How is the property market forecast in Vietnam?

Last updated on September 1, 2025

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 property market is experiencing dynamic growth with significant price increases in major cities and evolving supply patterns across different regions.

As of September 2025, Ho Chi Minh City leads with apartment prices averaging $4,691 per square meter (up 47% year-on-year), while Hanoi and Da Nang offer more affordable options. New housing supply is expanding rapidly in Hanoi with 80,900 units planned from 2026 onwards, while Ho Chi Minh City shows more moderate delivery schedules. Rental yields remain competitive regionally at 3.06% to 3.55%, though slightly down from previous highs.

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.

Quick Summary:

Vietnam's property market shows strong momentum with Ho Chi Minh City apartment prices rising 47% year-on-year and significant supply increases planned for Hanoi.

Economic growth projections and infrastructure developments support continued market expansion, though affordability challenges are emerging in prime locations.

Market Metric	Ho Chi Minh City	Hanoi	Da Nang
Apartment Price per sqm (2025)	$4,691 (+47% YoY)	$2,500-3,300 (+1.5% YoY)	$2,000-2,900
House Price per sqm (2025)	$6,683	$2,500-3,300	Lower than HCMC/Hanoi
Rental Yield (Q1 2025)	3.55%	3.18%	3.06%
New Units Q1 2025	800 units	7,940 units	Limited data
Planned Supply 2026+	Moderate growth	80,900 units	Steady development
Market Outlook	Strong growth, supply-constrained	Rapid expansion planned	Affordable alternative
Investment Appeal	High-end market leader	Volume growth focus	Entry-level opportunity

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Vietnam. If you'd like to learn more about us, you can check our presentation page.

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 average prices per square meter for apartments and houses in Ho Chi Minh City, Hanoi, and Da Nang?

Ho Chi Minh City commands the highest property prices in Vietnam, with apartments averaging $4,691 per square meter as of Q2 2025.

Houses in Ho Chi Minh City reach approximately $6,683 per square meter, while apartments cost around $3,362 per square meter for secondary market units. Primary market apartments show significantly higher prices at $4,691 per square meter, representing a substantial 47% increase compared to the same period in 2024.

Hanoi offers more moderate pricing with both apartments and houses ranging between $2,500 and $3,300 per square meter. The capital city experienced a modest 1.5% price increase in Q1 2025 compared to Q1 2024, showing much more stability than Ho Chi Minh City's rapid growth.

Da Nang presents the most affordable option among major Vietnamese cities, with apartments averaging between $2,000 and $2,900 per square meter. House prices in Da Nang remain consistently lower than both Ho Chi Minh City and Hanoi, making it an attractive entry point for property investors.

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

How many new housing units are expected in 2025-2026 compared to previous years?

Hanoi is experiencing a housing supply boom with 7,940 new apartment units delivered in Q1 2025 alone, representing a 95% year-on-year increase.

The capital city expects to complete 7,400 units throughout 2025, but the major development comes with 80,900 units planned for delivery from 2026 onwards. This massive pipeline represents a significant acceleration compared to historical delivery rates in the city.

Ho Chi Minh City shows more controlled supply growth with approximately 800 new apartment units delivered in Q1 2025, marking a 29% year-on-year increase but a 70% quarter-on-quarter decline. For social housing specifically, the city expects 2,874 units in 2025, compared to 2,745 units already completed by June 2025.

The supply pattern indicates a clear shift toward Hanoi as the primary growth center for new housing developments, while Ho Chi Minh City maintains more selective development patterns.

These delivery schedules represent a substantial increase compared to the past three years when annual completions consistently fell short of current forecasted supply levels for 2026.

How do current rental yields compare with regional markets?

Location	Average Rental Yield	Market Position
Ho Chi Minh City	3.55%	Premium districts 4, 7, 8 exceed 4%
Hanoi	3.18%	Capital city steady performance
Da Nang	3.06%	Coastal city competitive rates
Bangkok, Thailand	3.1-4.0%	Regional benchmark comparison
Kuala Lumpur, Malaysia	2.5-3.5%	Lower than Vietnam average
Jakarta, Indonesia	4.0-6.0%	Higher yield regional leader
Bali, Indonesia	4.0-6.0%	Tourism-driven premium yields

What are the current property transaction trends and buyer demographics?

Property transactions in Vietnam's residential market show strong momentum driven primarily by domestic buyers with increasing foreign investor interest.

Ho Chi Minh City leads transaction volumes with particular strength in the primary market, where new apartment sales have surged alongside the 47% price increases. The secondary market remains active but shows more price sensitivity among buyers.

Hanoi's transaction activity has accelerated significantly, supported by the massive supply increase of 7,940 new units in Q1 2025. Local buyers dominate the market, taking advantage of more moderate price increases compared to Ho Chi Minh City.

Foreign investors are increasingly active in both cities, though they face ownership restrictions that limit them primarily to apartment purchases rather than landed properties. International buyers typically focus on prime locations and new developments with clear title structures.

Commercial property transactions have grown alongside residential activity, with office and retail spaces in central business districts commanding premium prices and generating steady investor interest.

What financing options and mortgage rates are available for property purchases?

Vietnamese banks currently offer mortgage financing with interest rates ranging from 8% to 12% annually for property purchases as of September 2025.

Approximately 60-70% of property purchases in major cities are financed through mortgages, while 30-40% involve cash transactions. Foreign buyers typically require higher down payments of 30-50% compared to local buyers who can often secure financing with 20-30% down payments.

Major Vietnamese banks including Vietcombank, BIDV, and VietinBank provide property loans with terms extending up to 20-25 years for residential properties. Income verification requirements have become more stringent, particularly for high-value properties in prime locations.

Interest rates vary based on loan-to-value ratios, borrower profiles, and property types. New developments often feature developer financing partnerships that can offer slightly more favorable terms for qualified buyers.

Cash purchases remain popular among wealthy domestic buyers and foreign investors, particularly for properties exceeding $200,000 where financing becomes more complex and expensive.

How does Vietnam's GDP growth correlate with property market performance?

Vietnam's GDP is projected to grow at 6.5-7.0% annually through 2025-2026, maintaining its position among the fastest-growing economies in Southeast Asia.

Historical analysis shows a strong correlation between GDP growth and property price appreciation in major Vietnamese cities. During periods of 6%+ GDP growth, property prices in Ho Chi Minh City and Hanoi typically increase by 10-15% annually, while slower GDP growth periods see more modest price gains of 3-5%.

The current economic expansion, driven by manufacturing exports, foreign direct investment, and domestic consumption, directly supports property demand through increased employment and rising incomes. Urban areas benefit most from this correlation as job growth concentrates in cities.

Economic growth also attracts international businesses and expatriate workers, creating additional rental demand and supporting property investment returns. The service sector expansion particularly benefits commercial real estate markets in business districts.

Infrastructure spending, often correlated with GDP growth periods, further amplifies property market benefits by improving connectivity and development potential in previously less accessible areas.

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What major infrastructure projects are influencing property values?

Vietnam's infrastructure development pipeline includes several transformative projects that are significantly impacting property values in surrounding areas.

The Ho Chi Minh City Metro system, with Line 1 operational and additional lines under construction, has increased property values by 15-25% within 500 meters of stations. Areas along the planned metro routes are experiencing speculative investment and development activity.

Hanoi's expanded metro network continues to drive property appreciation in previously less connected districts. The completion of additional lines through 2026 is expected to further boost residential demand in outer districts with improved connectivity to the city center.

The Long Thanh International Airport project near Ho Chi Minh City, scheduled for partial operations by 2025, has already increased land values in the surrounding Dong Nai province by 20-30%. Property developers are focusing on residential and commercial projects in the airport corridor.

Highway expansions connecting major cities, particularly the North-South Expressway segments, are opening new development areas and making suburban properties more attractive to commuters and investors.

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

What population growth and urbanization trends will affect housing demand?

1. **Ho Chi Minh City**: Population projected to reach 12 million by 2026, creating demand for approximately 50,000 additional housing units annually2. **Hanoi**: Urban population expected to grow by 3.5% annually through 2026, requiring 40,000 new units per year to meet demand3. **Da Nang**: Coastal city anticipating 2.8% annual population growth, with tourism sector driving additional seasonal housing needs4. **Hai Phong**: Industrial port city experiencing 3.2% annual growth, supported by manufacturing sector expansion5. **Can Tho**: Mekong Delta hub expecting steady 2.5% growth as agricultural processing center develops

Vietnam's urbanization rate continues accelerating, with 40% of the population now living in urban areas compared to 35% five years ago. This trend particularly benefits secondary cities like Da Nang and Hai Phong, which offer more affordable alternatives to Ho Chi Minh City and Hanoi.

Young demographics drive housing demand, with 65% of the population under age 35 and increasing household formation rates as economic conditions improve. This demographic shift supports apartment demand over traditional multi-generational housing arrangements.

infographics rental yields citiesVietnam

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 much foreign direct investment is flowing into real estate?

Foreign direct investment in Vietnam's real estate sector reached $2.8 billion in the first eight months of 2025, representing a 15% increase compared to the same period in 2024.

This investment level significantly exceeds the five-year average of $2.1 billion annually, indicating growing international confidence in Vietnam's property market. Major source countries include Singapore, South Korea, Japan, and Hong Kong, with increasing interest from European and American institutional investors.

Commercial real estate attracts the largest share of foreign investment, particularly office buildings, shopping centers, and industrial properties in Ho Chi Minh City and Hanoi. Residential investment focuses primarily on high-end apartment developments and mixed-use projects.

Foreign investors are particularly active in urban regeneration projects and smart city developments, bringing both capital and advanced development expertise to Vietnamese markets. These investments often include long-term commitments to ongoing property management and development.

The government's selective approach to foreign investment approvals has maintained steady inflows while ensuring projects align with national development priorities and urban planning objectives.

What government regulations and tax changes could impact the market?

Vietnamese authorities are discussing several regulatory changes that could significantly influence property market dynamics and foreign investment flows.

Property transfer taxes may increase from the current 2% to 2.5% for residential properties valued above $150,000, primarily affecting higher-end segments in Ho Chi Minh City and Hanoi. This change would impact both local and foreign buyers in premium markets.

Foreign ownership limits for apartments may be relaxed from the current 30% per building restriction to allow up to 40% foreign ownership in designated investment zones. This change would particularly benefit new developments in central business districts and tourist areas.

Land use rights duration for foreign-invested projects may be extended from 50 to 70 years, making Vietnam more competitive with regional markets like Thailand and Malaysia. This extension would apply to both commercial and residential developments.

Annual property holding taxes are under consideration for properties valued above $200,000, potentially affecting investment returns for high-value properties. The proposed tax rate ranges from 0.3% to 0.5% of assessed property value annually.

Mortgage lending regulations may tighten for properties exceeding certain value thresholds, requiring higher down payments and more stringent income verification processes.

How do affordability ratios compare with regional markets?

City/Country	Price-to-Income Ratio	Affordability Trend (3-Year)
Ho Chi Minh City	18.5x	Worsening (-15%)
Hanoi	14.2x	Stable (-2%)
Da Nang	11.8x	Improving (+5%)
Bangkok, Thailand	16.3x	Worsening (-8%)
Kuala Lumpur, Malaysia	12.4x	Stable (+1%)
Jakarta, Indonesia	15.7x	Worsening (-12%)
Manila, Philippines	19.2x	Worsening (-18%)

What are analysts' specific price growth projections for 2025-2026?

Property market analysts project continued strong price appreciation across Vietnam's major cities with varying growth rates by property type and location.

**Apartments (2025-2026 Annual Growth Projections):**1. **Ho Chi Minh City**: 8-12% annually, driven by supply constraints and strong demand2. **Hanoi**: 5-8% annually, supported by new supply and infrastructure improvements 3. **Da Nang**: 6-9% annually, benefiting from tourism recovery and coastal development4. **Hai Phong**: 7-10% annually, industrial growth supporting residential demand5. **Can Tho**: 4-6% annually, steady growth in regional economic center

Landed houses are expected to appreciate faster than apartments, with analysts projecting 10-15% annual growth in Ho Chi Minh City and 8-12% in Hanoi through 2026. Limited supply of developable land in urban cores drives these premium growth rates.

Commercial properties show mixed projections, with office spaces in central business districts expected to appreciate 6-9% annually, while retail properties may see more modest 4-7% growth depending on economic recovery and consumer spending patterns.

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.

Vietnam's property market presents compelling opportunities with strong fundamentals supporting continued growth through 2026.

While affordability challenges emerge in prime locations, infrastructure development and economic expansion create favorable conditions for both investors and residents considering property purchases.