
| Industrial Zone Housing | 4.2-5.0% | Trang Cat, Kien An |
| Suburban Apartments | 3.2-3.8% | An Duong, Thuy Nguyen |
| Short-term Rentals | 5.0-6.0% | Cat Bi, Do Son |
| Commercial Units | 4.5-5.5% | Hong Bang, Lach Tray |
What are the main types of properties available for rent in Hai Phong?
Hai Phong's rental market offers five primary property types that cater to different tenant profiles and investment strategies.
Apartments represent the largest segment, including serviced apartments, new developments, and condominiums. These properties typically target expatriates and young professionals working in the city's growing industrial sector. Serviced apartments command premium rents due to their convenience and amenities.
Houses and townhouses form the second major category, appealing to families and long-term residents. These properties often provide more space and privacy compared to apartments, making them attractive to domestic families and expatriate families with children.
Villas constitute the luxury segment of Hai Phong's rental market, particularly popular among senior expatriates and executives. These properties typically feature private gardens, parking, and premium locations in central districts or near international facilities.
Commercial units including shops, retail spaces, and offices offer opportunities for business-focused rental income. Industrial zone housing represents a specialized niche, serving the growing number of foreign workers employed in Hai Phong's expanding manufacturing sector.
Which areas or neighborhoods in Hai Phong offer the best rental opportunities right now?
As of September 2025, several districts in Hai Phong provide exceptional rental investment opportunities driven by infrastructure development and economic growth.
Hong Bang district leads the market as the central business and cultural hub, experiencing significant urban renewal and price appreciation. Properties here command premium rents due to proximity to commercial centers, government offices, and cultural attractions.
Lach Tray district offers vibrant commercial activity with excellent connectivity to major transport hubs. The area's strategic location makes it highly attractive to business tenants and young professionals, supporting consistent rental demand and yield growth.
Trang Cat and Kien An districts benefit from their proximity to industrial zones, creating strong demand for worker accommodation. These areas show particularly robust yields for properties targeting FDI employees and industrial workers.
Vinh Niem district presents rapid infrastructure development and convenient access to the city center, making it increasingly popular among both domestic and international tenants. Le Chan district offers balanced supply with growing retail and commercial development, resulting in rising rental yields.
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How do rental yields differ between apartments, houses, villas, and commercial units?
Rental yields in Hai Phong vary significantly across property types, with industrial-focused properties generally delivering the highest returns.
| Property Type | Annual Yield Range | Key Factors |
|---|---|---|
| Apartments | 3.2-5.0% | Location, age, amenities |
| Houses/Townhouses | 3.5-4.2% | Size, district, condition |
| Villas | 3.5-4.2% | Luxury features, location premium |
| Commercial Units | 4.5-5.5% | Foot traffic, business district proximity |
| Industrial Housing | 4.2-5.0% | Worker demand, industrial zone proximity |
| Short-term Rentals | 5.0-6.0% | Tourism demand, management intensity |
| Waterfront Properties | 4.0-5.2% | Dual-use potential, premium location |
What are the average property prices in Hai Phong, including purchase fees and taxes?
Property prices in Hai Phong vary dramatically based on location and property type, with central areas commanding significant premiums over suburban locations.
Central district apartments average VND 45 million per square meter, while villas and townhouses in prime locations reach VND 49 million per square meter. These properties represent the premium segment of Hai Phong's market, attracting expatriates and affluent Vietnamese buyers.
Suburban apartments offer more affordable entry points at VND 12-15 million per square meter, making them attractive to first-time investors and domestic buyers. New project apartments typically price between VND 30-45 million per square meter, depending on developer reputation and amenities.
Land plots in developing districts like An Duong range from VND 12-40 million per square meter, offering potential for future development or long-term appreciation. Additional purchase costs include 10% VAT, approximately 2% for title transfer fees, notary and legal costs, and a proposed 20% personal income tax per transaction.
These additional costs can add 15-20% to the base property price, significantly impacting initial investment calculations and net rental yield projections.
What are the typical ongoing costs such as maintenance, management fees, and local taxes?
Ongoing property ownership costs in Hai Phong can substantially impact net rental yields and require careful budgeting for sustainable investment returns.
Maintenance fees typically represent 5-10% of the property's annual value for apartments and villas, covering regular upkeep, repairs, and building maintenance. These costs vary significantly based on property age, building quality, and included amenities like swimming pools or security services.
Management fees depend on building type and service level, with luxury developments charging premium rates for concierge services, security, and facility maintenance. Properties targeting expatriate tenants often require higher management standards, increasing associated costs.
Local taxes include property ownership tax and personal income tax on rental income, calculated based on property value and rental income levels. Utilities and repair costs represent additional monthly charges that can vary seasonally and based on tenant usage patterns.
Investors should budget approximately 15-25% of gross rental income for ongoing costs, with newer properties typically requiring lower maintenance expenditure than older buildings requiring renovation or significant repairs.
How do mortgage costs affect the net rental yield for an investor?
Mortgage financing significantly impacts net rental yields in Hai Phong, with current interest rates around 6% annually affecting investment profitability.
Net rental yields decrease substantially when accounting for interest costs, though robust yields remain achievable when leveraging below property appreciation rates and inflation. Investors using mortgage financing typically see net yields reduced by 2-3 percentage points compared to cash purchases.
The 6% mortgage rate means that properties must generate gross yields above this threshold to provide positive cash flow after financing costs. Combined with ongoing expenses, properties need gross yields of approximately 8-9% to achieve positive net returns with mortgage financing.
However, leveraged investments can still prove profitable when property appreciation exceeds mortgage costs, particularly in Hai Phong's growing market. The city's economic expansion and infrastructure development support capital appreciation that can supplement rental income returns.
Investors should carefully model financing costs against expected rental income and appreciation to determine optimal leverage levels for their investment strategy and risk tolerance.
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What are the average monthly rents for different property types and sizes?
Monthly rental rates in Hai Phong reflect the city's position as a growing industrial and commercial center, with significant variation based on property type and target tenant demographics.
Serviced apartments command the highest rents, with one-bedroom units ranging from $300-500 monthly (VND 7-12 million), targeting expatriate professionals and business travelers. These properties include utilities, cleaning services, and often business center access.
Standard apartments rent for $250-400 monthly (VND 6-10 million) for one to two-bedroom units, appealing to young professionals and small expatriate families. These properties typically require tenants to arrange their own utilities and services.
Villas represent the premium rental segment at $800-1,500 monthly (VND 18-34 million), attracting senior expatriates, diplomatic staff, and affluent Vietnamese families. Family houses offer more affordable options at $300-700 monthly, serving middle-class families and small expatriate households.
Commercial units vary widely based on location and use, often renting for $12-17 per square meter monthly in central areas. Industrial zone housing commands steady rents due to consistent worker demand from manufacturing facilities.
Who are the main renter profiles in Hai Phong and what are they looking for?
Hai Phong's rental market serves four distinct tenant segments, each with specific preferences and budget requirements.
Expatriates represent the premium segment, preferring central apartments and villas with proximity to international schools and workplaces. These tenants typically seek furnished properties with modern amenities, reliable internet, and western-style kitchens and bathrooms.
FDI workers form a large and growing segment, seeking affordable rentals near industrial zones and manufacturing facilities. These tenants prioritize cost-effectiveness, transportation links to work sites, and basic but reliable accommodations.
Young professionals increasingly favor new apartments or condos in urban areas with modern amenities, good internet connectivity, and proximity to entertainment and dining options. This segment drives demand for smaller, efficiently designed units with contemporary features.
Domestic families represent the traditional rental market, increasingly opting for suburban townhouses and affordable housing options. These tenants seek space for families, parking, and proximity to local schools and markets while maintaining reasonable commute times to city center employment.
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What are the typical vacancy rates by property type and area?
Vacancy rates in Hai Phong vary significantly across property types and districts, reflecting different demand patterns and market dynamics.
Grade A and B apartments show vacancy rates of approximately 18-21% as of Q4 2024, though these rates are gradually decreasing due to improving economic conditions and increased FDI activity. New developments initially experience higher vacancy rates before establishing tenant bases.
Industrial and commercial units near strong industrial zones maintain much lower vacancy rates due to consistent demand from manufacturing workers and businesses serving the industrial sector. These properties benefit from Hai Phong's position as a major manufacturing hub.
Central districts experience lower overall vacancy rates driven by sustained demand from expatriates, business travelers, and young professionals working in the city center. Hong Bang and Lach Tray districts particularly benefit from their commercial and administrative importance.
Suburban areas show mixed vacancy rates depending on infrastructure development and transportation connectivity. Districts with improved road links and planned development projects typically maintain lower vacancy rates than more remote locations.
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How do short-term rentals compare with long-term rentals in terms of yield and demand?
Short-term and long-term rental strategies in Hai Phong serve different market segments and offer distinct risk-return profiles for property investors.
Short-term rentals, particularly in areas like Cat Bi near the airport and Do Son beach, generate higher potential yields of 5.0-6.0% annually. These properties benefit from Hai Phong's 3.4 million annual tourists and business travelers, commanding premium daily rates during peak periods.
Long-term rentals provide stable, predictable returns with lower management requirements and consistent cash flow. These properties appeal to expatriate professionals, FDI workers, and domestic families seeking stable housing arrangements.
Short-term rental yields may exceed long-term alternatives by 1-2 percentage points, but require intensive management, higher marketing costs, and greater exposure to seasonal demand fluctuations. Properties must maintain higher service standards and frequent updating to compete effectively.
Location proves critical for short-term rental success, with properties near tourist attractions, business districts, and transportation hubs performing significantly better than residential areas. Long-term rentals offer more flexibility in location choice while maintaining steady income streams.
How have rents and yields changed compared to five years ago and compared to one year ago?
Hai Phong's rental market has experienced significant volatility over the past five years, with recent recovery following a challenging period in 2023.
Between 2020 and 2023, property prices dropped approximately 20-25% in some locations due to economic uncertainty and reduced foreign investment. This period challenged rental yields and property values across most market segments.
The 2024-2025 period shows strong recovery, with apartment prices increasing approximately 5% in Q2 compared to Q1 2024. Over the full five-year period, some properties have experienced 80-120% growth, particularly in developing districts with infrastructure improvements.
Rental yields have remained steady and are rising due to increased FDI activity and infrastructure upgrades supporting economic growth. The city's strategic position as a major port and manufacturing center continues attracting investment and workers.
Current yields of 3.2-5.0% compare favorably to historical levels and exceed many comparable Vietnamese cities. The recent infrastructure development and industrial expansion support optimistic projections for continued rental market strength.
What are the smartest property choices today, what yields can be expected in the next 1, 5, and 10 years, and how does Hai Phong compare with similar big cities?
Strategic property selection in Hai Phong should focus on locations benefiting from industrial expansion and infrastructure development for optimal long-term returns.
Landed houses in growth districts like Thuy Nguyen and An Duong offer the best long-term appreciation potential due to planned urban development and infrastructure improvements. These areas benefit from lower current prices with significant upside potential.
Villas and central district apartments provide strong lifestyle premiums and resale value, particularly appealing to expatriate and affluent Vietnamese buyers. Waterfront and gateway properties offer dual residential-commercial use potential with consistent yield generation.
Industrial zone housing maintains stable rental demand due to Hai Phong's continued manufacturing expansion and foreign investment growth. These properties benefit from consistent tenant demand and predictable income streams.
Yield outlook remains positive with current returns of 3.2-5.0% annually, with potential for 7-10% total annual returns including appreciation over the next five years if economic growth continues. Hai Phong compares favorably against Hanoi and Ho Chi Minh City, offering lower entry prices with similar or higher yields, making it an attractive alternative for property investors seeking emerging market opportunities.
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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.
Hai Phong's rental market offers compelling opportunities for property investors seeking emerging market exposure with attractive yields and capital appreciation potential.
The city's strategic industrial position and ongoing infrastructure development support positive long-term prospects for both rental income and property values.
Sources
- Hai Phong Real Estate Trends
- Hai Phong Price Forecasts
- Hai Phong Which Area
- Vietnam Law Magazine - Real Estate Sales Tax
- Property Maintenance Costs
- Vietnam Briefing - Tax Obligations
- Property Maintenance Fees Explained
- Cozy Cozy - Hai Phong Apartments
- Dot Property - Serviced Apartments
- Cost of Living - Hai Phong