Vietnam Global Market Insights - Vietnam

Vietnam has one of the fastest-growing economies in Asia, powered by export-oriented manufacturing and rising domestic consumption. With a population of over 100 million and a homeownership rate exceeding 90%, domestic housing demand is enormous and unlikely to go away anytime soon.

This young, urbanizing population creates a resilient base for both end-user and rental demand. It's a country where owning a home is deeply ingrained in the culture, creating a uniquely stable floor for the market.

For years, investing in Vietnam felt like the Wild West; the rules were confusing, and transparency was lacking. That's all changing. In 2025, a powerful trio of new laws, the Land Law, Housing Law, and Law on Real Estate Business, is coming into full effect, and the reform momentum is palpable.

Let's say a developer, "A," wants to build a new apartment complex. Before these new laws, the official value of the land was set by a rigid government price list updated only every five years, creating a significant gap between the official and market prices. Now, the new Land Law mandates that land prices be updated annually to reflect their actual market value. This is a monumental step towards transparency, ensuring fairer transactions and reducing the risk of hidden costs and speculative pricing.

These reforms are designed to streamline project approvals, clarify foreign ownership rights, and demand more accountability from developers. According to Kiet Vo of CBRE Vietnam, these changes are creating a "legal corridor and a favorable premise for the next market period," thereby building a safer, more predictable environment for investors.

Vietnam's economy grew by an impressive 7.09% in 2024 and kicked off 2025 with strong momentum, expanding 7.52% in the first half of the year, driven by a 9.2% surge in industrial output. This positions it among the world's fastest-growing economies. While different organizations have slightly different predictions due to global uncertainties, the overall picture remains incredibly positive.

Here’s a quick look at the 2025 GDP growth forecasts from major institutions:

Foreign Direct Investment (FDI), money from foreign companies investing in Vietnam, is pouring into the country. In 2024, disbursed FDI reached a record high of US$25.4 billion. This momentum has continued into 2025, with realized FDI hitting 11.7 billion in the first half of the year, the highest H1 figure in five years.

Crucially, real estate consistently ranks among the top three sectors attracting this capital. This is not just through direct project development; Mergers & Acquisitions (M&A) are increasingly popular.

For instance, the first half of 2025 saw major deals like CapitaLand's US$553 million acquisition of a project from Becamex IDC and Nishi Nippon Railroad's purchase of a 25% stake in Nam Long's Paragon Dai Phuoc project. This signals deep confidence from sophisticated international players.

There's a clear divergence between the country's two largest markets. IQI Vietnam describes it as a "northern revival; southern depth." This means Hanoi is experiencing a sharp recovery driven by supply shortages, while HCMC offers a deeper, more mature rental market and attracts more international buyers.

Hanoi is currently in an intense growth phase. With fierce demand clashing with minimal new supply, prices are soaring. In late 2024 and early 2025, apartment prices shot up by a staggering 22.3% to 36% year-on-year. The market's momentum is undeniable. In a rush to meet this demand, developers doubled the new apartment supply to around 7,100 units in Q2 2025.

This surge in new launches has kept prices at new highs, with expert reports for the first half of 2025 placing the average primary asking price for new apartments between US$2,836 and US$3,284 per square meter. This significant price level reflects both the scarcity of available land and the high quality of new projects entering the market.

While Hanoi booms, HCMC's story is one of stabilization and significant supply constraints. The market saw only 350 condominium units launched in the early months of 2025. Legal bottlenecks have delayed many projects, though authorities are making "notable improvements" in resolving them.

Approximately 38,000 apartments are expected to finally receive their title deeds ("pink books") in 2025, a move that will help restore buyer confidence. Investor interest is now shifting to the city's western region and neighboring provinces, such as Long An, where large-scale urban township projects are set to launch.

At-a-Glance: Hanoi vs. HCMC:

While monthly prices can be volatile, the long-term trend in Vietnam is undeniably upward. Proprietary data from IQI Global, tracking average net property prices from January 2023 to October 2025, shows significant monthly fluctuations but a clear, positive long-run trendline. This data illustrates that while there are corrections, the market has consistently grown over a multi-year horizon, providing a valuable benchmark for investors setting their expectations.

Furthermore, transactional data from 2019 to 2025 underscores the market's growing scale. In 2025 alone, over 1,093 new project units were sold for a total value exceeding RM 1.6 billion.

While residential markets fluctuate, HCMC’s prime retail space is proving to be a landlord’s dream. According to Dustin Trung Nguyen, Head of IQI Vietnam, retail occupancy in HCMC is near 100%, even as rental rates hit record highs

Prime malls in District 1, like Saigon Centre and Diamond Plaza, are nearly full. This intense demand has pushed retail rents in District 1 to a staggering US$275-300 per square meter per month as of Q3. In the office market, there's a clear "flight to quality," with strong absorption of newly completed Grade A buildings. In Q1 2025 alone, over 4,000 square meters were leased in new Grade A buildings as tenants relocate for higher quality and better services.

Vietnam's industrial land market remains the darling of foreign investors. In southern Vietnam, the industrial land market maintained a stable 89% occupancy rate in Q1 2025. The ready-built factory and warehouse segments saw occupancy rates climb to 89% and 72% respectively, up 3 and 14 percentage points year-on-year. This highlights the relentless demand from manufacturers and logistics companies shifting their supply chains to Vietnam.

Vietnam's rapid economic development has translated into remarkable capital gains for long-term property investors. While past performance is no guarantee of future results, the historical data reveal a market with explosive growth potential.

In Hanoi, the market has been exceptionally hot. Over the past five years, property prices surged by an astonishing 112%. More recent data from 2024-2025 shows year-on-year increases for new apartments as high as 36%, fueled by intense demand meeting limited supply.

Ho Chi Minh City has also shown strong long-term performance, with new apartment prices appreciating 52% over five years, even with a recent market correction.

A fascinating trend highlighting this value shift is that high-end apartments in prime locations are now rivaling, and sometimes even surpassing, the price of traditional landed houses nearby.

For example, an 85-square-meter apartment at The Metropole in HCMC’s An Khanh ward is selling for VND 130-180 million (US$4,925-6,820) per square meter. Incredibly, this is more expensive per square meter than an 80-square-meter private house in the nearby Thao Dien Ward, which costs around VND 150 million per square meter.

This demonstrates a clear market shift towards valuing the modern amenities, security, and lifestyle offered by integrated condominium developments.

While capital appreciation offers long-term gains, rental income provides immediate cash flow. As property prices have climbed faster than rental rates, a phenomenon known as "yield compression" has occurred. The national average gross rental yield stood at 3.16% in early 2025.

However, this national average masks a wide range of opportunities depending on the location, property type, and target tenant. Specific segments offer significantly higher returns, especially those catering to specific, high-demand niches.

Here’s a breakdown of potential gross rental yields you can expect in 2026 across different market segments:

Note: The table provides estimated gross yields. Actual net yields will be lower after accounting for taxes, fees, and potential vacancies.

Seeing these numbers is one thing, but how do you apply them to your own investment decision? Savvy investors in Vietnam adopt a practical, conservative approach to calculating potential returns, moving from speculation to strategy.

Here’s a simple methodology recommended by market experts:

• Target a Conservative Yield: Instead of relying on optimistic brochure numbers, start your calculation with a conservative mid-single-digit gross yield (e.g., 3-5%) for a standard prime city condo.

• Stress-Test for Vacancy: A property is rarely rented out 365 days a year. A prudent strategy is to stress-test your numbers with 1 to 2 months of vacancy to ensure your investment remains profitable even in a slow month.

• Model Your Real Costs: Remember to subtract all expenses. This includes building management fees, service charges, maintenance costs, and the initial investment in furniture and fit-out if it’s a new unit.

• Use Live, Hyper-Local Data: The most accurate way to benchmark value is to analyze real-time data. Look at current rental listings and recent rental transactions in the same building or one right next door. Compare that income potential to the latest resale prices for similar units.

By following this disciplined approach, you can build a realistic financial model for your investment, grounded in data rather than hope.

• Ho Chi Minh City

As Vietnam's economic engine, it has the deepest rental demand. Experts recommend focusing on core districts and areas linked to new infrastructure, such as Thủ Thiêm in District 2 and the western region, where major new township projects are underway.

• Hanoi

The capital is a hotspot for capital appreciation. Look towards the suburbs where major developers like Vinhomes are launching large-scale projects at more accessible price points.

• Da Nang

This coastal city is a hybrid play on tech and tourism. Its clean environment, high quality of life, and growing tech parks make it ideal for both long-term residential and short-term vacation rentals.

• Industrial Hubs (Binh Duong, Long An, Hai Phong, Bac Ninh)

 These provinces are the engines of Vietnam's FDI boom. Investing in residential projects here caters to the massive, growing demand for housing among factory workers, engineers, and foreign experts, offering potentially higher, more stable rental yields.

There’s broad consensus that Vietnam is entering a new, more transparent cycle supported by regulatory reforms and improving investor sentiment.

From a macroeconomic perspective, Shan Saeed, Chief Economist of IQI, echoed this optimism while highlighting the importance of structural balance across Asia’s property markets:

This perspective reinforces the view that despite global volatility, Vietnam’s fundamentals, rising middle-class demand and supportive policy are setting the stage for sustained growth.

Nationally, the average price for a new residential property is around VND 74 million/sqm (US2,918). However, it varies significantly by city. In Hanoi, it’s about US$2,836/sqm, while in HCMC, it’s closer to US$3,000/sqm. In luxury city centers, prices can easily exceed US

8,000/sqm, with some prime HCMC apartments hitting US$4,925-6,820 per square meter.

It’s challenging but not impossible. Local banks are often hesitant to lend to foreigners without local income or residency. Most foreign buyers use cash or secure financing from a bank in their home country. Developers usually offer flexible payment plans over several years, which is a popular alternative to a traditional mortgage.

Da Nang is a strong contender due to its growth as a tech and tourism hub. For higher rental yields, industrial-focused cities like Binh Duong, Hai Phong, and Bac Ninh are excellent choices due to strong, consistent demand for housing from workers and expatriates.

New-build projects often come with attractive payment plans, modern amenities, and the potential for high appreciation once the area is fully developed. Resale properties, however, are located in established neighborhoods, and you can start earning rental income immediately. The choice depends on your strategy: new-builds for long-term growth, and resales for steady, immediate income.

The new law introduces an annual market-based land-pricing system, making valuations more transparent and reducing the risk of inflated prices based on outdated information. It also provides more straightforward guidelines for compensation and project approvals, helping reduce the risk of projects stalling due to legal issues.

Vietnam offers higher GDP growth potential and is at an earlier stage of its development cycle, suggesting greater room for capital appreciation. While Thailand and Malaysia have more mature legal frameworks for foreign ownership (like freehold options), Vietnam’s new laws are closing that gap, making it a compelling high-growth alternative.

Start by researching large, reputable international firms with a local presence, such as IQI, Savills, JLL, CBRE, or Knight Frank. Also, look for licensed local agencies with a strong track record and positive online reviews. Always verify that they have experience working with foreign clients and can provide support for all legal paperwork.