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Everything you need to know before buying real estate is included in our Vietnam Property Pack
Vietnam's property market has experienced explosive growth over the past year, with major cities seeing price increases of 24-36%.
New legal reforms and infrastructure investments are creating significant opportunities for both residential and investment buyers, though timing and location choices will be crucial for maximizing returns in this rapidly evolving market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Vietnam, based on reliable facts and data, not opinions or rumors.
Vietnam's property market offers strong growth potential with Hanoi leading at 36% price increases and new legal reforms improving foreign ownership access.
Da Nang provides the best rental yields at 4.58-5.73%, while secondary cities like Binh Duong and Hai Phong offer excellent value with lower entry costs and strong appreciation potential.
| Market Aspect | Current Status | Investment Recommendation |
|---|---|---|
| Price Growth (12 months) | 24-36% in major cities | Buy now before further increases |
| Best Growth Areas | Hanoi, Eastern/Northern districts | Strong long-term potential |
| Highest Rental Yields | Da Nang: 4.58-5.73% | Excellent for buy-to-let |
| Entry Level Budget | $50-150k secondary, $75-250k urban | Accessible for most investors |
| Foreign Ownership | 30% quota, 50-year leasehold | Now allows resale between foreigners |
| Short-term Outlook | 10-15% annual growth expected | Sustainable appreciation ahead |
| Best Investment Cities | Da Nang, Binh Duong, Hai Phong | Lower costs, higher yields |
What's the current trend of property prices in Vietnam over the past 12 months, and how are they projected in the short term?
Vietnam's property market has experienced remarkable price growth over the past 12 months, with major cities leading the surge.
Hanoi recorded the highest price increases with new apartment prices rising 36% year-on-year, while Ho Chi Minh City saw a 24% increase for new projects. The national average price increase reached approximately 30% due to limited supply meeting robust demand from both domestic and international buyers.
Luxury and landed homes in Hanoi performed even better, with high-demand prime districts seeing price climbs of 40-70%. Provincial and satellite cities around major hubs also experienced double-digit growth while remaining more affordable than urban centers.
As of September 2025, short-term projections indicate prices will continue rising at a more sustainable rate of 10-15% per year as new supply gradually comes online and legal reforms take effect. Hanoi is expected to outperform Ho Chi Minh City with projected growth of up to 15-20% in 2026.
It's something we develop in our Vietnam property pack.
How do medium-term and long-term forecasts differ for Vietnam's property market?
The medium-term and long-term forecasts for Vietnam's property market show strong continued growth but at varying rates across different timeframes.
For the medium-term period of 3-5 years, continued urbanization, infrastructure expansion, and strong foreign direct investment (FDI) inflows support projections of 50-75% cumulative price growth through 2030. This growth will be driven by ongoing development of transport networks, commercial infrastructure, and master-planned townships in major urban areas.
The long-term outlook spanning 10+ years remains positive with major regional and infrastructure projects set to sustain significant appreciation. However, market normalization is expected as Vietnam's property market matures and reaches regional peer levels. Growth rates will likely moderate from current explosive levels to more sustainable single-digit annual increases.
Regional divergence will become more pronounced over time, with tier-1 cities like Hanoi and Ho Chi Minh City seeing slower but steadier growth, while secondary cities and developing areas maintain higher appreciation potential due to their lower starting points and ongoing infrastructure investments.
Which areas in Vietnam are seeing the highest price growth, and which ones remain undervalued?
The highest price growth is concentrated in specific regions with strong infrastructure development and commercial expansion.
Hanoi's eastern and northern districts are experiencing the most dramatic price appreciation, benefiting from new transport links and commercial infrastructure development. These areas have seen some of the 40-70% price surges in prime residential segments. Satellite towns around Hanoi have also performed exceptionally well due to their proximity to the capital and improved connectivity.
Ho Chi Minh City's developing districts, particularly D2 and D7, continue to see strong growth driven by master-planned developments and urban expansion. Areas with new metro connectivity and commercial projects command premium pricing.
The most undervalued markets offer significant appreciation potential with lower entry points. Secondary cities like Hai Phong and Binh Duong are 36-50% less expensive than urban cores while having robust infrastructure investments underway. Da Nang also presents excellent value with strong tourism fundamentals and lower pricing compared to major cities.
These undervalued areas offer attractive rental yields and entry points for investors while maintaining strong fundamentals for long-term appreciation.
What types of property are performing best right now?
Different property types are showing varying performance levels based on demand patterns and market dynamics.
High-end apartments and new condos in central districts command premium prices, but affordable and mid-market units are experiencing the strongest demand-driven growth, particularly in developing neighborhoods. These properties benefit from broader market accessibility and strong end-user demand.
Landed houses and villas, especially in Hanoi and fast-urbanizing surrounding areas, have experienced standout price surges due to their scarcity and appeal to affluent buyers. These properties have seen some of the most dramatic price appreciations in the current market cycle.
Commercial and hospitality real estate is rebounding strongly, particularly in tourism-linked secondary cities like Da Nang and Nha Trang. These properties benefit from Vietnam's growing tourism sector and improving international connectivity.
Master-planned township developments across all major regions are delivering strong performance due to their comprehensive amenities and future appreciation potential. These projects typically offer better community value and lifestyle amenities compared to standalone properties.
How does rental yield compare across major cities and what are the opportunities?
| City | City Centre Yield | Outside Centre Yield | Investment Appeal |
|---|---|---|---|
| Ho Chi Minh City | 3.01% | 3.52% | High demand, premium pricing |
| Hanoi | 3.09% | 3.96% | Better yields outside CBD |
| Da Nang | 4.58% | 5.73% | Highest yields, tourism growth |
| Binh Duong | 4.7% | 6-7.5% | Record yields for new projects |
| Hai Phong | 3-5% | 5-6% | Lower costs, rising demand |
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What is the average time properties stay on the market before being sold?
Property market velocity varies significantly across regions and property types in Vietnam's current market conditions.
In Hanoi and Ho Chi Minh City, new units in popular developments can move quickly due to high demand and limited supply. Well-priced mid-market properties in good locations typically sell within 2-4 months. However, luxury and high-end projects may face longer periods on the market due to affordability constraints and smaller buyer pools.
Secondary cities like Da Nang, Hai Phong, and Binh Duong generally see faster turnover for reasonably priced properties, often selling within 1-3 months due to lower competition and strong local demand. Properties in these markets benefit from more realistic pricing relative to local income levels.
The time on market is also influenced by property condition, pricing strategy, and location within each city. Properties near transport links, schools, and commercial centers tend to sell faster regardless of the city.
Foreign-targeted properties may take longer to sell due to the smaller buyer pool, but recent legal reforms allowing resale between foreigners are expected to improve liquidity in this segment.
How much initial budget is typically required for different property segments?
Entry budgets vary significantly based on location and property type, offering options for different investment levels.
Entry-level properties require $50,000-150,000 in secondary cities like Hai Phong, Binh Duong, and smaller provincial centers. In urban centers like Hanoi and Ho Chi Minh City, entry-level budgets range from $75,000-250,000 for basic apartments or smaller units in developing districts.
Mid-range properties typically require $150,000-400,000 for larger condos or small landed homes. This segment offers good value with better locations, amenities, and appreciation potential. Many international buyers focus on this range for its balance of affordability and quality.
Luxury properties start from $400,000 and can exceed $1.5 million in prime districts or resort locations. These properties offer premium locations, high-end finishes, and exclusive amenities but require substantial capital and target a smaller buyer pool.
Additional costs including taxes, legal fees, and transfer costs typically add 5-10% to the purchase price depending on the property value and location.
What are the key risks in the short term that could affect property value or liquidity?
Several short-term risks could impact Vietnam's property market performance and investor returns.
An imbalance between luxury oversupply and affordable housing shortage poses the most immediate risk. Many developers have focused on high-end projects while affordable housing remains scarce, potentially leading to price corrections in the luxury segment.
Macroeconomic volatility including changes in foreign direct investment flows, exchange rate fluctuations, and global interest rate movements could dampen liquidity and investment appetite. Vietnam's economy remains sensitive to global economic conditions and trade relationships.
Policy implementation lags represent another significant risk. Slow implementation of new laws or administrative backlogs may delay new project launches and impact transaction timelines, affecting market momentum.
High leverage among developers and pending debt maturities could trigger distress sales in some segments if financing conditions tighten. This could create buying opportunities but also market volatility.
It's something we develop in our Vietnam property pack.
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 government policies, taxes, or regulations should buyers consider when investing now?
Recent and upcoming policy changes significantly impact property investment strategies and costs in Vietnam.
The new Land Law, Housing Law, and Real Estate Business Law implemented in 2024-2025 enhance buyer transparency, clarify foreign ownership rules, and allow resale between foreigners, substantially increasing market liquidity. These reforms address long-standing concerns about property rights and exit strategies for international investors.
VAT and Corporate Income Tax reforms taking effect in 2025 include stricter VAT deduction rules, new e-commerce tax regulations for foreign investors, and preferential zones for high-tech and industrial developments. Buyers should factor these changes into their investment calculations.
A proposed progressive sales tax could range from 2-10% depending on holding period, significantly impacting quick resale strategies. This policy aims to discourage speculation while rewarding long-term ownership.
Personal income tax on property sales may increase to up to 20% on profit, or a stepped flat rate if original purchase price verification is unavailable. Proper documentation and record-keeping become crucial for tax optimization.
How does foreign ownership work in Vietnam, and what are the limitations?
Foreign property ownership in Vietnam operates under specific rules that have recently become more favorable for international investors.
Foreigners can buy condos and houses (but not land) through 50-year leaseholds that are renewable, subject to a 30% project quota limit and geographical security restrictions. This system provides substantial ownership rights while maintaining Vietnamese sovereignty over land.
A significant recent improvement allows resale between foreigners, which previously was prohibited. This change eliminates a major exit risk and makes Vietnamese property investment much more attractive to international buyers by improving liquidity.
All purchases must be within government-approved projects and outside national security zones. Buyers should verify project approval status and location restrictions before committing to any purchase.
The 30% foreign ownership quota applies to each individual project, not to entire buildings or developments. Popular projects may reach this quota quickly, so timing can be crucial for securing desirable units.
For someone buying to live, what areas currently offer the best balance of price, lifestyle, and infrastructure?
Several areas provide excellent quality of life while offering reasonable property prices and strong infrastructure.
Emerging Hanoi districts in the east and north offer modern infrastructure, improving transport links, and competitive pricing compared to central areas. These districts provide good access to the city center while offering more space and value for money.
Ho Chi Minh City's Districts 2 and 7 feature master-planned developments with comprehensive amenities, international schools, and modern infrastructure. These areas attract expatriate families and offer a high standard of living with good connectivity to business districts.
Da Nang's beachfront areas combine lifestyle appeal with reasonable property prices, excellent infrastructure, and a growing expatriate community. The city offers a more relaxed pace of life while maintaining good connectivity and amenities.
Hai Phong presents an excellent value proposition with lower living costs, improving infrastructure, and proximity to Hanoi for business connectivity. The city offers good schools, healthcare, and lifestyle amenities at significantly lower costs than major cities.
It's something we develop in our Vietnam property pack.
For someone buying to rent out or resell, where are the strongest opportunities for positioning now?
Investment-focused buyers should target areas with strong rental yields and appreciation potential.
1. **Da Nang** offers the highest rental yields at 4.58-5.73% combined with growing tourism demand and expanding international connectivity. The city benefits from strong fundamentals for both rental income and capital appreciation.2. **Binh Duong** provides exceptional rental yields of 4.7-7.5% for new projects, along with significant industrial growth and proximity to Ho Chi Minh City. Lower property prices create excellent entry opportunities.3. **Satellite regions around Hanoi and Ho Chi Minh City** are poised for long-term growth due to ongoing infrastructure expansion and urban sprawl. These areas offer lower entry costs with strong appreciation potential.4. **Hai Phong** combines reasonable rental yields of 3-5% with lower property prices and growing industrial development. The city's proximity to Hanoi provides additional demand drivers.5. **Secondary resort cities like Nha Trang** offer lower price bases with increasing tourism infrastructure and international flight connectivity, creating opportunities for both rental income and appreciation.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.
Vietnam's property market presents compelling opportunities for both residential and investment buyers as of September 2025.
With strong fundamentals, improving legal frameworks, and attractive entry points in secondary cities, the market offers excellent potential for those who choose locations and timing carefully.
Sources
- Global Property Guide - Vietnam Price History
- BambooRoutes - Vietnam Price Forecasts
- InvestVietnam - Property Market Analysis 2025
- MP Holdings - Vietnam Real Estate Market 2025
- Vietnam Briefing - Real Estate Investment Destination
- Own Property Abroad - Vietnam Rental Yields
- BambooRoutes - Hai Phong Property Market
- InvestVietnam - Foreign Property Ownership Guide
- Acclime Vietnam - Tax Updates 2025
- Vietnam Law Magazine - Real Estate Sales Tax