Written by Dustin Trung Nguyen, Head of IQI Vietnam

Vietnam Real Estate Market Overview

Ho Chi Minh City (HCMC) has announced a bold vision to create a US$7 billion international financial hub in District 1 and Thu Thiem Urban Area, with the initial nine-hectare phase centered in Thu Thiem. This strategic move includes regulatory infrastructure and talent development, signaling elevated residential interest in the Thu Duc area. However, it also adds speculation risk, as housing prices—already high—are rising fast. In Q1 2025, property prices in some regions soared 20-40% year-on-year, and Vietnam’s house price-to-income ratio now stands at 24.7–26, far exceeding the global affordability benchmark of 15.

On the commercial side, Hanoi’s mid-tier serviced apartment rents climbed 14% in Q1 to US$25/sqm/month. Meanwhile, Vietnam’s legal stance on short-term rentals is under scrutiny. Though current law restricts Airbnb-style leases, legal gaps remain—no precise definitions of “short-term” exist, and many argue such bans infringe on homeowners’ rights as outlined in the Civil Code. Regulatory revisions are likely, with implications for both local landlords and the broader property leasing market.