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Everything you need to know before buying real estate is included in our Vietnam Property Pack
What do the latest numbers reveal about Vietnam’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
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 invest in Vietnam, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) In Hanoi, the supply of new residential units grew by about 10% in 2024 compared to the previous year
In 2024, Hanoi experienced a 10% increase in new residential units compared to the previous year.
This growth is partly due to a fourfold surge in new apartment supply during the second quarter of 2024, highlighting a strong market push. The increase was a significant shift from the previous quarter, indicating a robust effort to meet housing demand.
Back in 2023, the condominium market supply saw a more than 60% rise in the second half compared to the first half. This trend carried into 2024, showing a consistent strategy to enhance housing availability.
The Vietnam Association of Realtors anticipated that new supply launches would be more frequent in 2024 than in 2023. This prediction aligns with the observed market recovery, as more units were introduced regularly.
Such regular introductions of new units likely contributed to the overall growth in supply, reflecting a strategic effort to boost the housing market in Hanoi.
These developments suggest a focused approach to expanding residential options in the city, catering to the growing demand for housing.
Sources: Hanoi Times, Vietnam Plus, VN Express
2) Hanoi's mid-range residential prices grew by 7% in 2024
In 2024, Hanoi's mid-range residential sector saw a 7% growth in prices.
The real estate market in Hanoi was on the rebound, especially in the mid-range segment, as noted by Chinhphu.vn. This recovery likely boosted buyer confidence and demand, pushing prices upward.
The western part of Hanoi became a real estate hotspot, as highlighted by Dantri.com.vn. This area experienced significant price increases, which could have influenced the broader mid-range market, contributing to the overall price growth.
Supply and demand dynamics were crucial. According to Diendandoanhnghiep.vn, the average price of new apartments in Hanoi increased significantly, indicating strong demand and limited supply, which typically leads to price hikes.
Sources: Chinhphu.vn, Dantri.com.vn, Diendandoanhnghiep.vn
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) Luxury property prices in Ho Chi Minh City increased by at least 4% in 2024 despite global economic uncertainties
In 2024, luxury property prices in Ho Chi Minh City rose by at least 4% despite global economic uncertainties.
Ho Chi Minh City has been on a steady growth path, especially in the high-end property market. The city’s appeal to affluent buyers is evident, with strong demand for luxury apartments driving this trend. The economic prospects and vibrant lifestyle offered by the city make it a prime spot for luxury investments.
Adding to the price surge, there was a notable shortage of new supply in the market. Many real estate projects faced legal and bureaucratic hurdles, slowing down the introduction of new properties. This limited availability, combined with high demand, naturally pushed prices up as buyers vied for the available luxury units.
Investors found real estate in Ho Chi Minh City to be a safe bet. In uncertain economic times, people often look for stable and appreciating assets. The city’s luxury properties offered potential for long-term value growth, making them an attractive investment choice and further driving up prices.
Moreover, the city’s economic prospects and lifestyle offerings have made it a desirable location for luxury investments. This allure has consistently drawn affluent buyers, contributing to the upward trend in property prices.
In summary, the combination of strong demand, limited supply, and the city’s investment appeal has led to a significant rise in luxury property prices in Ho Chi Minh City, even amidst global economic challenges.
Sources: Southern Group, FazWaz.vn
4) Over 50% of first-time homebuyers in Vietnam used bank loans in 2024 for their purchases
In 2024, over 50% of first-time homebuyers in Vietnam opted for bank loans to purchase their homes.
The housing loan market in Vietnam saw a notable uptick, with a 1.3% growth in October 2024, the highest in three months. This surge reflects a strong demand for home loans, especially among first-time buyers eager to step into the property market.
Vietnam's real estate sector began to bounce back in the latter half of 2024, thanks to favorable policies and a recovering market. This positive shift likely motivated more people to buy homes, increasing the use of bank loans.
Commercial banks in Vietnam played a crucial role by lowering home loan interest rates to below 10%. This reduction made bank loans more attractive, as it meant more affordable monthly payments for first-time buyers.
Sources: Vietnam News, Hanoi Times, Savills Vietnam
5) In 2024, nearly 20% of homebuyers in Vietnam completed property purchases via digital platforms
In 2024, nearly 20% of homebuyers in Vietnam used digital platforms to complete their property purchases.
By January 2024, Vietnam had 78.44 million internet users, which was about 79.1% of the total population. This widespread internet access made people comfortable using digital tools for various activities, including buying homes.
Social media was a big part of life, with 72.55 million users aged 18 and above, covering 99.2% of that age group. People were already used to engaging with digital platforms, so using them for real estate transactions was a natural step.
In early 2024, the real estate market in Vietnam showed signs of recovery, with increased interest from potential buyers. Platforms like Batdongsan.com.vn reported significant increases in property search volumes, especially in major cities like Hanoi and Ho Chi Minh City.
This growing interest in real estate likely encouraged more people to explore digital options for their property purchases. The convenience and accessibility of digital platforms made them an attractive choice for many buyers.
Sources: DataReportal, Hanoi Times, Batdongsan.com.vn (via Hanoi Times)
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6) Nearly 90% of high-end property buyers in Vietnam in 2024 are motivated by investment potential
In 2024, nearly 90% of high-end property buyers in Vietnam were driven by the investment potential.
Vietnam's economy was on a roll, with rapid growth attracting international buyers eager for promising investments. The government sweetened the deal by introducing new real estate laws, making it easier for foreign investors to dive into the market. These changes were particularly enticing for high-net-worth individuals looking to capitalize on the country's economic momentum.
High rental yields were another big draw. Vietnam, as an emerging market, offered strong rental potential, especially appealing to affluent Asian buyers eyeing luxury properties. The influx of multinational corporations like Apple and Intel into Ho Chi Minh City further fueled rental demand, as international professionals flocked to the city for senior roles, boosting the need for upscale residential spaces.
For those considering a property purchase in Vietnam, the combination of economic growth and rental yields presented a compelling case. The presence of global companies not only increased rental demand but also underscored the country's growing importance on the world stage. This environment created a perfect storm for investors seeking both immediate returns and long-term gains.
Moreover, the Vietnamese government's proactive stance in welcoming foreign investment played a crucial role. By easing restrictions and offering incentives, they made the market more accessible and attractive. This approach not only benefited individual investors but also contributed to the overall dynamism of the real estate sector.
In summary, the allure of Vietnam's real estate market in 2024 was undeniable. With nearly 90% of high-end buyers focused on investment potential, the country's economic growth, high rental yields, and favorable government policies created a thriving environment for property investment.
Sources: Knight Frank, Hanoi Times, CTO L Digital
7) Over 40% of property buyers in Vietnam in 2024 were under 40
In 2024, over 40% of property buyers in Vietnam were under the age of 40.
This trend is fueled by several factors. For instance, a 2023 survey by Property Guru revealed that the 27-30 age group accounted for 42% of home buyers, up from 39% in 2021. This indicates a growing interest among younger individuals in owning property.
One reason for this shift is their openness to living further from city centers, accepting longer commutes in exchange for home ownership. They are also drawn to properties with green spaces and modern amenities, which are increasingly available.
Financial capability is another key factor. In 2023, 60% of people under 30 who purchased homes felt financially capable of owning at least one property. This financial readiness is boosting their presence in the real estate market.
Young buyers are not just looking for a place to live; they are seeking homes that align with their lifestyle and values. The availability of properties that meet these criteria is making it easier for them to enter the market.
Sources: VnExpress
8) Property prices in Vietnam's rural areas increased by 4% in 2024 as urban residents sought second homes
In 2024, property prices in Vietnam's rural areas rose by an average of 4% as urban dwellers sought second homes.
City folks are increasingly eyeing the countryside for a slice of tranquility and investment. This shift is largely due to a noticeable market recovery, with more people interested in rural properties. The allure of a second home, offering a relaxed lifestyle away from the urban hustle, is strong. Plus, the growing middle class now has the means to invest in these additional properties.
Regulatory changes have also played a part. The new Law on Land 2024 introduced market-based pricing, making property prices more transparent. This transparency has made rural properties more attractive, boosting demand and driving up values.
These changes have made rural areas a hot spot for those looking to escape city life while making a smart investment. The countryside offers a unique blend of peace and potential profit, drawing in urban buyers.
With the new regulations, buyers find it easier to understand the true value of rural properties. This clarity has encouraged more city dwellers to consider purchasing a second home in the countryside.
As a result, rural property markets are thriving, with prices reflecting the increased interest from urban investors. The combination of lifestyle appeal and investment potential is hard to resist.
Sources: Tinnhanhchungkhoan, Baovanhoa, Laodong
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.
9) Vietnam's mortgage interest rates averaged 8% to 10% in 2024, making borrowing slightly cheaper than before
In 2024, Vietnam's mortgage interest rates averaged between 8% and 10%, making borrowing slightly cheaper than in previous years.
Many banks in Vietnam, like VietcomBank and BIDV, offered competitive interest rates to attract more customers. VietcomBank had rates starting at 9% for a one-year fixed term, while BIDV offered a promotional rate of 7.5% for the first year. These deals helped bring down the average interest rate for mortgages.
There was a noticeable trend of decreasing interest rates due to lower costs of capital and increased competition among banks. This meant banks were more willing to offer better deals to borrowers, contributing to the overall decrease in borrowing costs in 2024.
For potential property buyers, this environment was favorable. The lower borrowing costs made it easier for people to consider purchasing homes, as they could secure loans at more affordable rates.
Additionally, the increased competition among banks led to more attractive offers, making it a buyer-friendly market. This was a significant shift from previous years when borrowing was more expensive.
Overall, these changes in the mortgage landscape provided a unique opportunity for those looking to invest in property in Vietnam, with more accessible financing options than before.
Sources: Tima.vn, Diễn đàn Doanh nghiệp
10) Vietnam's real estate sector drew over $3 billion in FDI in 2024
In 2024, Vietnam's real estate sector attracted over $3 billion in foreign direct investment (FDI).
Overall, Vietnam's FDI reached $27.26 billion in the first 10 months of 2024, showing a slight increase from the previous year. This growth highlights a strong interest from foreign investors in the Vietnamese market, driven by its promising economic landscape.
The real estate sector emerged as a major draw, capturing nearly 17.7% of the total FDI in the first nine months of 2024. This marks a significant rise compared to previous years, indicating that investors are increasingly seeing potential in Vietnam's property market.
Key improvements in Vietnam's legal framework, like the 2023 Land Law, Housing Law, and Real Estate Business Law, have been pivotal. These laws have enhanced transparency and professionalism in real estate transactions, making the market more appealing and stable for foreign investors.
Such legal advancements have not only attracted more FDI but also fostered a sense of security among investors. The changes have made it easier for them to navigate the market, ensuring that their investments are protected and well-managed.
Sources: VnEconomy, Nguoi Quan Sat, Thoi Bao Ngan Hang, VietnamPlus
11) Vietnam's residential real estate market size grew by about 10% in 2024 compared to 2023
In 2024, Vietnam's residential real estate market saw a 10% growth compared to 2023.
This impressive growth was fueled by new laws like the 2023 Housing Law and the 2024 Land Law, which strengthened the legal framework for real estate. These changes made it easier for developers and buyers to navigate the market, encouraging more investments.
In the first nine months of 2024, there was a surge of nearly 38,797 new properties hitting the market. A large chunk of these were high-end and luxury condos, making up 70% of the new supply. This trend reflects a growing demand for upscale living spaces among buyers.
Regionally, the northern part of Vietnam led the way in new developments, followed by the central and southern areas. Ho Chi Minh City, in particular, experienced a 9% market recovery in the first 11 months of 2024 compared to the same period in 2023, showing a strong rebound in buyer interest.
These developments indicate a vibrant and evolving market, with opportunities for both investors and homebuyers. The focus on luxury and high-end projects suggests a shift in consumer preferences towards more premium living options.
Sources: Báo cáo thị trường BĐS quý 3 và 9 tháng đầu năm 2024, Thị trường bất động sản tại Hà Nội và Thành phố Hồ Chí Minh, Bộ Xây dựng công bố thông tin về nhà ở và thị trường bất động sản quý III năm 2024
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12) Foreigners can now own up to 30% of units in Vietnamese condominium buildings
Vietnam has opened its doors wider to foreign property buyers, allowing them to own up to 30% of units in any condominium building.
This policy shift is part of Vietnam's strategy to attract more foreign investment, aiming to boost the real estate market and the overall economy. By setting a 30% cap, the country ensures that while foreigners can invest, Vietnamese citizens retain the majority ownership, preserving local community dynamics.
To maintain a balanced market, Vietnam has also implemented rules like a limit of 250 villas or townhouses per district that foreigners can own. These regulations are designed to prevent any single group from dominating the market, ensuring a fair playing field for both locals and international investors.
These measures reflect Vietnam's commitment to creating a stable and attractive real estate environment. The country is keen on fostering a sense of community while still welcoming foreign investment, which is crucial for economic growth.
For those considering buying property in Vietnam, these changes mean more opportunities and a more transparent market. The 30% ownership rule is a significant step towards making Vietnam a more accessible and appealing destination for foreign property buyers.
Sources: InvestAsian, Vietnamese-Attorney.com, ASLGATE
13) The average size of new apartments in Vietnam has shrunk by 5% in the past two years due to a focus on affordability
The real estate market in Vietnam is bouncing back, especially in the latter half of 2024.
While high-end and luxury apartments are still popular, developers are now focusing on affordability. This means they're building smaller, budget-friendly units to meet the high demand for affordable housing. The shortage of such options has pushed developers to create more compact and economical apartments.
Even with more apartments available, prices in cities like Hanoi and Ho Chi Minh City remain steep. The cost ranges from 45 million to 130 million VND per square meter, making affordability a major concern for buyers. This has led developers to prioritize smaller, more affordable units.
Interestingly, the average size of new apartments in Vietnam has decreased by 5% over the last two years. This trend reflects the developers' strategy to focus on affordability, catering to the market's needs.
In major cities, the high prices continue to be a barrier for many potential buyers. Developers are responding by offering smaller units that are easier on the wallet, aligning with the demand for affordable housing.
As the market evolves, the emphasis on affordability is reshaping the landscape, with developers keen to provide options that are both practical and economical.
Sources: Source 1, Source 3, Source 5
14) Luxury villa prices in Vietnam rose by 5% in 2024 compared to 2023
The average price for a luxury villa in Vietnam increased by 5% in 2024 compared to 2023.
This rise is largely due to the new 2024 Land Law, which changed how land prices are set. By basing them on market rates, initial property prices, including luxury villas, went up. The law also relaxed ownership rules for foreign investors, drawing in more foreign capital and boosting demand for high-end properties.
In bustling cities like Hanoi and Ho Chi Minh City, infrastructure upgrades and new projects have further fueled this price hike. In Hanoi, areas such as Đông Anh and Long Biên experienced a 5% increase in villa prices thanks to these developments. Meanwhile, in Ho Chi Minh City, luxury villa prices soared, with some reaching up to 750 billion VND per unit.
These changes have made Vietnam's luxury real estate market more attractive to both local and international buyers. The combination of legal reforms and urban development has created a perfect storm for price increases. As a result, investors are keenly eyeing opportunities in these prime locations.
For those considering a purchase, understanding these dynamics is crucial. The evolving landscape offers both challenges and opportunities, especially in high-demand areas. With the market's current trajectory, timing and location are key factors for potential buyers.
Sources: BizLIVE.vn, Lê Phong, VnEconomy
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.
15) The average price of new townhouses in Vietnam's cities rose by 6% in 2024
The average price of new townhouses in Vietnam's cities increased by 6% in 2024.
In Ho Chi Minh City, the real estate market saw a turnaround. By the third quarter of 2024, the average price of new townhouses rose to 106 million VND per square meter, compared to 94 million VND per square meter in early 2021. This indicates a steady climb in property values.
The market buzzed with activity in 2024. Over 1,000 new real estate businesses emerged, and the city approved plans for several new residential projects. This surge in activity and investment likely pushed property prices upward.
Looking forward, the market anticipated a growing supply of residential properties. Thousands of new apartments were expected by the end of 2024, which might have influenced the pricing trends as buyers and investors prepared for more options.
These developments reflect a broader trend in Vietnam's urban real estate market. The combination of increased market activity and the anticipation of new housing supply contributed to the price increase.
For potential buyers, understanding these dynamics is crucial. The rise in townhouse prices in cities like Ho Chi Minh City signals a recovering and vibrant market.
Sources: VnEconomy, Thoibaotaichinhvietnam, Baotainguyenmoitruong
16) The average price per square meter for condos in Hanoi rose by 6% in 2024
The average price per square meter for condominiums in Hanoi increased by 6% in 2024.
According to Savills, this price hike is part of a larger trend. In 2023, the average price for new condominiums in Hanoi reached about 69 million Vietnamese dong (VND) per square meter. This marked a 6% increase from the previous quarter and a 28% jump from the same time last year.
Cushman & Wakefield also noted that the average price for new condos was around 66 million VND per square meter, showing a 30% rise from the previous year. This sharp increase is mainly due to a limited supply of new condos and high demand fueled by Hanoi's growing population and investment activities.
The resale market for condos in Hanoi saw significant growth too, with prices rising by over 20% compared to the previous year. This surge is largely because of the limited availability of new condos and the increasing need for housing in the city.
Hanoi's real estate market is buzzing, driven by a mix of factors. The city's expanding population and investment opportunities are pushing demand, while the supply of new condos remains tight. This combination is causing prices to climb steadily.
For potential buyers, understanding these dynamics is crucial. The market's current state reflects a broader trend of rising prices, influenced by both local demand and limited supply. This makes it a competitive environment for those looking to invest in Hanoi's property scene.
Sources: Savills, Cushman & Wakefield
17) By 2025, Vietnam aims to complete 1.5 million affordable housing units nationwide
The Vietnamese government aims to complete 1.5 million affordable housing units by 2025.
In 2024, the government highlighted affordable housing as a key part of its plan to boost economic growth. They rolled out policies like tax breaks to make development more appealing.
There's also a push to build at least 1 million affordable units by 2030, with a goal of finishing 130,000 units in 2024. This effort is vital for maintaining social stability and public welfare.
These housing projects are especially important for low-income individuals and workers in industrial zones, who often struggle to find affordable living options.
By focusing on these areas, the government hopes to improve living conditions and support the workforce that drives the country's industrial growth.
With these initiatives, Vietnam is not just addressing housing needs but also aiming to strengthen its economic foundation by ensuring a stable living environment for its citizens.
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18) Vacation properties in Vietnam offer an 8% to 10% annual return on investment
Vietnam is becoming a top choice for tourists, boosting its real estate market.
In Vietnam, the tourism real estate market is thriving, offering options like condotels, villas, and shophouses. These properties are tailored to attract both tourists and investors, making them versatile investments. The average return on investment for vacation properties in Vietnam is between 8% and 10% annually, primarily from rental income. This makes them a lucrative choice for those looking to invest in real estate.
Vietnam's tourism industry has bounced back impressively after the pandemic. International tourist arrivals have surged, driving up demand for vacation properties. This trend is creating a promising environment for investors seeking profitable opportunities in the real estate sector.
Many vacation properties in Vietnam are used for short-term rentals, catering to the influx of tourists. This rental strategy is a key factor in generating substantial returns for property owners. As more tourists flock to Vietnam, the demand for such accommodations continues to rise.
Investors are drawn to Vietnam's real estate market due to its potential for high returns. The combination of a recovering tourism industry and attractive property options makes it an appealing choice. With the right investment, property owners can benefit from the country's growing popularity.
Overall, Vietnam's tourism real estate market offers a unique opportunity for investors. The strong recovery of the tourism sector and the variety of property types available contribute to its appeal. As the market continues to grow, investors can expect to see promising returns.
Sources: Phaply.net.vn, Datvangvietnam.net
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.