Buying real estate in Vietnam?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

What is the average rental yield in Ho Chi Minh City?

Last updated on 

Authored by the expert who managed and guided the team behind the Vietnam Property Pack

property investment Ho Chi Minh City

Yes, the analysis of Ho Chi Minh City's property market is included in our pack

Ho Chi Minh City rental yields currently range from 3% to 7% depending on property type and location, with studios and small condos offering the highest returns at 5-7%. As of September 2025, the market has experienced yield compression due to rapid property price growth, but still outperforms other major Southeast Asian cities like Bangkok and Jakarta.

If you want to go deeper, you can check our pack of documents related to the real estate market in Ho Chi Minh City, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At BambooRoutes, we explore the Vietnamese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Ho Chi Minh City, Hanoi, and Da Nang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current rental yields for different property types in Ho Chi Minh City?

As of September 2025, Ho Chi Minh City rental yields vary significantly by property type and location.

Condominiums deliver gross yields averaging 3-6% across the city, with performance heavily dependent on unit size and district. Studios and one-bedroom units consistently outperform larger properties, generating yields between 5-7% due to strong demand from young professionals and expatriates.

Villas and townhouses show yields ranging from 3% up to 7%, though most established properties in prime districts like District 2, District 7, and Binh Thanh typically generate 3-5% returns. Some emerging areas advertise yields as high as 8-20%, but these represent speculative investments with higher risk profiles that mainstream investors should approach cautiously.

Houses fall within the 3-5% range in established neighborhoods, while townhouses typically deliver 4-6% yields in central areas, with outer districts potentially reaching the upper end of this range.

It's something we develop in our Vietnam property pack.

How do rental yields differ across Ho Chi Minh City's districts?

District location significantly impacts both property prices and rental yields in Ho Chi Minh City.

District 2, particularly areas like Thao Dien and Thu Thiem, commands property prices of $3,200-6,500 per square meter while delivering yields of 4-6%. These areas attract expatriate families and international professionals, ensuring high liquidity and stable demand.

District 7's Phu My Hung area shows property prices of $2,800-4,500 per square meter with yields of 3-5%. This district appeals primarily to families and expatriates seeking established infrastructure and international schools.

Thu Duc City (formerly District 9) offers more affordable entry points at $1,800-3,200 per square meter, generating yields of 3-6%. The area attracts young professionals and students, though liquidity remains moderate compared to central districts.

Binh Thanh district, home to Landmark 81, shows prices of $2,500-5,000 per square meter with yields of 4-7%. This area benefits from excellent connectivity and mixed tenant profiles including expatriates and local professionals.

What rental yields can you expect based on property size?

Property size inversely correlates with rental yield performance in Ho Chi Minh City's market.

Studios and one-bedroom apartments generate the highest gross yields, reaching up to 7% in prime locations. These smaller units prove most cost-effective for rental investors due to consistent demand from single professionals, expatriates, and students who prioritize location over space.

Two to three-bedroom apartments deliver moderate yields of 3-5%, benefiting from longer tenant stays but showing reduced relative performance compared to smaller units. These properties attract small families and professional couples willing to pay for additional space.

Large apartments, townhouses, and villas typically yield 3-4% due to limited demand except in luxury expatriate areas or specialized serviced villa segments. The higher purchase prices and smaller tenant pool for these properties compress yields despite premium rental rates.

Medium-sized properties in the 2-3 bedroom range often represent the sweet spot for investors seeking balance between yield and tenant stability, though absolute returns favor smaller units.

How do purchase costs and taxes affect your actual rental yield?

Cost Category Rate/Amount Impact on Investment
VAT 5-10% of property value Significant upfront cost
Registration/Stamp Duty 0.5% of property value One-time transaction cost
Maintenance Fund 2% of price before VAT Upfront apartment cost
Annual Management Fees VND 8,000-120,000/sqm/month Ongoing operational expense
Land Tax 0.03-0.15% annually Annual holding cost
Rental Income Tax 10% (5% VAT + 5% PIT) Reduces net rental income
Brokerage Fee ~2% of sale price Transaction cost

After accounting for all taxes, fees, and ongoing costs, actual net yields typically drop by 1-1.5% from gross yields. This means mainstream apartments generally deliver net yields of 2-5%, depending on location and management efficiency.

What impact do mortgage rates have on investment returns?

Current mortgage rates significantly affect leveraged investment returns in Ho Chi Minh City.

State-owned banks offer fixed rates of 5-7% during promotional periods, but these typically convert to floating rates of 9.5-11.5% after the initial term. Private banks often charge 10-12% or higher for foreign buyers, making financing expensive for international investors.

Short-term promotional rates lasting 3-5 years provide temporary relief, but long-term effective interest rates substantially reduce net returns. Highly leveraged investors often see actual returns drop below 3% after debt service, unless properties appreciate rapidly or generate exceptional yields.

For cash buyers, the 3-7% gross yields provide more attractive absolute returns, while leveraged investors must carefully model debt service costs against projected rental income and appreciation.

Current mortgage market conditions favor conservative leverage ratios and focus on properties generating yields above 5% to maintain positive cash flow after financing costs.

Don't lose money on your property in Ho Chi Minh City

100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

investing in real estate in  Ho Chi Minh City

How do short-term rentals compare to long-term rentals for profitability?

Short-term and long-term rental strategies show distinct profitability profiles in Ho Chi Minh City.

Airbnb-style short-term rentals generate average annual revenues of approximately VND 197 million ($7,000), with average daily rates of $46 and occupancy rates around 51%. Well-managed listings in central districts can achieve gross yields of 8-12%, significantly outperforming traditional rentals.

However, short-term rentals face higher volatility, seasonal fluctuations (particularly strong in December), and increased regulatory risks. Management intensity and operational costs also reduce net profitability compared to gross yields.

Long-term rentals offer more stable returns with lower gross yields of 3-6% but higher occupancy rates. Grade A serviced apartments maintain approximately 85% occupancy, providing smoother cash flow and straightforward tax treatment.

Short-term rentals suit investors comfortable with active management and market volatility, while long-term rentals appeal to those prioritizing stable, passive income streams.

What are typical rental prices for different property types today?

Current rental prices in Ho Chi Minh City vary significantly by property type and location as of September 2025.

Studio and one-bedroom condos command $600-1,200 monthly in District 1 and District 2, $400-900 in District 7, and $300-600 in Binh Thanh. These price ranges reflect location premiums and unit quality differences.

Two to three-bedroom condominiums rent for $700-1,700 monthly in central districts, with premium developments commanding higher rates. Family-sized units benefit from longer lease terms but face more limited demand compared to smaller units.

Townhouses typically rent for $1,500-2,000 monthly in central areas, appealing to families and small businesses requiring additional space and privacy.

Whole houses and villas show the widest price range, from $1,100-3,000 citywide, with premium properties in District 1 and District 2 reaching $2,800-4,500 monthly. These properties serve high-end expatriate families and executives.

Who are the main tenants in Ho Chi Minh City's rental market?

Ho Chi Minh City's rental market serves diverse tenant profiles with distinct preferences and requirements.

  1. Expatriate professionals from Russia, Korea, China, and Europe prefer serviced apartments and condominiums in Districts 2, 7, and Binh Thanh, with some families choosing villas in Thao Dien
  2. University students primarily seek studios and one-bedroom units in Binh Thanh and Thu Duc, prioritizing proximity to universities and affordability
  3. Local professionals favor 1-2 bedroom condos in Binh Thanh, District 1, District 4, or emerging areas with good public transportation connections
  4. Expatriate and local families typically rent larger apartments, townhouses, or villas, mainly in District 7 (Phu My Hung) and areas near international schools
  5. Corporate tenants and multinational companies often lease multiple units or entire buildings for executive housing programs

Understanding tenant profiles helps investors select appropriate property types and locations for optimal occupancy and rental rates.

infographics rental yields citiesHo Chi Minh City

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.

What are current vacancy rates across different areas and property types?

Vacancy rates in Ho Chi Minh City vary significantly by property quality, location, and management approach.

Grade A serviced apartments maintain approximately 85% occupancy rates in favored districts, translating to vacancy rates around 15%. These properties benefit from professional management, consistent marketing, and established tenant relationships.

Average citywide vacancy rates range from 10-15% for long-term rental stock, with higher vacancy rates observed in oversupplied new developments lacking proper market positioning or management.

Short-term rentals show seasonal occupancy patterns of 36-51% depending on location and time of year, with December typically showing peak performance due to holiday travel.

Non-serviced condominiums in emerging areas or buildings without proper amenities often experience higher vacancy rates, sometimes exceeding 20% due to limited tenant demand and marketing challenges.

What are the smartest property choices for stable yields and low risk?

For investors prioritizing stable yields with minimal risk, specific property types and locations offer optimal combinations.

  • Mid-range condos in District 2 (Thao Dien) provide excellent balance of yield and stability with established expatriate demand
  • Serviced apartments in District 7 (Phu My Hung) offer professional management and consistent family tenant base
  • One-bedroom units in Binh Thanh generate strong yields while maintaining broad tenant appeal
  • Small condos near metro stations in Thu Duc benefit from improving connectivity and young professional demand
  • Established apartment complexes with proven track records reduce operational risks and vacancy concerns

Investors should avoid speculative fringe projects, large luxury units outside high-occupancy expatriate districts, and projects with incomplete legal documentation or unclear ownership structures.

It's something we develop in our Vietnam property pack.

How have rental yields and prices changed over recent years?

Ho Chi Minh City's rental market has experienced significant yield compression over the past five years.

Rental yields have declined steadily from 4.02% in Q1 2023 to 3.83% in Q1 2024, and further to approximately 3.16% or lower by Q1 2025. This trend primarily results from surging property prices outpacing rental price growth.

Rental prices have increased sharply since 2020, with condominium rents rising 47% year-over-year in 2025 for new units. However, this rental growth has not kept pace with property price appreciation, compressing yields for new buyers.

Short-term rental revenues have shown more resilience, rising 4% year-over-year to July 2025, driven by tourism recovery and increased leisure travel demand.

The yield compression trend reflects market maturation, increased investor interest, and limited quality supply in prime locations, forcing investors to accept lower returns for market entry.

What's the forecast for yields and rents over the next 1, 5, and 10 years?

Ho Chi Minh City's rental market outlook shows continued evolution across different time horizons.

Over the next year, yields are projected to remain stable or decline slightly due to ongoing property price growth, while rents are forecast to increase 5-7% citywide as demand remains robust amid supply shortages.

The five-year outlook shows continued strong demand, but yield compression will persist unless rental growth significantly outpaces price inflation. Districts 2, 7, and emerging suburban areas like Thu Duc will attract new investment and development.

Looking ahead 10 years, metro line completion, new CBD development, and increased international investment flows will likely maintain Ho Chi Minh City's yield advantage over Bangkok (3-4.5%) and Jakarta (2.5-3.5%). However, rental growth will depend heavily on policy changes, tax adjustments, and overall macroeconomic health.

Long-term success will favor investors who establish positions in emerging growth corridors while maintaining focus on proven demand drivers like transportation connectivity and expatriate communities.

It's something we develop in our Vietnam property pack.

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.

Sources

  1. Global Property Guide - Vietnam Rental Yields
  2. High End Residences - Investment Tips Ho Chi Minh City
  3. Global Property Guide - Vietnam Price History
  4. Own Property Abroad - Vietnam House Price Trends
  5. BambooRoutes - Average House Price Ho Chi Minh City
  6. Vietnam Real Estate - Investment Guide
  7. Wise - Buying Property in Vietnam
  8. Achieve Real - Vietnam Property Taxes and Fees
  9. AirROI - Ho Chi Minh City Short-term Rental Report
  10. Viet Home Rental - Expat Rental Guide 2025