Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Everything you need to know before buying real estate is included in our Vietnam Property Pack
Vietnam's rental yields vary significantly across major cities, with Ho Chi Minh City offering the highest returns at 3.7-4% as of September 2025.
Understanding which areas provide the best long-term rental prospects requires analyzing specific districts, price differentials, tenant demographics, and upcoming infrastructure developments that will shape the market over the next decade.
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.
Ho Chi Minh City delivers the strongest rental yields at 3.7-4%, outperforming Hanoi (3.1-3.4%) and Da Nang (3.17-3.3%).
Central districts in HCMC, particularly Districts 1, 2, 3, and 7, show the highest demand due to business hubs and expat communities.
| City | Average Rental Yield | Key Districts |
|---|---|---|
| Ho Chi Minh City | 3.7-4.0% | Districts 1, 2, 3, 7 |
| Hanoi | 3.1-3.4% | Ba Dinh, Hoan Kiem, Dong Da |
| Da Nang | 3.17-3.3% | Hai Chau, Son Tra, Ngu Hanh Son |
| Price Gap (Central vs Suburb) | 30-40% | Hanoi market differential |
| Occupancy Rate | 80-90% | All major cities |
| Management Fees | 1.5-2.5% | Of gross rental income |
| Tax Impact | 15% | 10% VAT + 5% income tax |
What are the current average rental yields for apartments in Ho Chi Minh City compared to Hanoi and Da Nang?
Ho Chi Minh City delivers the highest rental yields among Vietnam's major cities at 3.7-4% as of September 2025.
Hanoi follows with yields of 3.1-3.4%, while Da Nang offers returns of 3.17-3.3%. The gap between HCMC and other cities reflects stronger rental demand driven by the city's position as Vietnam's commercial capital.
These yields represent a significant decline from 2020 levels when most cities achieved 4.5-5%. The drop occurred because property prices surged by approximately 59% over five years, while rental rates increased at a much slower pace.
HCMC's advantage stems from its concentrated business activity, larger expat population, and higher rental rates that partially offset elevated purchase prices. The city maintains stronger year-round demand compared to Da Nang's tourism-dependent market.
It's something we develop in our Vietnam property pack.
Which districts in Ho Chi Minh City show the highest long-term rental demand and why?
District 1, District 2 (Thao Dien/Thu Thiem), District 3, and District 7 (Phu My Hung) generate the strongest long-term rental demand in Ho Chi Minh City.
District 1 attracts executives and professionals as Vietnam's primary financial and business hub. The area commands premium rents due to its concentration of multinational corporations, banks, and government offices.
District 2, particularly Thao Dien and Thu Thiem areas, serves as the preferred expat enclave with international schools, quieter residential environments, and upscale amenities. Foreign professionals with families gravitate toward this district for its international-standard housing and green spaces.
District 3 offers central location benefits without District 1's intense urban pressure, making it suitable for professionals and families seeking accessibility with more livable conditions. District 7's Phu My Hung development provides modern infrastructure, international-standard facilities, and expat-friendly services.
These districts maintain high occupancy rates because they combine proximity to employment centers, educational institutions, healthcare facilities, and international amenities that both local professionals and foreign residents prioritize.
How much does the average purchase price per square meter differ between central and suburban areas in Hanoi?
Central Hanoi areas command purchase prices exceeding VND 70 million per square meter ($2,650), while suburban developments average VND 60-70 million per square meter ($2,280-$2,650).
| Area Type | Price per sqm (VND) | Price per sqm (USD) |
|---|---|---|
| Central Districts (Ba Dinh, Hoan Kiem) | 70,000,000+ | $2,650+ |
| Semi-Central (Dong Da, Hai Ba Trung) | 65,000,000-70,000,000 | $2,460-$2,650 |
| Suburban New Projects | 60,000,000-65,000,000 | $2,280-$2,460 |
| Outer Districts (Gia Lam, Thach That) | 50,000,000-60,000,000 | $1,900-$2,280 |
| Satellite Cities | 40,000,000-50,000,000 | $1,520-$1,900 |
The price differential reaches 30-40% between prime central locations and suburban areas. Annual price growth in central districts has consistently outpaced suburban development, widening this gap over recent years.
Central areas maintain premium pricing due to government proximity, established infrastructure, cultural landmarks, and limited land availability for new development.
What are the typical monthly rental rates for one-bedroom and two-bedroom apartments in Da Nang?
One-bedroom apartments in Da Nang rent for VND 9-15 million monthly ($350-$600), while two-bedroom units command VND 17-30 million ($700-$1,200).
Premium locations in Hai Chau District, Son Tra Peninsula, and beachfront areas in Ngu Hanh Son District achieve the upper end of these ranges. Modern developments with international-standard amenities, swimming pools, and gym facilities typically command 20-30% higher rents.
Rental rates vary significantly by location within Da Nang. Central business district apartments near the Han River and Dragon Bridge achieve premium pricing, while units further from the coast or city center rent at the lower end of these ranges.
Seasonal fluctuations affect Da Nang rental rates, with peak tourist season (April-August) driving higher demand and rates, particularly for furnished units that can attract both long-term tenants and short-term visitors.
The city's growing reputation among digital nomads and expat retirees has stabilized year-round demand for quality apartments, supporting consistent rental income for property investors.
How have rental yields in Vietnam's main cities changed over the past five years?
Vietnam's rental yields dropped nearly one percentage point from 2020 to 2025, falling from 4.5-5% to current levels of 3.1-4% across major cities.
Ho Chi Minh City yields declined from 5.1% in 2023 to 3.7% in 2025, while Hanoi dropped from 4.9% to 3.4% over the same period. Da Nang experienced similar compression, falling from approximately 4.2% to 3.17-3.3%.
Property prices surged approximately 59% over five years, significantly outpacing rental growth which increased only 15-25% during the same period. This price-rent imbalance drove yield compression across all major markets.
The yield decline accelerated after 2022 when foreign investment resumed post-COVID and domestic demand strengthened, creating intense competition for quality properties. Government infrastructure spending and urban development projects further boosted property values.
Despite lower yields, steady rental demand growth and ongoing urbanization continue attracting investors who view Vietnam's property markets as offering better long-term prospects than many regional alternatives.
Don't lose money on your property in Vietnam
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.
What government regulations or ownership restrictions should foreign investors be aware of in Vietnam?
Foreign investors can purchase apartments in most Vietnamese projects but face a 30% ownership quota per residential building and cannot own land directly.
Apartment ownership rights last up to 50 years with extension possibilities, but foreigners cannot purchase properties in defense or security-sensitive zones. The government maintains strict quotas limiting foreign ownership to maximum 30% of units in any single residential development.
Land ownership remains prohibited for foreigners, meaning only apartment ownership rights are available. This restriction significantly impacts house and villa purchases, which typically require long-term land leases rather than ownership.
Recent regulatory changes have streamlined the approval process for foreign buyers, reducing paperwork and processing times. However, buyers must demonstrate lawful income sources and maintain valid visa status throughout the ownership period.
Investment certificates may be required for larger purchases, and all transactions must be conducted in Vietnamese dong or USD through authorized banks with proper documentation of fund sources.
How high are the average occupancy rates for long-term rentals in Ho Chi Minh City, Hanoi, and Da Nang?
Average occupancy rates for long-term rentals range 80-90% across Ho Chi Minh City, Hanoi, and Da Nang, with central districts achieving the higher end of this range.
Ho Chi Minh City maintains the most consistent occupancy due to year-round business activity and steady expat population growth. Districts 1, 2, 3, and 7 regularly achieve 85-90% occupancy for quality apartments with international standards.
Hanoi's occupancy rates vary by district and season, with central areas maintaining 80-85% occupancy while suburban developments may experience 75-80% rates. Government employee housing demands and university proximity support stable rental markets.
Da Nang experiences more seasonal variation, with occupancy dipping to 70-75% during rainy season (October-March) but reaching 90-95% during peak tourist and business seasons. The city's growing digital nomad community helps stabilize year-round demand.
Premium properties with modern amenities, reliable internet, and international-standard facilities consistently outperform older or basic accommodations across all three cities.
What kinds of tenants are driving long-term rental demand in each major city?
Ho Chi Minh City rental demand comes primarily from expats, professionals, digital nomads, and students seeking accommodation near business districts and international facilities.
1. **Expat professionals** working for multinational corporations, banks, and consulting firms2. **Digital nomads** attracted by co-working spaces, reliable internet, and lower living costs3. **Local professionals** moving from other provinces for career opportunities4. **International students** attending universities and language schools5. **Business travelers** requiring extended stays for project workHanoi's rental market serves government employees, local families, expats, and students. The capital's political significance attracts diplomatic staff, international organization workers, and NGO personnel requiring long-term accommodation.
Da Nang attracts a diverse mix including locals, seasonal expats, Russians (significant recent influx), digital nomads, and some students. The city's appeal to retirees and remote workers has grown substantially since 2022.
It's something we develop in our Vietnam property pack.
Each city's tenant profile influences optimal apartment features and rental strategies, with HCMC favoring modern business-oriented amenities, Hanoi requiring family-friendly options, and Da Nang emphasizing lifestyle and recreational facilities.
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 property management fees and maintenance costs typically affect net rental yields in Vietnam?
Property management and maintenance fees typically consume 1.5-2.5% of gross rental income, reducing net yields by approximately 0.5-1.0 percentage points.
Professional property management companies charge 8-12% of monthly rent for full service including tenant screening, rent collection, maintenance coordination, and legal compliance. Self-managed properties still incur maintenance costs averaging 1.5-2% of rental income annually.
Building management fees for condominiums range VND 15,000-25,000 per square meter monthly, covering security, cleaning, elevator maintenance, and common area upkeep. These fixed costs significantly impact smaller units' profitability.
Regular maintenance including painting, plumbing repairs, electrical work, and appliance replacement typically requires 1-1.5% of gross rental income annually. Properties targeting expat tenants require higher maintenance standards and more frequent updates.
After deducting all management and maintenance costs, net rental yields often fall 0.8-1.2 percentage points below gross yields, bringing many properties below 3% net returns in the current market environment.
What tax obligations apply to foreign landlords in Vietnam and how do they impact profitability?
Foreign landlords face 15% total taxation on rental income through 10% VAT plus 5% personal income tax, typically collected by withholding agents.
Property management companies usually handle tax withholding and remittance, deducting taxes before paying landlords their net rental income. This system simplifies compliance but requires working with registered management firms.
The 10% VAT applies to all rental income, while the 5% personal income tax is calculated on the gross rental amount. No deductions are permitted for maintenance costs, depreciation, or other operating expenses under current regulations.
These tax obligations reduce net yields by approximately 1.5 percentage points, bringing a 4% gross yield down to 2.5% after taxes. Combined with management fees and maintenance costs, total deductions can reach 2-2.5 percentage points.
Foreign investors should budget for effective tax rates of 15-17% when calculating investment returns, as additional local taxes or fees may apply depending on property location and municipal regulations.
How does tourism seasonality affect long-term rental demand in Da Nang compared to Ho Chi Minh City and Hanoi?
Da Nang experiences pronounced seasonal rental demand fluctuations, with peak periods from April to August and slower months during rainy season, while HCMC and Hanoi maintain steadier year-round demand.
Tourist season significantly boosts Da Nang rental rates and occupancy, as properties can capture both long-term tenants and short-term visitors. However, this creates income volatility that investors must account for in cash flow planning.
Ho Chi Minh City's business-driven rental market shows minimal seasonal variation, supported by consistent corporate relocations, year-round university enrollment, and stable expat community growth. Monthly rental income remains relatively predictable throughout the year.
Hanoi exhibits mild seasonality related to university academic calendars and government budget cycles, but overall demand remains stable due to the capital's administrative functions and educational institutions operating year-round.
Da Nang's tourism seasonality offers both opportunities and challenges - higher peak season rents can boost annual returns, but properties require flexible lease terms and may experience vacancy periods during slower months.
What projected infrastructure projects or urban development plans could boost rental yields in specific districts over the next five to ten years?
Major infrastructure projects including HCMC's metro expansion, Thu Duc City development, and Hanoi's satellite city projects will significantly impact rental yields in targeted districts through 2035.
Ho Chi Minh City's Ben Thanh-Suoi Tien metro line completion will boost Districts 1, 2, and 9 connectivity, while Thu Duc City's expansion creates new residential and commercial hubs in Districts 2 and 9. These projects should increase rental demand and property values along transit corridors.
Thu Thiem New Urban Area in District 2 represents Vietnam's largest urban development project, with international-standard infrastructure, business districts, and residential complexes expected to attract multinational corporations and expat professionals over the next decade.
Hanoi's satellite cities in Gia Lam, Thach That, and surrounding suburban districts will benefit from ring road expansions and new commercial centers. These developments aim to relieve central city pressure while creating new rental demand centers.
It's something we develop in our Vietnam property pack.
Da Nang's airport expansion, new bridge projects, and coastal development plans will enhance the city's appeal to international visitors and long-term residents, potentially boosting rental yields in beachfront and central districts by 2030.
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 rental yield landscape offers distinct opportunities across major cities, with Ho Chi Minh City leading at 3.7-4% yields despite overall market compression.
Strategic investors focusing on central districts, understanding tenant demographics, and accounting for infrastructure development timelines can still achieve attractive returns in this evolving market.
Sources
- Average Rent Vietnam - BambooRoutes
- Vietnam Buying Guide - Global Property Guide
- Hanoi Apartment Rental Yields - VnExpress
- Da Nang Worth It - BambooRoutes
- Long-term Apartments HCMC - Sila Living
- Hanoi Residential Marketbeat - Cushman & Wakefield
- HCMC Districts Explained - EmerHub
- Real Estate Investment Trends 2025 - HKBAV
- Cost of Living Da Nang - VinWonders
- 2-Bedroom Apartments Da Nang - Fazwaz