As Southeast Asian countries grow in popularity, more and more foreign buyers are thinking about how to make money on real estate in Vietnam. The republic has good potential due to stable economic growth rates and a rapidly developing market. Let’s look at how to choose promising real estate and what kind of income you can expect.
Content:
- Market prospects in Vietnam
- Best cities in Vietnam to invest
- Real estate market in Vietnam
- Real estate prices in Vietnam
- Long-term rentals in Vietnam
- Short-term rentals in Vietnam
- How to choose a promising property in Vietnam
Market prospects in Vietnam
Is it possible to earn money buying real estate in Vietnam today? The answer to this question directly depends on the state of the local market. The annual rate of home value growth between 2023 and 2028 is expected to be 1.46%, resulting in a market size of $4.14 trillion. This year, it is projected to reach $3.85 trillion.
Here are the main trends:
- Rising home prices. It is due to high demand and increasing rates of mortgage in Vietnam.
- Expanding geography of residence. With the development of transport infrastructure, an increasing number of buyers are choosing quiet suburbs rather than the central areas of noisy cities. The shift toward suburban areas is fuelled by better home prices and people seeking more space. This is a convenient option if you work remotely.
- Growing demand for rental properties. It is especially evident in urban areas.
The republic is rapidly developing in various sectors, including construction and real estate, with great potential among the economies of Southeast Asia. The country is expected to continue its quick growth in the coming years. The outlook for the residential property market is optimistic due to continued economic growth, urbanisation, and mega-projects in major cities such as Ho Chi Minh City and Hanoi.
Best cities in Vietnam to invest
When analysing how to make money from real estate, it is important to choose not only a suitable property but also a location. Large cities and tourist areas are the most attractive. Popular regions include:
- Hanoi. The capital of the republic, which is also a scientific, technical, and cultural centre. Real estate is in constant demand here and tends to go up in price. In 2022 alone, price growth reached 23%.
- Ho Chi Minh City. A large and rapidly developing metropolis. It ranks among the top 10 APAC cities with the best investment prospects.
- Nha Trang. A popular tourist destination known for its vibrant nightlife and beautiful beaches.
- Da Nang. Another resort where you can buy premium housing.
These are just a few areas worth considering for investing in real estate in Vietnam. On our website, you can explore current offers in all regions of the country.
Real estate market in Vietnam
Property in Vietnam includes apartments and villas. Overseas buyers can acquire them through a long-term lease, which lasts up to 99 years. Up until 2014, expats could own a maximum of one property and use it as their own residence. With the liberalisation of legislation, the situation has changed.
The apartment segment occupies the largest share of the residential real estate market, accounting for about 90% of offers. According to analysts, it will fully recover from the pandemic from mid-2024 given that market difficulties are overcome. According to Savills Vietnam’s 2022 report, Hanoi is expected to have around 79,000 apartments for sale between 2022 and 2025, meeting almost half of the demand, while in Ho Chi Minh City, the figure will exceed 145,000 units.
The supply will become more diverse, while the number of luxury apartments is projected to continue to grow. This trend is especially relevant for projects implemented by reputable developers in large cities and prestigious areas. This is ensured by an advantageous geographical location and potentially higher income from the rental business in Vietnam.
When it comes to the villa segment, analysts do not expect any drastic changes. However, transactions with villas in Vietnam are projected to increase between 2023 and 2025. Attracting foreign home buyers will make the townhouse and villa segment more dynamic. Resort and coastal housing has the most favourable forecasts.
Real estate prices in Vietnam
The country offers housing tailored for different budgets. Even within the same city, you can see totally different prices. For example, at the time of publication of this article, a 2-bedroom apartment worth $11,000 is for sale in Ho Chi Minh City. Meanwhile, a residence with a similar area and number of bedrooms is offered at $468,000. Premium apartments cost up to $1 million and above. 2-3-bedroom townhouses start at $85,000. A modern villa can be purchased for $500,000.
Long-term rentals in Vietnam
The average rate of return on housing is 4% per year. In Hanoi and Ho Chi Minh City, it can reach 6%. However, this does not mean that the figures are universal for all properties. The size of rental income in Vietnam is influenced by the location of the apartment or house and amenities included in the residential complex. Studio rent ranges from $150 to $200 per month. In Hanoi and Ho Chi Minh City, prices are higher and start at $250. For this amount, you can rent out not only an apartment but also a small townhouse. Property maintenance in Vietnam is not included in the rent.
Foreigners are not prohibited from renting out housing. However, this can only be done in compliance with the current legislation and subject to payment of all necessary taxes and duties. Otherwise, it will not be possible to transfer earned profits to your home country, since you will be required to prove the source of income.
Short-term rentals in Vietnam
Rentals that last less than 12 months are considered short-term. This format is more promising compared to long-term agreements. Rental agencies note that a serviced apartment in District 2 in Ho Chi Minh City can generate $700–800 per month on a long-term lease, but that income can rise to $1,000 per month if rented out short-term with an 80% monthly occupancy rate. So, can you really earn on real estate in Vietnam? These figures allow us to give a positive answer to this question.
How to choose a promising property in Vietnam
Our website contains offers from developers and local agencies. It’s easy to explore the local market and figure out whether you can make money investing in real estate in Vietnam. The database is regularly updated and offers only current information. Our specialists will help you choose the best property for investment or relocation. Start choosing an apartment in Vietnam right now!