After ten years of gold rush, has the fire of Vietnamese real estate burned to an end, or is it about to simmer and boil out its true value?
If you are still looking at Vietnam through the eyes of five years ago, you are likely to misjudge the situation. The market is no longer the era of reckless pioneering and buying with closed eyes to make money, but has entered the “selected era” with clearer rules and more detailed opportunities and risks. The impetuous atmosphere of national speculation has faded, replaced by a more focused market heat supported by strong “rigid demand”.
For investors, this means a change in the rules of the game, the end of the past era of extensive and rainy dew, and a new hand that requires precise selection and a deep understanding of regional differences has begun.
The current situation of Vietnam’s housing market in 2025
Frankly speaking, it may not be accurate to describe the current Vietnamese property market as “full recovery”, and a more appropriate word is “structural bull market”. The heat of the market is highly concentrated, and Hanoi is undoubtedly the absolute protagonist of this round of market. According to data released by the Ministry of Construction and several market agencies (e.g., CBRE, Savills) from the end of 2024 to the beginning of 2025, the market presents several distinctive characteristics:
Hanoi is leading the way, and supply exceeds demand has become the norm: apartment prices in the capital market have risen staggeringly, with some new projects located in core areas or well-equipped facilities, with an annual increase of even 70%, which was unimaginable in the past. The market inventory has been almost emptied, and the supply side is seriously insufficient, forming a clear seller’s market.
Ho Chi Minh City recovers moderately, looking for opportunities in fluctuations: Compared to the heat of Hanoi, Ho Chi Minh City’s recovery pace is more moderate and volatile. The main focus of market transactions is on B-grade (mid-range) livable apartments and easily accessible downtown properties, showing that buyers are more rational and focus on actual residential value.
Regulatory reform injects a shot in the arm: The newly revised Land Law, Housing Law and Real Estate Business Law will gradually come into effect in 2025, greatly improving market transparency and protecting the rights and interests of home buyers, which is crucial for attracting cautious domestic and foreign funds.
Rigid demand has become the “ballast stone” of the market: especially in Hanoi, where the large young population, continuous urbanization and the desire of families to improve their living environment constitute extremely solid rigid demand. This is also the fundamental reason why Hanoi’s housing prices can remain strong and upward in the face of economic fluctuations.
Key Data Quick Facts (2024–Early 2025)
| Indicator items | Values/trends |
|---|---|
| Average price of apartments in Hanoi | Approx. 2,800–4,200 USD/㎡ (15–25% year-on-year increase, some projects are higher) |
| Average price of apartments in Ho Chi Minh City | Approx. 3,200–4,800 USD/㎡ (8–12% year-on-year) |
| The proportion of foreigners buying houses | Approx. 10–15% (depending on site and location) |
| Annual rental yield | 4–6% (up to 7% for high-end properties in Hanoi and Ho Chi Minh City) |
Summary: The market has changed from a general rise to a structural rise. Hanoi, due to its status as the capital, strong local rigid demand and severe supply shortages, is experiencing a round of domestic demand-driven revaluation, no longer the tepid market of the past. Ho Chi Minh City is more like a mature international market, gradually returning to a stable growth trajectory supported by foreign investment and high-end rental markets after adjustment.
Conditions and rules for foreigners to buy a house in Vietnam
Basic Regulations on Foreign Investment in Housing Purchases (2025 Edition)
| project | illustrate |
|---|---|
| Is it possible to buy it? | Yes, only for residential use (mainly apartments) |
| Is it possible to get a loan? | No, a one-time payment is required (funds must be legally remitted from overseas) |
| Object restrictions | No more than 30% of the number of units in each residential project shall be sold to foreigners |
| Land rights | Foreigners buy houses without land ownership, only 50 years of use, and can be renewed upon expiration |
| Is it available for rent? | It can be rented out legally and is subject to tax in accordance with the law |
| Is it available for resale? | Can be resold to foreigners or Vietnamese locals at a tax rate of about 2% |
| Property rights keywords | Be sure to look for the “Pink Book (Sổ hồng)”, which is the most complete apartment title certificate that foreigners can obtain; Before signing the contract, it is necessary to confirm that the developer has a successful record of processing |
Be sure to look for the “Pink Book (Sổ hồng)”. This is the most complete apartment title certificate that foreigners can obtain. Before signing the contract, it is necessary to confirm that the developer has a record of successfully applying for this certificate for foreigners.
Analysis of popular investment cities in Vietnam
Hanoi City
Hanoi has transformed from an elegant lady to a dynamic frontrunner. The rise in housing prices here is more driven by local upstarts and the middle class.
Popular Area: 西湖郡 (Tây Lake)、南慈廉郡 (Nam Tu Liêm)
- Investment logic: Supply is scarce, rigid demand is strong, and housing prices have risen first in the country.
West Lake County is a traditionally wealthy area with the largest freshwater lake in Hanoi, West Lake. The land development around West Lake is nearly saturated, and the supply is extremely scarce, making its real estate extremely resistant to decline and value preservation.
The tenant base is extremely high-quality (diplomats, executives of international organizations), with strong and stable rent payments. It is suitable for investors who pursue the ultimate value preservation of assets and stable high-quality tenants, and the owner-occupants who love cultural heritage and tranquil lake views.
Average Rental Return (IRR): 4–6%
胡志明市（Ho Chi Minh City）
As an economic center, Ho Chi Minh City’s rental market is more international and more mature. Although the house prices here are not as fierce as Hanoi, the rental returns are stable, making it an excellent choice for generating cash flow.
- Popular Areas: Thảo Điền, District 7 (Phu My Hung)
- Investment logic: There are many international schools and expatriate executives.
- Caotian District is synonymous with top-tier school district housing, with high-end Western restaurants, boutique cafes, art galleries and imported supermarkets, and is the preferred gathering place for European and American expatriate executives and international school families. The community atmosphere is westernized, fashionable and vibrant.
- The Phu My Xing community in District 7 is known for its excellent planning and environmental safety, with large parks, artificial lakes and wide boulevards, and extremely comfortable living. It is favored by families in Japan, South Korea, Hong Kong and Taiwan.
- Average rental return: 4.5–6.5%
Da Nang City
Da Nang City (Da Nang) is known as Vietnam’s “digital nomad” mecca, and the real estate investment logic here is completely different, more inclined to tourism real estate. With the world-famous My Khe Beach, Ba Na Hills resort and the golden tourist corridor connected to Hoi An Ancient Town, Da Nang attracts a large number of international tourists and expatriates every year.
Since tourism and resort economy are the core industries of Da Nang, local real estate investment is more focused on serviced apartments (condotels), holiday villas and short-term rental apartments, emphasizing cash flow returns rather than long-term appreciation.
Unlike economic centers such as Hanoi and Ho Chi Minh City, home buyers in Da Nang mostly aim for short-term rental, vacation and self-use, and the market is more volatile, but the rental return rate is extremely high during the peak tourist season.
Popular areas: along the Han River, around My Khe Beach Investment logic: The base period of housing prices is low, the cost of living is pleasant, and the main strategy is to obtain high returns for short-term rentals. However, attention should be paid to the impact of the off-peak tourist season on income.
Average rental return: 6–8% (seasonally fluctuating)
The investment value of the living environment
Ho Chi Minh City: The vitality and convenience of a cosmopolitan city, this is Vietnam’s most cosmopolitan city, with a fast-paced life and full of opportunities. For expatriate families and business owners, there are top international schools, private hospitals comparable to developed countries, and a wide variety of dining and entertainment options.
Living in Caotian District or Phu Mei Xing is equivalent to choosing a seamless international living circle for your family, which is the core competitiveness of attracting high-end tenants.
Hanoi: The cultural heritage and leisure of a thousand-year-old ancient capital Compared with the commercial atmosphere of Ho Chi Minh City, Hanoi has more cultural precipitation and calmness. Strolling along the shores of Hoan Kiem Lake or spending an afternoon at a café by West Lake can feel the unique charm of the city. For those who pursue quality of life and love history and culture, Hanoi offers a more in-depth living experience.
This unique urban temperament has attracted a large number of diplomats, scholars and cultural practitioners, forming a stable and high-quality rental customer base.
Da Nang: Facing the sea, low-cost and high-quality life represents another ideal. It has a coastline known as “one of the most beautiful beaches in the world”, excellent air quality, and the cost of living is much lower than that of the two core cities. For digital nomads, freelancers, and people seeking a second home for retirement, Da Nang offers the possibility of “living better with less.”
Investing vs owner-occupancy
| category | Suitable area | Evaluate the focus |
|---|---|---|
| Long-term investment (see value-added) | Nam Tra Lien district, Hanoi, and Xinxin district, Thu Duc city, Ho Chi Minh City | Future infrastructure, MRT planning, and industrial development potential |
| Rent collection type (depending on cash flow) | Cao Tian district, Ho Chi Minh City, West Lake district, Hanoi | Stable demand from foreign tenants, quality of community management, ease of renting |
| Short-term rental type (see the return rate) | Da Nang, Nha Trang, Phu Quoc Island | Tourist traffic and short-term B&B regulations restrictions (some have gray areas) |
| Self-occupied type (depending on life) | District 7, Ho Chi Minh City, West Lake District, Hanoi | Surrounding living functions, medical and educational facilities, community environment and safety |
Note: Vietnam still prohibits foreign investment from directly purchasing “single-family villas”, and the vast majority of commercial housing that foreigners can buy is high-rise apartments.
Our view on future housing price trends in Vietnam
In the next few years, Vietnam’s real estate market is expected to enter a new stage of steady repair and structural differentiation. At the macro level, the central bank continues to guide loan interest rates downward, and the new version of the Land Law will be officially implemented in 2025, which will bring a more transparent land pricing mechanism and a more efficient project approval environment. On the demand side, it is driven by the recovery of tourism, the expansion of foreign manufacturing and the process of urbanization, supporting the diversified development of residential, tourism real estate and industrial real estate.
In terms of sub-sectors, Hanoi and Ho Chi Minh City, as the dual core of the country, the residential and office markets are gradually picking up under the decline in interest rates and the promotion of infrastructure, especially the first-tier areas and projects along the rail transit line are more resilient. Tourist cities such as Da Nang and Nha Trang are dominated by short-term rental and resort assets, and the investment logic focuses on cash flow returns, but also needs to pay attention to seasonal fluctuations and operational capabilities. At the same time, industrial corridors such as Bac Ninh, Hai Phong, Binh Duong, and Dong Nai are still hot spots for foreign investment, and the high occupancy rate of standard factories and warehouses shows strong demand.
Overall, Vietnam’s real estate market in 2025-2027 will show a pattern of “favorable policies + structural differentiation”. Core cities and industrial parks have long-term growth resilience, while tourism real estate is more inclined to flexible cash flow investment. For investors, grasping regional positioning, asset types and management capabilities will be the key to determining future returns.
Data Sources
- MoC of the Ministry of Construction of Vietnam – Official Quarterly Real Estate Market Report
- General Statistics Office of Vietnam GSO – Foreign Investment and Macroeconomic Data
- CBRE Vietnam – Condominium Market Analysis
- Savills Vietnam – Regional & Market Report
- Batdongsan – Vietnam’s mainstream real estate platform, listing and transaction data