Buying a property in Vientiane: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Vientiane's property market is included in our pack

Thinking of investing in real estate in Vientiane? You're not alone!

Many people are drawn to Vientiane's laid-back charm and fantasize about owning a modern apartment or a traditional house there.

Is it a wise investment, though? Are property prices increasing in Vientiane? What is the current trend? Should I buy property in the city center or near the river? Are there any secret taxes? Which places offer rental yields exceeding 7%?

We've solved it for you.

The BambooRoutes team has extensively researched this market. Actually, we've gathered all our findings in a pack. Get it now.

In this article, we're happy to share useful information with you.

How's the real estate market in Vientiane?

Is the property market thriving or struggling? We'll find the answers through data analysis.

Property types

In Vientiane, you can find various types of properties available for sale.

These include apartments or condos that offer modern urban living with amenities, houses or villas providing more space and privacy, commercial properties like shops or offices for business ventures, and land for those looking to build their own custom properties.

Whether you're seeking a cozy apartment, a spacious house, a business space, or a piece of land to develop, Vientiane offers a range of property options to suit different preferences and needs.

Buying vs Renting

(If you're purchasing for personal use and not for renting)

Whether you've already made Vientiane your home or are considering it for the future, you might be contemplating whether it's better to buy or rent a property in the capital of Laos.

Without a doubt, it's better to buy if you want to invest in a long-term asset that can appreciate in value over time.

One data can help you make a decision - the property price-to-rent ratio. This helps you understand the connection between rental income and the property's current price in terms of years.

According to Numbeo, the property price-to-rent ratio in Vientiane is around 30.02, which is significantly above the world average.

This value shows that it would take you 30 long years of paying rents before you can own a property in Vientiane.

But, when you think about the costs of taking care of the home during those long years, along with taxes and additional charges, and also think about the large upfront payment that you could have invested and earned interest on, it turns out to be a not-so-great investment.

Property prices in Vientiane

On average, according to the last reported data from Lao Statistics Bureau, purchasing a property in Vientiane would cost you around $3,500 per square meter.

Obviously, there are big differences. An apartment in the city center of Vientiane might have a different price per square meter than a suburban house. You'll get a more detailed in our pack for buying property in Vientiane and in Laos.

To put things in perspective, it is 5.4 times less than the property prices in the center of New York.

Also, housing prices in Vientiane are 57% cheaper than in Tokyo.

The most expensive neighbourhoods in Vientiane are probably Wat Nak, Xaysettha, and Sikhottabong, while some of the cheapest areas are Dongpalan, Nongbone, and Km 4.

Trends

First and foremost, we have to acknowledge that Laos is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 75.5.

Don't overlook this while weighing the pros and cons of buying a property in Vientiane.

Besides that, if we look at the IMF's GDP forecasts, Laos's economy is expected to soar by 18.4% in the coming 5 years, resulting in an average GDP growth rate of 3.7%.

If you want to invest in real estate in Vientiane it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.

Also, in Laos, the average GDP per capita has changed by 5.3% over the last 5 years. It's a satisfactory number.

These are positive signals showing that property prices in Vientiane might increase in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Laos right now.

Buying property in Vientiane

Buying real estate in Vientiane can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Vientiane and in Laos.

Buying process

In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.

Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.

This is the step-by-step process to purchase a property in Vientiane:

1. Research Lao property laws and regulations.
2. Engage a licensed Vientiane-based real estate agent.
3. Identify suitable properties and verify land ownership documents (Nai Dok).
4. Conduct due diligence on land usage rights and infrastructure plans.
5. Negotiate the price and terms with the seller.
6. Draft a purchase agreement with a Vientiane-based lawyer.
7. Sign the agreement and pay a deposit (usually 10%).
8. Apply for approval from the Ministry of Home Affairs.
9. Obtain permission from the Bank of Laos for foreign fund transfer.
10. Complete the property transfer at the Vientiane land office.
11. Pay the remaining balance and transfer taxes (3% to 5%).
12. Register the property under your name at the Vientiane land office (Nakasathien).

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Laos.

Make a profitable investment in Vientiane

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Where to find a property

Explore these websites to discover properties in Vientiane:

• Rentsbuy - RentsBuy is a real estate brokerage website in Laos, offering property listings for rent and sale in various cities.
• Rent Laos - RentLaos is a platform for property rentals and sales in Laos, providing a wide range of houses and apartments for rent or sale.
• FazWaz - FazWaz is a leading real estate marketplace for property transactions in Laos.
• Immolaos - IMMOLAOS is a top real estate agency in Laos, offering luxury properties for rent and sale in Vientiane and across the country.
• Realestateinlaos.com - Realestateinlaos.com is a comprehensive platform for real estate in Laos, presenting properties for sale, rentals, commercial spaces, and businesses.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Laos.

What you can get

As mentioned before, the average price per sqm in Vientiane is $3,500. The cost of a one-bedroom property (60 sqm) is approximately $210,000, and a two-bedroom (85 sqm) would be around $298,000.

However, as you can guess, property prices will differ based on the attributes of the property and its specific location.

Expect property prices to be on the higher side in the premium areas of Vientiane. A house in Sisattanak could cost you about $660,000, and an apartment in Chanthabouly might be priced at $370,000.

Still, some spots are more wallet-friendly. You can come across a residence in Dongpalane for $350,000 or an apartment in a remote area that's priced at $60,000.

Find a more detailed price list in our full pack for buying property in Laos.

Common pitfalls

Here are the main pitfalls when buying property in Vientiane, Laos:

• Complex land tenure system, with potential disputes over traditional land rights.
• Restrictions on land ownership for foreigners, limiting property choices.
• Lack of transparent property market data, leading to uncertain valuations.
• Encroachment on public land affecting property boundaries.
• Risks of acquiring property in flood-prone areas during the monsoon season.
• Limited infrastructure development in certain neighborhoods.
• Lengthy and bureaucratic property registration processes.
• Potential challenges in repatriating funds after selling property due to foreign exchange controls.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Laos Property Pack

Living in Vientiane

Living in Vientiane is an enjoyable experience, with its friendly locals, diverse culture, and affordable cost of living, making it an ideal place to consider buying property.

Cost of living

The cost of living in Vientiane is generally lower than in other parts of the world. Prices for basic necessities such as food and transportation are quite affordable, while housing and entertainment may be slightly more expensive.

Here are some examples to better understand the cost of living in Vientiane, Laos:

• Lao-Lao (Laotian rice whiskey): $3 for a bottle at a local shop.
• Rent for a one-bedroom apartment in Sisaket neighborhood: $400/month.
• Tam mak hung (Lao green papaya salad) for two at a local eatery: $10.
• 1.5-liter bottle of Beerlao: $2 at a supermarket.
• Electricity bill for an 85m² apartment using Electricité du Laos: $40/month.
• Monthly membership at Champasak Fitness in Chanthabouly: $30.
• Ticket to a Lao movie at Major Cineplex in Vientiane Center: $5.
• Cup of iced Lao coffee at Joma Bakery Café: $1.5.

Neighbourhoods

We want to show information in a way that's easy for people to understand. So, we made a table that explains the different neighborhoods in Vientiane. For yields, prices and rents, check our property pack.

Life in Vientiane

Vientiane is the capital city of Laos and has a growing economy. It has seen a rise in foreign investment and is focusing on developing its infrastructure, manufacturing, and tourism sectors.

What expats usually like the most in Vientiane is the laid-back atmosphere and the abundance of delicious Lao cuisine. They also appreciate the city's natural beauty and the many opportunities for outdoor activities.

A good point for a property investor - Vientiane has a public bus system called Tuk-Tuk Vientiane.

Access to healthcare in Vientiane is generally good, with plenty of hospitals and clinics available.

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Renting out in Vientiane

This section is for you if you want to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Vientiane

According to the data reported by Wikipedia, the home ownership rate in Laos is 96%, which is very high.

It is probably a bit less in Vientiane which is quite different from the rest of the country.

If you decide to buy and rent out to long-term tenants, you should target expats, local professionals, and students. Short-term rental options could be travelers, business people, and those on vacation.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Vientiane are within the 3-4% range. It's low. A good rental yield is typically considered to be around 7% or higher (you might know it already).

Apartments in the central business district of Vientiane tend to give the best rental yields due to the high demand for rental accommodation in the area from expats and business travellers. Additionally, the limited availability of land in the city center drives up rental prices, leading to higher yields for investors.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Short-term

You could also decide to rent short-term to tourists visiting Vientiane for sightseeing or business travelers in town for conferences and meetings. International students attending universities in Vientiane could also be potential tenants.

If you decide to go with that option, look for properties in the Thongkhankham and Xaysettha districts, as they are popular areas for short-term renters. Additionally, properties closer to the Mekong River tend to be popular for short-term rentals.

There are approximately 315 active Airbnb listings in Vientiane, reflecting a dynamic short-term rental market. The average daily rate is at $44.

You have the opportunity to generate some additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Vientiane can make around $300 per month. Also, the average occupancy rate is estimated at 40%.

Is it worth buying real estate in Vientiane then?

Buying a property in Vientiane boils down to two key considerations: long-term commitment and investment goals.

If you're planning to settle in Vientiane for the foreseeable future, purchasing a property makes sense. It provides stability and eliminates the uncertainty of rising rental costs. Moreover, Vientiane's stable economy and positive economic forecasts suggest that property values may appreciate, making it a wise investment choice.

The high property price-to-rent ratio in the city further supports buying, as it indicates that renting may not be cost-effective over the long run. If you're seeking rental income, targeting expats, professionals, or students can provide a steady source of revenue, despite relatively low rental yields.

However, if you're looking for a short-term stay or high rental yields, buying property in Vientiane may not be the best option. The complex land tenure system, restrictions on foreign land ownership, and lack of transparent market data can pose significant challenges. The bureaucratic property registration process can also be time-consuming and frustrating.

Additionally, if you're not prepared to deal with potential property disputes and uncertain valuations, it's advisable to explore other investment avenues.

In a nutshell, while buying property in Vientiane can be a smart move for those committed to the long haul and seeking stability, it may not align with short-term plans or income-focused strategies due to the unique challenges and lower rental yields in the city.

Make sure you understand the real estate market in Vientiane

Don't rush into buying the wrong property in Laos. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.