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
What will happen in Vietnam’s real estate market? Will prices go up or down? Is Ho Chi Minh City still a hotspot for foreign investors? How is Vietnam’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who buy properties in Vietnam, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
1) Vietnam’s home prices will keep rising due to ongoing economic growth and urbanization
Vietnam's residential property prices are steadily climbing and show no signs of slowing down.
One big reason for this is Vietnam's strong economic growth. The country's GDP has been on an upward trend, creating a stable economy that naturally boosts the demand for homes. This economic stability makes Vietnam an attractive place for both local and international buyers.
Foreign investors are also playing a huge role. In 2024, foreign direct investment in Vietnam's real estate market jumped by 89.1%, hitting around US$5.63 billion. This surge in investment is a clear sign of confidence in the market, which in turn pushes property prices higher.
Urbanization is another key factor. By 2030, Vietnam's urban population is expected to reach 45%, which means cities will need over 70 million square meters of new housing each year. As more people flock to urban areas for better jobs and living conditions, the demand for residential properties continues to rise.
With more people moving to cities, the need for housing is skyrocketing. This urban shift is not just about numbers; it's about people seeking better opportunities and lifestyles, which naturally drives up property values.
Sources: Global Property Guide, VOV, Mordor Intelligence
3) Rental yields in Da Nang will rise as tourism and expat interest grow
Coastal cities like Da Nang are experiencing a rise in rental yields thanks to booming tourism and growing expatriate interest.
In 2023, Da Nang welcomed over 7.4 million visitors, nearly doubling the number from the previous year. This surge highlights the city's increasing allure as a travel hotspot. The first quarter of 2024 saw a 72% increase in overseas arrivals to Vietnam compared to the same period in 2023, indicating that more people are discovering Da Nang's charm. This influx is driving up demand for rental accommodations.
Da Nang's tourism industry is thriving, with revenue from accommodation and related services expected to reach 40.7 trillion VND in 2025, marking an 11% increase from 2024. This growth is a testament to the city's expanding appeal and the opportunities it presents for property investors.
But it's not just tourists flocking to Da Nang. As of 2023, around 4,200 expatriates have made Da Nang their home, attracted by its low cost of living, stunning beaches, and relaxed lifestyle. This growing expatriate community is further fueling the demand for rental properties, as they seek comfortable and affordable living spaces.
For those considering investing in property, Da Nang offers a unique blend of natural beauty and economic opportunity. The city's vibrant culture and welcoming atmosphere make it an attractive option for both short-term visitors and long-term residents.
Sources: VietnamPlus, FX Compared, Vietnam.vn
4) More foreign buyers will invest in residential properties in Vietnam's emerging cities like Can Tho
Foreign buyers are eyeing Vietnam's emerging cities like Can Tho for residential investments due to rising property prices in major cities.
In 2023 and 2024, property prices in Ho Chi Minh City and Hanoi surged significantly, pushing investors to seek more affordable options. This shift is making emerging cities like Can Tho more attractive.
Vietnam's real estate sector is also seeing a boost from foreign direct investment (FDI). In 2024, registered FDI jumped by 89.1%, reaching about US$5.63 billion, highlighting the market's appeal. Favorable policies and a welcoming investment climate are drawing in foreign investors.
New laws introduced in 2023 and 2024 have made the market more transparent and appealing to foreign investors, further encouraging this trend. These legal changes are part of the government's efforts to attract more international interest.
Infrastructure development in cities like Can Tho is another draw. With improved connectivity and infrastructure, these cities are becoming more attractive for investment. This development is part of Vietnam's broader urbanization and economic growth.
As living standards rise in these emerging cities, their appeal to foreign buyers continues to grow. The combination of economic growth and urbanization is making places like Can Tho increasingly desirable for residential investments.
Sources: VOV, Vietnam News, The GPSC, The Investor
5) Rental yields in Hanoi will drop as new developments boost rental property supply
Hanoi's real estate market is booming with a surge in new residential developments.
In the first nine months of 2024, over 19,000 new apartments hit the market, outpacing the entire supply of 2023. This wave of new housing, especially in large urban areas, marks the biggest growth in the last five years. If you're eyeing a property in Hanoi, this is a crucial trend to watch.
The influx of new apartments means more rental properties are now available. In Q3 2023 alone, nearly 8,230 units were launched, mostly high-end apartments. Areas like Nam Tu Liem, Tay Ho, and Gia Lam are seeing a noticeable rise in rental units as construction permits keep rolling in.
With this increased supply, occupancy rates are taking a hit. For example, the Residential Building Warehouse (RBW) saw a 7% drop in occupancy, now at 87%. Meanwhile, the Residential Building Facility (RBF) averages an 84% occupancy rate. This suggests an oversupply in the market, a trend backed by market analysis reports.
As more properties flood the market, rental yields are likely to decline. This is particularly true in districts with a high concentration of new developments. If you're considering investing, keep an eye on these areas as they might offer more competitive pricing.
For potential buyers, this means more choices and possibly better deals as landlords compete to fill their properties. However, it's essential to consider the long-term implications of this oversupply on rental income.
Sources: Hanoi Times, CBRE Vietnam
Get fresh and reliable information about the market in Vietnam
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Rental yields in Vietnam's rural areas will stay low as more people move to cities
Rental yields in Vietnam's rural areas are expected to remain low as more people move to the cities.
In recent years, major cities like Hanoi and Ho Chi Minh City have seen significant population growth. These urban centers are now bustling employment hubs, drawing workers from the countryside and increasing the demand for housing and commercial spaces.
Urban areas are experiencing a real estate boom. For example, property prices in Hanoi's urban districts have risen by over 10% annually due to this growing demand. Meanwhile, rural real estate markets lag behind, with lower demand and price appreciation, making them less appealing to investors.
The shift of people from rural to urban areas is not just about numbers; it affects local economies too. Depopulation in rural areas leads to declining rental yields and property values. The lack of modern amenities and job opportunities in these regions further discourages rental demand.
In the countryside, the absence of modern conveniences and employment options makes it tough to attract tenants. This lack of appeal contributes to the low rental yields that investors face in rural areas.
As cities continue to grow, the gap between urban and rural real estate markets widens. Urban migration is a key factor driving this trend, as people seek better opportunities in the cities.
Sources: Hanoi Times, Homebase
7) Demand for sustainable and energy-efficient homes will grow among Vietnamese consumers
In Vietnam, green buildings are on the rise, with 396 certified by the end of 2023, a 30% jump from the previous year.
The government is pushing for more sustainable construction by offering tax breaks for eco-friendly projects. They're aiming for even more green certifications by 2025 and 2030, making it easier for developers to go green.
People in Vietnam are increasingly interested in energy-efficient homes. A PwC survey found that over 90% of Vietnamese are willing to pay extra for sustainable materials, showing a strong shift towards eco-friendly living.
These changes are not just about saving the planet; they're also about meeting consumer demand. More and more, buyers want homes that are not only beautiful but also kind to the environment.
Developers are catching on, realizing that sustainability sells. With government incentives and consumer interest, the market for green homes is set to grow even more.
So, if you're thinking about buying property in Vietnam, consider the benefits of a green home. It's not just a trend; it's a smart investment in a sustainable future.
Sources: Reccessary, Net Zero Vietnam, Western Pacific, Vietnam Briefing
8) Demand for larger homes in Vietnam will grow as multi-generational living becomes more popular
In Vietnam, multi-generational living is becoming increasingly common, especially in bustling cities like Ho Chi Minh City.
According to a 2024 survey by Indochina Research, 48% of people live in two-generation households, while 42% share their homes with more than three generations. This trend highlights a growing need for larger living spaces to accommodate extended families.
The Global Data Lab reported in 2022 that the average household size in Vietnam is 3.56 people per household, with even larger families in rural areas. This reflects the cultural emphasis on family unity and support, which is a cornerstone of Vietnamese life.
Real estate data from 2024 shows a surge in interest for bigger homes. Developments like Vinhomes' The Opus One and Gamuda Land's Eaton Park are seeing high reservation rates, indicating a strong demand for properties that cater to multi-generational families.
These projects often include high-rise apartments specifically designed for extended family living, offering the space and amenities needed for such arrangements. This shift is not just about space; it's about maintaining family bonds and providing support across generations.
Sources: Indochina Research, Global Data Lab, The Investor
We have made this infographic to give you a quick and clear snapshot of the property market in Vietnam. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Interest in Hanoi's Old Quarter properties will drop as younger buyers look for modern amenities elsewhere
In Hanoi, younger buyers are shifting their focus to modern residential developments.
Areas like Dong Anh, Gia Lam, and Hoang Mai are becoming hotspots because they offer the modern amenities that younger buyers crave. These districts have seen a boom in infrastructure, making them more appealing for those who value convenience and a contemporary lifestyle.
Consumer surveys back this up, showing a strong preference for new, modern living spaces over the charm of historical properties. This trend is reshaping the property landscape in Hanoi.
Infrastructure projects, especially metro lines, are a big draw for younger buyers, pulling them towards suburban areas. These developments are in line with Hanoi's younger demographic, who are keen on integrated urban areas with all the modern perks.
The government is also playing a role by promoting urban expansion outside the Old Quarter. This aligns with the growing demand for modern living and supports the shift away from historical areas.
As a result, Hanoi's historic Old Quarter is seeing a decline in property interest as the younger generation looks elsewhere for their dream homes.
Sources: The Investor, Hanoi Times, Vietnam Plus
10) Demand for senior-friendly housing in Vietnam will grow as the population ages
Vietnam's aging population is reshaping the housing market, with life expectancy now at 74.5 years.
By 2038, over 21 million Vietnamese will be elderly, making up nearly 20% of the population. This demographic shift means a growing demand for homes that cater to seniors. The government is aware of this trend, with the Minister of Health noting that Vietnam is on track to become an aging society by 2038.
In cities like Ho Chi Minh City, there's a noticeable demand for age-friendly urban spaces. These areas are vital for the elderly, offering places to socialize and enjoy outdoor activities. As urbanization continues, with the urban population reaching 38.1% in 2023, the need for senior-friendly housing is becoming more urgent.
Developers are starting to see the potential in creating senior-friendly residential developments. These projects not only provide suitable living arrangements but also enhance the quality of life for older residents. The focus is on accessibility, safety, and community engagement.
Investing in properties that cater to this demographic could be a smart move. With the aging population, there's a clear opportunity for growth in this sector. Properties designed with seniors in mind are likely to see increased demand in the coming years.
As Vietnam gears up for an aged society, the housing market is set to evolve. Senior-friendly developments are not just a trend; they're becoming a necessity. This shift presents a unique opportunity for investors and developers alike.
Sources: Life Expectancy in Viet Nam Increases Rapidly, Viet Nam Gearing Up for Aged Society, Public Open Spaces for the Elderly in Urban Areas
11) New zoning laws in Vietnam will influence residential designs by promoting mixed-use developments
Vietnam's new zoning laws are set to favor mixed-use developments, reshaping residential property designs.
With the 2023 Law on Real Estate Business, Vietnam is embracing more flexible property classifications. This change means developers can now blend residential, commercial, and recreational spaces into single projects. Imagine living in a place where you can shop, dine, and relax without leaving your neighborhood. This is the future that these new laws are paving the way for.
Vietnamese people love vibrant, walkable neighborhoods, and this trend is evident in places like Phu My Hung Township. These areas are not just about living; they are about creating communities where residential spaces coexist with retail and leisure facilities. It's a lifestyle choice that many are eager to embrace.
Foreign investors are taking notice, pouring in $37 billion in 2023 to support these mixed-use projects. They see the potential in developments that offer sustainable and integrated living environments. This influx of capital is a strong vote of confidence in Vietnam's real estate market.
The government's push for green building development is another driving force. By aligning with national goals to reduce greenhouse gas emissions, these projects are not just about convenience but also about sustainability. It's a win-win for both the environment and the economy.
Sources: Rahmat Lim & Partners, Trade.gov, Jones Lang LaSalle
Don't buy the wrong property, in the wrong area of Vietnam
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Affordable housing prices in Vietnam will stagnate as government policies boost supply
In 2024, Vietnam's housing supply saw a remarkable 60% increase compared to the previous year.
Hanoi alone welcomed over 19,000 new apartment units in just the first nine months of 2024, a clear sign of the booming market. The Vietnamese government is pushing hard for affordable housing, understanding the need for more budget-friendly homes. They've rolled out a massive 120 trillion VND support package to fund social and worker housing projects, aiming to flood the market with affordable options.
Recent policy changes, like the Land Law of 2023, are designed to cut through project approval delays and boost housing supply. Lower interest rates and updated real estate laws are also in play, expected to keep the market on an upward trajectory.
Experts are forecasting a U-shaped recovery for the real estate market, with prices leveling out as supply grows. This isn't just speculation; historical data shows that government actions have previously led to more stable and affordable housing prices.
With these efforts, the market is poised for a shift. The government's strategic moves are likely to stabilize prices as they increase the housing supply, making it a buyer's market.
Affordable housing in Vietnam is set to face price stagnation, thanks to these government policies aimed at boosting supply. This trend is expected to continue as more projects come online, offering potential buyers more choices at stable prices.
Sources: The Investor, CTOL Digital, Vietnam Plus, Global Property Guide
13) Demand for homes with fitness amenities in Vietnam will grow as health and wellness culture expands
Vietnam is experiencing a boom in fitness culture.
With the fitness club market expected to surpass $3.5 billion by 2023, more people are flocking to gyms and fitness centers. This surge in interest naturally leads to a higher demand for homes equipped with fitness amenities, as people want to maintain their active lifestyles conveniently.
On top of that, the fitness equipment market is on the rise, projected to hit USD 284 million by 2030. This growth suggests that many are investing in home fitness solutions, which could further drive the demand for residential properties with built-in fitness facilities.
Wellness tourism is another area seeing growth, with a 12-15% annual increase from 2017 to 2024. This trend highlights a broader interest in health and wellness, indicating that people might also prefer homes offering integrated fitness amenities.
In Vietnam, the growing health and wellness culture is not just a trend; it's becoming a lifestyle. As more people prioritize their well-being, the demand for residential properties with fitness amenities is likely to rise.
For potential property buyers, this means that investing in homes with fitness facilities could be a smart move, aligning with the country's evolving lifestyle preferences.
Sources: VnEconomy, VietnamNet, BlueWeave Consulting
14) More foreign retirees will buy homes in Vietnam's coastal areas
Vietnam is becoming a hotspot for foreign retirees looking to buy homes, especially along its stunning coastlines.
With around four million foreigners and overseas Vietnamese eyeing property in Vietnam, the interest is undeniable. This surge is partly due to the 89.1% increase in foreign direct investment in real estate, which hit about US$5.63 billion in late 2024. Such investment reflects growing confidence in Vietnam's market, making it a prime choice for retirees.
The Vietnamese government is also making it easier for foreigners to own property. The new Land Law, effective January 2025, will allow more overseas Vietnamese to buy homes, removing previous ownership barriers. This change is set to enhance Vietnam's appeal as a retirement haven.
Compared to other Southeast Asian countries, Vietnam offers competitive property prices, making it an attractive option for retirees seeking a beautiful, culturally rich place to settle without overspending.
Infrastructure in coastal areas is rapidly improving, with better transportation and logistics. The increase in international flights to these regions means easier access for retirees, enhancing their living experience.
Coastal areas are also seeing a boom in amenities and services tailored for expatriates, like interior design and home repair. This expansion ensures that retirees have the comforts and conveniences they need to enjoy their golden years in Vietnam.
Sources: Vietnam Briefing, VOV, Invest Asian, Hanoi Times
We made this infographic to show you how property prices in Vietnam compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Residential property growth in Nha Trang will slow down due to rising concerns about coastal erosion
Nha Trang is grappling with serious environmental challenges, especially coastal erosion.
According to a 2023 report by PEMSEA, nearly 20% of Vietnam's coastal hotels are near beaches that have lost over 20 meters of land between 2015 and 2020. This is a stark reminder of the erosion issues plaguing the area.
The Vietnam Administration of Seas and Islands, along with experts, has highlighted that intense flooding and erosion threaten over 11.8 million people in coastal provinces. This paints a vivid picture of the environmental degradation affecting places like Nha Trang.
As a result, insurance premiums for coastal properties are rising, reflecting the increased risk and environmental degradation. This financial strain could discourage potential buyers, slowing down the residential property market.
These environmental concerns are not just numbers; they are shaping how people feel about buying property in Nha Trang. Buyer sentiment and market dynamics are likely to shift as these issues persist.
Sources: PEMSEA, Open Development Mekong
16) Property values in Vietnam's flood-prone areas will rise due to flood prevention infrastructure projects
Flood prevention projects are boosting property values in Vietnam's flood-prone areas.
Take Ho Chi Minh City, for instance. Along Tran Xuan Soan Street in District 7, two major projects are underway. These involve elevating roads and building new drainage systems, with a hefty investment of over VND375 billion, or about US$15.5 million. Such upgrades are expected to significantly reduce flood risks, making the area more appealing to potential buyers.
Vietnam's geography, especially the low-lying Red River and Mekong Delta, makes it highly susceptible to flooding. In 2023, severe flooding impacted around 215,000 people across ten provinces, underscoring the urgent need for effective flood prevention measures. Floods account for a staggering 97% of the country's average annual economic losses from hazards.
Buyers are increasingly drawn to properties with reduced flood risk. Surveys indicate that properties in areas with improved flood prevention infrastructure see higher demand and increased values. Real estate agents have noticed this trend, reporting that buyers are willing to pay more for homes in these safer areas.
Market data supports this shift, showing a clear correlation between infrastructure improvements and property demand. As flood prevention measures are implemented, property values in these areas are expected to rise, reflecting the growing buyer interest.
In Ho Chi Minh City, these projects are not just about safety; they're about enhancing the overall appeal of neighborhoods. With better infrastructure, the quality of life improves, attracting more residents and investors alike.
Sources: VnExpress, ReliefWeb, Open Development Mekong
17) District 9 in Ho Chi Minh City will attract more residential investment as tech parks and educational institutions expand
District 9 in Ho Chi Minh City is quickly becoming a hotspot for residential investment.
The expansion of tech parks, especially the Saigon Hi-Tech Park, is a major driver of this trend. This park is a magnet for multinational companies and tech startups, creating a demand for housing as they bring in a workforce. As these businesses grow, they need more employees, and those employees need places to live, which is pushing up the demand for homes in the area.
Education is another big factor. The new campus of Fulbright University Vietnam is drawing students and faculty to District 9. This influx of people naturally increases the need for housing nearby. Plus, with improved roads and public transport, getting to District 9 is easier than ever, making it a convenient choice for both students and tech workers.
The government is also playing a supportive role by offering tax breaks and subsidies to tech and education sectors in District 9. These incentives make it easier for businesses and schools to set up shop, which in turn boosts the demand for residential properties. The media has been buzzing about District 9 as an emerging tech hub, catching the eye of investors eager for growth opportunities.
Real estate experts are predicting growth in District 9, thanks to its strategic location and ongoing developments. They see the area as offering high potential returns on investment, making it a tempting option for those looking to invest in residential properties. With all these factors aligning, it's no wonder District 9 is on investors' radar.
Sources: Saigoneer, Jones Lang LaSalle
Make a profitable investment in Vietnam
Better information leads to better decisions. Save time and money. Download our guide.
18) Quang Ninh will emerge as a new residential investment hotspot because of its closeness to the Van Don Economic Zone
Quang Ninh province is quickly becoming a hot spot for residential investment, thanks to its closeness to the Van Don Economic Zone.
With major upgrades in infrastructure like highways and airports, the area is now more accessible, making it attractive for both investors and future residents. These improvements are vital as they ensure easy movement and connectivity, which are essential for anyone thinking about relocating.
The Van Don Economic Zone has been a magnet for foreign direct investment, drawing companies from 19 countries. By 2024, investments are expected to reach $14.6 billion. This surge in investment signals economic growth, naturally boosting the demand for homes as more businesses set up shop and more people need places to live.
The local government is also pushing for economic growth with plans to attract 17 million visitors in 2024 and 25 million by 2030. This focus on tourism not only strengthens the local economy but also makes the area more appealing for residential development. The influx of tourists and the lively atmosphere they bring make living in Quang Ninh even more enticing.
Imagine living in a place where the economy is booming, and the environment is vibrant. The rising number of tourists adds to the charm, making Quang Ninh a desirable place to call home. The local government's strategic plans are paving the way for a thriving community.
With all these factors in play, Quang Ninh is set to become a new frontier for residential investment, offering a unique blend of economic opportunity and quality of life.
Sources: The Investor, Vietnam Insiders, Vietnam.vn, Bao Quang Ninh
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.