Buying real estate in Vietnam?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

15 tips for foreigners buying property in Vietnam in 2025

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Authored by the expert who managed and guided the team behind the Vietnam Property Pack

buying property foreigner Vietnam

Everything you need to know before buying real estate is included in our Vietnam Property Pack

Are you considering investing in Vietnam’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?

These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.

Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.

How this content was created 🔎📝

At BambooRoutes, we study 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 Hanoi, Ho Chi Minh City, and Da Nang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

Our process started with insights drawn from these conversations and what we observed firsthand. Then, to make our points more solid, we turned to trusted sources like Statista, Macrotrends, and Savills (among many others).

We only include "things to know" that are backed by credible sources, solid context, and clear information.

If we can’t find enough supporting data or context, we leave it out. There’s no point in sharing random assumptions about the market that don’t make sense or rely on questionable reports. Our goal is to provide you with a complete and reliable analysis of the real estate market for foreigners looking to buy property—not just a collection of random opinions.

Every source and citation is clearly listed because we believe in transparency and want to give you the opportunity to explore further.

We also use a touch of AI during the writing phase. This helps us make our explanations clearer and ensures there are no grammar or syntax mistakes. We’re sure you prefer it this way!

Our team has also created bespoke infographics that aggregate, summarize, and visualize key data trends, making complex information easy to understand and impactful. We hope you’ll enjoy them! All other illustrations and media were crafted in-house and added manually to ensure quality and consistency.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Check the foreign ownership quota in Vietnam, as foreigners can only own up to 30% of a condo building

In Vietnam, foreigners can only own up to 30% of the units in a condominium building.

This rule, part of the Housing Law of 2014 and Decree No. 99/2015/ND-CP, is a cornerstone of the Vietnamese property market. Real estate agencies frequently stress this 30% cap because it's a big deal for foreign investors. If you're eyeing a condo in Vietnam, make sure to check the foreign ownership quota before diving in.

InvestAsian, a well-known real estate agency, points out that foreign ownership can't exceed 30% of the floor space in any one condo. This is a hot topic among real estate pros and potential buyers, so it's something you'll hear a lot about if you're in the market.

In 2024, Decree 95/ND-CP came into play, reaffirming the 30% limit and showing the Vietnamese government's commitment to managing foreign investment in real estate. This decree is part of a broader strategy to keep the property market balanced and fair.

For those considering a purchase, it's crucial to understand these regulations. They are not just numbers but a reflection of Vietnam's approach to foreign investment. Knowing the rules can save you from potential headaches down the line.

So, if you're thinking about buying property in Vietnam, keep this 30% rule in mind. It's a key piece of the puzzle in navigating the Vietnamese real estate landscape.

Sources: InvestAsian, ASLGATE

2) Foreigners can’t own land in Vietnam, but you can lease it for up to 50 years with possible extensions

In Vietnam, foreigners can't own land, but they can lease it for up to 50 years with a chance to extend.

While many countries allow foreigners to buy land outright, Vietnam's rules are different. The 2014 law on land ownership makes it clear that foreigners can only lease land. This regulation continues under the new Housing Law 2023, effective from January 1, 2025. So, you can own a house or apartment, but the land must be leased from the government.

Real estate agencies in Vietnam often explain that foreigners can only purchase land through a long-term leasehold of up to 50 years. This might seem unusual if you're used to countries where buying land is straightforward for everyone. In Vietnam, freehold titles are not an option for foreigners.

Interestingly, this leasing system doesn't deter foreign investors. Many see it as a way to enjoy the benefits of property ownership without the full commitment of buying land. The lease terms are often flexible, and extensions are usually granted, making it a viable option for long-term investment.

Moreover, the Vietnamese government has been known to encourage foreign investment in real estate, offering various incentives and support. This approach has led to a thriving property market, especially in urban areas like Ho Chi Minh City and Hanoi, where foreign interest is particularly high.

So, while the idea of leasing rather than owning might be new to some, it opens up opportunities to invest in a growing market. With the right guidance, navigating these regulations can be straightforward, allowing you to enjoy the vibrant culture and dynamic economy of Vietnam.

Sources: Vietnamese Attorney, Vietnam Briefing

statistics infographics real estate market Vietnam

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.

3) Consider properties in rapidly growing cities like Da Nang and Nha Trang to benefit from urbanization trends

Investing in cities like Da Nang and Nha Trang is a smart move because they're growing fast.

Da Nang's population hit 1,253,000 in 2024, showing a 2.62% increase from 2023. This city is outpacing the national urbanization rate, which hovers around 1% to 1.2%. It's not just about numbers; Da Nang is buzzing with new infrastructure projects. A massive 450-hectare deep-sea port is being built in Lien Chieu District, with the first phase set to wrap up by 2025. This project has caught the eye of big investors, like India's Adani Group, which is pouring in $10 billion.

Da Nang's real estate market is on fire. Nearly 50% of new apartments were snapped up in the third quarter of 2024. The city sold about 1,060 units during this time, driven by new residential and commercial projects. One standout is the Làng Vân Integrated Resort, which is pulling in both locals and investors.

Sources: Macrotrends, Wikipedia, CVR

4) Expect favorable conditions for property investors, as Vietnam actively encourages foreign investment

The Vietnamese government is making it easier for foreigners to invest in property.

In 2023, foreign direct investment (FDI) in Vietnam hit $23.2 billion, a noticeable jump from the previous year. This upward trend continued into 2024, with FDI increasing by 38.6% in the early months, totaling over $4.29 billion compared to the same period in 2023. The government has been rolling out policies to make the business environment more welcoming, which is a big draw for investors.

These policies include efforts to improve infrastructure and urban development, making Vietnam a hotspot for foreign investors. The 2014 Housing Law also plays a role, allowing foreigners to buy property, though there are some restrictions. This has led to a rise in foreign-owned properties, with many buyers hailing from South Korea, China, and the U.S.

Vietnam's real estate market is booming, fueled by both local and international investments. The government’s push for foreign investment is part of a broader strategy to boost economic growth. This includes enhancing the business climate and launching infrastructure projects, which are key factors in attracting foreign capital.

For those considering buying property in Vietnam, it's worth noting that the market is becoming increasingly competitive. The influx of foreign buyers is driving demand, particularly in urban areas where development projects are underway. This trend is expected to continue as more investors recognize the potential of Vietnam's growing economy.

Sources: Statista, The Investor, Vietnam Briefing

5) Avoid properties in Vietnam's flood-prone areas, as natural disasters can impact property values

When buying property in Vietnam, be cautious of flood-prone areas.

In 2023, Vietnam faced over 1,100 natural disasters, including severe floods that wreaked havoc across many regions. These disasters not only resulted in tragic loss of life but also caused significant property damage, making potential buyers think twice.

Take August 2023, for example, when some areas were hit with nearly 400mm of rainfall, leading to devastating floods. Such extreme weather can scare off investors, as they worry about the decrease in property values due to these risks.

Adding to the concern is the low penetration rate of flood insurance in Vietnam. Many property owners find themselves unprepared for flood-related damages, which can further drive down property values and have a substantial economic impact on local communities.

Despite efforts by the National Steering Committee for Natural Disaster Prevention and Control to mitigate these effects, the risks remain significant. Government reports and expert analyses continue to highlight the extensive damage caused by these natural disasters.

Sources: ReliefWeb, ReliefWeb, Bao Chinh Phu

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6) Avoid properties with unclear land use rights in Vietnam to prevent legal issues common for foreign investors

Buying property in Vietnam can be tricky, especially if the land use rights are unclear.

The 2024 Land Law changes sound good for foreign investors, but they’ve actually made things more complicated. Now, foreign-invested enterprises face more complex land procedures, which can lead to legal headaches.

Many foreign investors have shared stories about the legal challenges they face because they don’t own the land outright. This makes it tough to transfer land use rights or make changes to their properties.

The Vietnamese government has warned about the risks of unclear land use rights. They remind everyone that land is public property managed by the state, which can cause disputes if not properly understood.

Even without specific data on fraud, the complicated land procedures suggest these issues might be common. Real estate agencies stress the importance of verifying land use rights to avoid legal troubles.

Experts say that while new rules let foreign enterprises acquire land use rights, careful management is crucial to avoid pitfalls.

Sources: Law Asia, ASL Gate, Vietnam Law Magazine

7) Partner with a local Vietnamese citizen to navigate legal complexities and cultural nuances effectively

Partnering with a local Vietnamese citizen can give you a significant advantage when navigating Vietnam's property market.

In recent years, foreign property ownership in Vietnam has been tricky. For example, foreigners can own up to 30% of residential apartments in a building, but this is capped per block in multi-block complexes. These rules can be a maze without local help.

Take a cue from Warburg Pincus's partnership with Vingroup. This collaboration not only involved a significant equity stake but also boosted Vietnam's real estate sector. Local partners are key to understanding and complying with these regulations, making the investment process smoother.

Cultural understanding is crucial in Vietnam. The market has its own quirks and trends, which can be tough for outsiders. Local partners can bridge these gaps, ensuring that foreign investments align with local market trends and preferences.

This cultural insight is invaluable for making informed business decisions. It helps avoid potential pitfalls and ensures that investments are in tune with what the Vietnamese market wants.

In short, having a local partner can be your secret weapon in Vietnam's property market. They help you navigate legal complexities and cultural nuances, giving you a competitive edge.

Sources: VnEconomy, Vietnam News, Kadence

10) Expect a slow, bureaucratic process in Vietnam, so patience and persistence are crucial when closing a property deal

Buying property in Vietnam requires patience and persistence due to its slow and bureaucratic legal process.

When you submit a registration dossier, the registry aims to process it within the same working day, but if it's late, it might roll over to the next day. In some cases, it can take up to three working days if there are valid reasons for delay.

In 2024, Ho Chi Minh City only approved 12 new housing projects, and no land was allocated for new developments, illustrating the sluggish pace of property transactions. This slow approval process can significantly impact the availability of new properties.

Foreign investors and expatriates often face delays too. From 2015 to 2023, only 52 out of 138 approved real estate projects in Ho Chi Minh City were launched, leaving many units in limbo. This situation underscores the importance of being patient when navigating Vietnam's property market.

These bureaucratic hurdles can be frustrating, but understanding the process helps. Knowing that the legal process can be slow and bureaucratic, patience and persistence are key when closing a deal.

Sources: Vietnam Briefing, BLawyers Vietnam, The Investor

11) Prepare for cash-based transactions in Vietnam’s real estate market, as traditional financing methods are less common

In Vietnam, real estate deals are mostly done in cash, even with new rules pushing for bank transactions.

There's a deep-rooted cultural habit of using cash in property sales, which means cash is still king in the market. Many expats and local agents will tell you that cash is the go-to method for buying property here.

Real estate agencies often point out that cash transactions are the norm. Arcadia Consulting, for instance, highlights how the property sector is growing faster than credit, showing a clear preference for cash over loans.

Getting a traditional loan can be tough, which is why many buyers stick to cash. Surveys and expert opinions back this up, noting the hurdles in securing financing through banks.

So, if you're thinking about buying property in Vietnam, be ready to deal in cash. It's a unique aspect of the market that you won't find in many other places.

Understanding this cash-based system is crucial, as it shapes how deals are made and what you can expect when entering the market.

Sources: Allen & Gledhill, The Investor, Arcadia Consulting

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investing in real estate foreigner Vietnam

12) Consider investing in off-plan properties in Vietnam, as locals often prefer new developments

Investing in off-plan properties in Vietnam can be a smart move because Vietnamese buyers often prefer new developments.

In 2023, there was a surge in demand for new apartments, especially among foreign buyers who chose off-plan purchases for better deals. This trend is driven by the appeal of securing properties at favorable prices before they are completed.

Modern amenities are a big draw for these new developments. Many residential complexes come with features like swimming pools, gyms, and playgrounds. For example, Vinhomes Central Park in Ho Chi Minh City offers top-notch services, including a private marina and shopping malls, making it a popular choice.

The Vietnamese government is also playing a role in this trend by supporting new developments. They've invested in road infrastructure, which makes it easier for foreigners to buy property. These efforts are part of broader policies to encourage the growth of new housing projects.

Credit incentives for social housing are another factor boosting new developments. These incentives are expected to continue, further supporting the construction of modern residential areas. This means more opportunities for investors looking to tap into the growing market.

Sources: Vietnam Real Estate, Vietnam Real Estate FAQ, The Investor

13) Consider properties with good feng shui in Vietnam, as they are more desirable and valuable due to cultural emphasis

In Vietnam, properties with good feng shui are becoming increasingly popular.

As we look ahead to 2025, there's a buzz around the real estate market, especially from the second to fourth quarters. Demand for feng shui-friendly properties is expected to surge, driven by their investment potential and the promise of price appreciation. This makes land and villas with favorable feng shui features particularly attractive to buyers.

Why the higher price tags? It's all about the perceived value. Homes with auspicious energy flow often command premium prices because many believe they bring good luck and prosperity. Buyers are willing to pay more for that extra bit of fortune.

When browsing real estate listings in Vietnam, you'll notice a common theme: feng shui attributes are front and center. Details like house orientation, room layouts, and auspicious elements such as indoor plants and specific color schemes are highlighted. This isn't just marketing fluff; surveys show that Vietnamese homebuyers have a strong preference for homes that align with feng shui principles.

It's interesting to note that Vietnamese culture places a strong emphasis on feng shui, so properties with good feng shui can be more desirable and valuable. This cultural aspect plays a significant role in shaping the real estate market.

Sources: Xinhua News, Vietlist, VOV World

14) Don't hesitate to negotiate property prices in Vietnam, as they are often flexible

In Vietnam, property prices are often negotiable, so don't hesitate to bargain for a better deal.

Back in 2023 and 2024, the Vietnamese real estate market was quite dynamic, with frequent fluctuations in property prices. These changes were largely due to shifts in government policies and the economic climate, which opened up opportunities for savvy buyers to negotiate.

Real estate agents in Vietnam are well-versed in the art of negotiation. They have a keen understanding of the local market, including current property trends and pricing. This expertise allows them to guide buyers in securing favorable terms, a practice that was widely reported in surveys and reports from that period.

Many property listings in Vietnam come with "negotiable" prices, signaling that buyers can often secure a better deal through bargaining. This reflects a cultural norm in Vietnam, where negotiation is a key part of business dealings, and maintaining a respectful demeanor is essential.

In Vietnam, building relationships is crucial during negotiations. This cultural aspect means that buyers who engage respectfully often find themselves in a better position to negotiate terms that suit them.

So, if you're considering buying property in Vietnam, remember that negotiation is not just accepted but expected. This approach can lead to significant savings and a more favorable purchase.

Sources: Savills Industrial, RUSSIN & VECCHI

infographics map property prices Vietnam

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Vietnam. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

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.