Vietnam

Vietnam’s Residential Property Market Analysis 2026

L
Lalaine C. Delmendo Market Analyst - Asia & Latin America
Last update
Next update Sep 2026
Vietnam
House Prices · YoY
+24.33%
Q4 2025 · Jones Lang LaSalle
HP · YoY (Real)
+20.15%
Inflation-adjusted · Q4 2025
$/sq.m · Avg.
2,340
Condominiums (Secondary Market) - Hanoi

Vietnam’s housing market continues to show strength, reflected in surging prices and steady demand. However, with increased economic uncertainty, rising borrowing costs, and tighter lending rules, growth may gradually slow as buyers reassess affordability and leverage levels.

This extended overview from Global Property Guide covers key aspects of Vietnam’s housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

Property Prices and Price Index

In Ho Chi Minh City (HCMC), recognized as Vietnam’s largest city, economic hub, and busiest commercial center, the average price of apartments rose by a spectacular 24.3% to US$4,057 per square meter (sqm) in Q4 2025 as compared to a year earlier, based on figures released by JLL Vietnam. When adjusted for inflation, prices were up by a huge 20.2% over the same period.

Quarter-on-quarter, HCMC’s apartment prices increased strongly by 18.5% (17.4% inflation-adjusted) in Q4 2025.

Vietnam's house price annual change:

Residential property sales in Vietnam are increasing rapidly, buoyed by resilient domestic demand and strong foreign investments. In 2025, Vietnam registered over 580,400 successful real estate transactions nationwide, highlighting the market’s continued recovery. This follows a subdued period in 2020 and 2021, when annual transactions were just above 280,000. From 2022 to 2025, the market steadily improved, with yearly transactions ranging between 537,000 and 785,000.

Residential construction activity continues to rise. In Hanoi, the new supply of apartments reached its five-year high in 2025, based on figures from Savills. In HCMC, on the other hand, the market experienced a cautious recovery in 2025, with 8,600 units of new supply supported by improving developer sentiment.

Despite continued improvements, the Vietnamese property market continues to face significant supply shortages. According to Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, recent years, particularly 2025, have highlighted persistent structural challenges, including a clear imbalance between supply and demand, elevated property prices, and ongoing legal obstacles affecting project development.

While total housing supply has rebounded to near pre-2020 levels, its composition remains problematic. Land plots account for roughly 35% of supply, and apartment units about 65%, yet within the apartment segment, affordable housing has nearly disappeared. Instead, the market is increasingly dominated by mid-range, high-end, and luxury units, contributing to continued upward pressure on prices.

Vietnam opened up to foreigners a decade ago. Foreign residents in Vietnam are now permitted to purchase dwelling houses and can own the house, but not the land on which it is built. Despite this development, many potential foreign homebuyers are still discouraged from investing in Vietnam because of its inconsistent laws and complex regulatory framework, especially for foreigners looking to buy property in the country.

The country’s broader economy remains fundamentally strong. In the fourth quarter of 2025, Vietnam’s service-oriented economy grew robustly by 8.46% from a year earlier, up from year-on-year increases of 8.25% in Q3, 8.16% in Q2, and 7.05% in Q1, according to the country’s General Statistics Office. It marked the fastest pace of growth since Q4 2007. The growth was broad-based, with all sectors posting solid gains.

Overall, the country registered an economic growth rate of 8.02% during the full year of 2025. It followed real GDP growth rates of 7.09% in 2024, 5.05% in 2023, and 8.02% in 2022.

Recently, the government set an ambitious target of achieving an average GDP growth of 10% or higher annually during the 2026-2030 period. On the other hand, forecasts from international institutions remain more cautious. The International Monetary Fund (IMF) projects growth of 5.6% in 2026 and 5.8% in 2027, while the World Bank expects the economy to expand by 6.3% in 2026 and 6.7% in 2027.

Property Demand Trends

Demand remains robust

Residential property sales in Vietnam remains strong, amidst resilient domestic demand, strong foreign investments, and robust overall economic growth.

In 2025, Vietnam registered over 580,400 successful real estate transactions nationwide, highlighting the market’s continued recovery. This follows a subdued period in 2020 and 2021, when annual transactions were just above 280,000. From 2022 to 2025, the market steadily improved, with yearly transactions ranging between 537,000 and 785,000.

In Hanoi:

  • For apartments, demand remains robust with total sales reaching over 13,500 units in Q4 2025, according to CBRE. For the whole year of 2025, condo sales totaled 34,760 units, indicating stable absorption for the primary market. Vinhomes Ocean Park, Vinhomes Smart City, Global Gate, and Wonder City collectively accounted for over half of total sales last year, highlighting the strong market preference for large integrated mega projects, noted Savills
  • For villas and townhouses, sales transactions also rose to 820 units in Q4 2025. This brought the total transactions for the whole year of 2025 to 5,852 units, exceeding the total new supply for the year. According to CBRE, the entry of established foreign developers, such as CapitaLand, has attracted strong buyer interest and intensified competition across the sector.

Vietnam Apartment Sales graph

Likewise, property sales performance in Ho Chi Minh City remains strong, amidst resilient demand and the shrinking supply of affordable homes.

In HCMC:

  • Apartment sales increased to 11,500 units in 2025, with the absorption rate climbing to 82%, the highest level in five years, according to Savills. Market momentum strengthened in Q4 2025, when 5,000 units were sold, and 66% of available supply was absorbed, driven by both investment and owner-occupier demand.
  • For villas and townhouses, the market staged a notable rebound in 2025, with total sales climbing to 2,000 units and the absorption rate reaching 42%. This recovery was supported by large-scale, master-planned township developments from reputable developers, which alleviated the long-standing supply shortage and drew investor interest amid expectations of improved connectivity from upcoming infrastructure.

Vietnam Villa and Townhouse Sales graph

Property Supply Trends

Apartment pipeline signals steady growth

In Hanoi, the new supply of apartments totaled 6,530 units in Q4 2025, almost 50% decline from 12,972 units launched in the same period last year, based on figures from Savills. Despite this, the total new supply recorded in the whole year of 2025 remains the highest since 2021.

“In 2025, new supply was the highest in five years, dominated by Grade B developments,” said Savills. “In 2025, Vinhomes Ocean Park, Smart City, Global Gate, and Wonder City accounted for more than 50% of new supply and total sales, underscoring sustained demand for mega projects.”

This is in line with CBRE’s latest report. “2025 recorded a total of nearly 36,000 units, the second-highest annual launch ever recorded in the Hanoi condo market and trailing only the 2019 level,” said CBRE in its Q4 2025 Hanoi Real Estate Market report.

In 2026, new supply is expected to reach 18,454 units, dominated by Grade A and B developments. Hung Yen and Bac Ninh are poised to capture growing spillover demand from Hanoi, supported by enhanced transport connectivity and rising development activity.

From 2026 onwards, about 80,900 units from 99 projects will enter the market, with Grade B apartments contributing the largest share of 67% of future supply, according to Savills. Hoai Duc, Dong Anh, and Hoang Mai will account for 52% share of the total anticipated completions.

In HCMC, on the other hand, the market experienced a cautious recovery in 2025, with 8,600 units of new supply supported by improving developer sentiment. However, lengthy approval processes and limited land banks constrained new project launches, resulting in 94% of the supply coming from subsequent phases or the revival of previously stalled projects.

In Q4 2025, new supply in HCMC rebounded both quarter-on-quarter and year-on-year to 4,300 units, bringing primary stock to 7,600 units. Grade B products dominated the market, while the eastern area remained the key investment hotspot.

In the short term, new supply in HCMC is expected to remain constrained and increasingly costly. By 2028, the market is projected to deliver 58,000 units from 80 new projects and subsequent development phases, with the East accounting for 50% of the total pipeline and remaining the dominant growth area.

Revised laws, city planning updates, and key infrastructure completions will continue to buoy the market in the coming years.

“The Thu Duc City Plan was approved in January 2025, which is expected to improve apartment supply by 2040. New high-rise transit-oriented developments (TODs), with high floor area ratios, are encouraged. New projects are expected to be mainly located in Thu Thiem, Truong Tho, Long Binh, and Long Truong,” said Savills in an earlier report. “The authorities also resolved legal obstacles for residential projects, resulting in new progress in securing approvals, Sales and Purchase Agreements (SPA), construction permits, and pink book issue.”

Vietnam Residential Construction by Region graph

Supply of villas and townhouses growing but remains scarce

In Hanoi, new landed property supply reached 654 units in Q4 2025, with the majority originating from the mega township project in Van Giang (Hung Yen), according to CBRE. For the full year of 2025, total new supply reached over 3,800 units. Although this reflects a 40% decline compared with 2024, it still represents a relatively strong annual launch for the Hanoi market, indicating continued pipeline momentum.

“Looking ahead to 2026, the market is expected to see approximately 6,600 units to be launched. This upcoming pipeline is highly diversified, featuring projects in both core districts and suburban areas from a mix of local and reputable foreign developers,” said CBRE.

Savills projects that villas and townhouses will remain the primary component of the landed supply in Hanoi in the next three years. Momentum from mandatory relocation policies and significant capital injections is expected to reshape the market, accelerating growth in suburban districts, surrounding provinces, and infrastructure-linked locations.

In HCMC, the landed property market recorded a historic surge in supply, with approximately 4,500 units launched in Q4 2025, bringing total annual supply to nearly 5,000 units, according to CBRE. This represents a 20-fold increase compared with 2024, marking the strongest growth ever recorded in the area.

The primary driver of this expansion in HCMC was the mega-township project in Can Gio, spanning 2,870 hectares and expected to deliver around 64,000 residential units, including both condominiums and landed properties.

“Outlook for the coming years indicates that landed property supply in Ho Chi Minh City will improve, driven by new township projects in the eastern and southern areas,” said CBRE.

“In 2026, new supply is expected to reach around 5,500 units, and will gradually increase over the years to more than 15,000 units by 2028. Most of this supply will come from mega-township projects developed by major developers such as Vingroup, Masterise, and GS E&C,” added CBRE.

Vietnam Area of Housing Floors Constructed graph

Historic Perspective:

The memory of a housing bust (2009-2013)

Vietnam experienced a prolonged housing crisis in the aftermath of the 2008-9 global financial crisis. Property prices plunged by double-digit figures. The government was embarrassed, banks went bankrupt, and the economy slowed sharply.

The banking system was severely strained. At the height of the crisis, roughly one out of every ten loans in the banking system became non-performing, effectively crippling credit activity and undermining confidence in the financial sector.

To bolster demand, the government provided the real estate market with a US$1.4 billion stimulus package in 2013, subjected developers to stricter financial requirements, and bought US$8 billion of non-performing loans. The central bank slashed the refinance rate and discount rate several times and gave about US$197 million in credit to homebuyers through Vietinbank. These measures were, over time, successful.

Pre-pandemic real estate growth

After several years of housing market weakness, the Vietnamese government’s policy interventions gradually restored confidence in the sector. By the late 2010s, the real estate market had entered a strong recovery phase. Apartment prices in Ho Chi Minh City surged by about 75% between 2017 and 2019, equivalent to roughly 63% in inflation-adjusted terms, reflecting robust demand and renewed investor optimism.

Vietnam has begun to be seen as the next luxury property market hotspot, with a booming economy, coupled with laws that have recently made it easier for foreigners to buy. As a result, wealthy international investors have been drawn to the country.

Vietnam’s improving infrastructure is also a plus factor. “Vietnam focuses on investment in infrastructure, including 2,000 km of new highways, subway systems in Hanoi and Ho Chi Minh City, and many airport expansion and construction projects,” said JLL.

Beyond foreign capital inflows, domestic demand, particularly from wealthy locals, also played a crucial role. Vietnam’s homeownership rate exceeds 90%, one of the highest levels globally, underscoring the cultural and financial importance of property ownership among Vietnamese households.

“We have more and more very rich Vietnamese, particularly entrepreneurs looking for places to put their money,” said Niel MacGregor of Savills Vietnam.

Post-pandemic housing market recovery

After suffering a huge price decline of 14.3% (-14.5% inflation-adjusted) in 2020, the HCMC housing market bounced back quickly in the following year, as pandemic-related restrictions were gradually lifted. New apartment prices in HCMC were up strongly by 10.4% (8.4% inflation-adjusted) in 2021 and by another 15.1% (10.1% inflation-adjusted) in 2022.

However, HCMC’s housing market slowed dramatically in the succeeding two years, amidst declining demand. Apartment prices rose by 2.4% during 2023 but actually declined by 1.2% when adjusted for inflation.

Vietnam’s housing market rebounded strongly in 2024, signaling a sharp turnaround in the country’s property sector. In HCMC, apartment prices rose by 20.1% (16.7% inflation-adjusted), according to estimates from JLL. Data from Savills painted an even more bullish picture, suggesting that apartment prices in the city surged by as much as 33% over the same period, reflecting strong demand amid tight housing supply.

In 2025, apartment prices in HCMC averaged about VND111 million (US$4,222) per sqm, reflecting an annual increase of roughly 23%, according to data from Cushman & Wakefield. Meanwhile, in Hanoi, average apartment prices climbed to around VND100 million (US$3,804) per sqm, representing a much sharper year-on-year increase of about 40%, based on reports from Savills.

Rental Market: Rents and Rental Yields

Hanoi apartment rents varies across segments; vacancy rates improving

Rental performance of serviced apartments in Hanoi diverged across segments. While Grade A rents remained stable, Grade B rents declined, mainly due to competitive pricing strategies introduced by a new market entrant aiming to gain market share.

For Grade A apartments, the average asking rent was US$27.5 per sqm per month in Q4 2025, up by 0.5% from the previous quarter and by 2.6% from the same period last year, according to CBRE. On the other hand, the monthly rents for Grade B apartments averaged US$18.7 per sqm per month in Q4 2025, down by 2% q-o-q and by 0.2% y-o-y.

Overall, the market rent for serviced apartments in the capital city stood at an average of US$25.4 per sqm per month in Q4 2025.

The average vacancy rate for both grade projects combined was registered at 18.7% in Q4 2025, an improvement from the previous year’s 20.7%. Over the same period:

  • Grade A apartments: vacancy rate of 16.1%, down by 1.8 percentage points from the previous quarter and by 2.6 percentage points from a year earlier.
  • Grade B apartments: vacancy rate of 28.2%, up by 2.4 percentage points from the previous quarter but down slightly by 0.4 percentage points from the same period in the prior year.

Expats working in industrial parks are a major source of demand for serviced apartments in Hanoi.

The supply of serviced apartments in Hanoi increased to approximately 5,500 units by the end of 2025. Grade A serviced apartments dominated the market, representing about 80% of the total supply.

“Looking ahead, Hanoi’s serviced apartment market is positioned for a period of robust expansion. Over the next two years, the city is expected to welcome more than 1,100 new Grade A units, primarily concentrated in high-demand districts such as Cau Giay, Tay Ho, and Ba Dinh districts. This supply wave will feature an impressive lineup of international hospitality brands, including Hyatt, Ascott, and Park Royal, further elevating the city’s profile among expatriates and corporate tenants,” said CBRE. “With increasing international presence and improved product quality, the market outlook remains strongly positive.”

Gross rental yields remain relatively low

The average gross rental yields in Vietnam - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - stood at 3.85% in Q3 2025, from 3.16% in Q1 2025, 3.83% in Q1 2024, and 4.02% in Q3 2023, according to the Global Property Guide.

Gross rental yields in Hanoi and Ho Chi Minh City can be low to moderately good, depending on location.

In Hanoi, gross rental yields range from 3% to 4.39%, depending on the district, but still, the overall average for the city is 3.54%.

  • In Nam Từ Liêm, rental yields for apartments range from 2.67% to 3.58%.
  • In Cầu Giấy, rental yields range from 3% to 4.4%.
  • Hoàng Ma’s rental yields range from 2.58% to 3.1%.
  • Hà Đông’s apartments offer rental yields ranging from 2.77% to 3.75%.
  • In Thanh Xuân, rental yields range from 2.58% to 2.79%.
  • In Bắc Từ Liêm, apartments have low yields ranging from 2.49% to 2.64%.
  • In Hai Bà Trưng, rental yields range from 2.62% to 3.38%.
  • In Đống Đa, rental yields are relatively higher compared to other locations, ranging from 3% to 5.31%.
  • Tây Hồ apartments offer rental yields from 2.58% to 3.5%.
  • In Long Biên, rental yields range from 2.38% to 2.85%.
  • In Gia Lâm, apartments offer rental yields ranging from 2.83% to 4.21%.
  • In Ba Đình, rental yields range from 2.08% to 3.22%.

In Ho Chi Minh City, rental yields are slightly higher compared to the capital city, at between 3.3% and 4.72%, again depending on the district. The average for the city is 4.16%.

  • In District 2, apartment rental yields range from 3.16% to 3.53%.
  • In District 7, rental yields range from 3.57% to 4.21%.
  • Bình Thạnh apartments offer yields ranging from 2.99% to 4.82%.
  • District 9 apartments offer rental yields ranging between 2.22% to 2.82%.
  • In Thủ Đức, rental yields range from 3.42% to 5.83%.
  • In District 4, the rental yields for apartments are between 3.81% and 5.36%.
  • Tân Phú apartments offer yields ranging from 2.03% to 3.47%.
  • In District 8, rental yields range from 4.54% to 5.16%.
  • In Binh Chanh, apartment rental yields vary from 3.05% to 4.98%.
  • In District 12, yields vary from 2.79% to 3.8%.
  • Nhà Bè apartment rental yields range from 2.31% to 4.24%.
  • Tân Bình’s rental yields vary from 3.12% to 5.67%.
  • In District 6, rental yields range from 3.26% to 3.71%.
  • In Phú Nhuận, rental yields range from 3% to 4.01%.
  • In District 10, apartment rental yields vary from 3.22% to 5.9%.
  • In Gò Vấp, yields range from 3.29% to 3.67%.

Mortgage Market and Interest Rates

Policy rates steady, but home loan interest rates climb as liquidity tightens

As of February 2026, the State Bank of Vietnam (SBV), the country’s central bank, held its benchmark refinancing rate unchanged at 4.50%. The discount rate was also kept at 3.00%. This move aims to boost lending growth and buoy economic activity.

The central bank has kept its key policy interest rates unchanged since June 2023.

In early 2024, the central bank asked credit institutions to reduce loan interest rates and supply capital for prioritized sectors, including individual housing demand, social housing, houses for workers, and affordable commercial housing projects.

Then, on November 27, 2024, the SBV released Document No. 9774/NHNN-CSTT, instructing credit institutions and the central bank’s municipal and provincial branches to rigorously enforce measures to stabilize deposit interest rates and make greater efforts to lower lending interest rates.

On December 18, 2024, the SBV issued Decision No. 2690/QĐ-NHNN, setting the 2025 interest rate at 4.7% per year for outstanding balances of housing support loans issued under Circulars 11/2013, 32/2014, and 25/2016. These circulars govern Vietnam’s subsidized housing loan programs aimed at supporting low-income households, public sector workers, and other eligible groups in accessing affordable housing. The new rate represents a continued effort by the government to ease the financial burden on homebuyers and maintain stable, accessible credit in the housing sector.

These efforts continued into 2025. In February 2025, SBV reiterated its directive for credit institutions to maintain stable deposit interest rates and proactively lower lending rates, in line with the government’s target of achieving 8% GDP growth. Still in February, the SBV cut the interest rate on treasury bills by 0.1 percentage point-its first such move this year-signaling a shift toward further monetary easing. Interbank lending rates also declined significantly across various maturities.

By March 2025, the average short-term lending rate for priority sectors stood at about 3.9% per annum, below the central bank’s 4% cap, with more than 20 banks reducing deposit rates by 0.1 to 1.0 percentage points. Lending rates continued to decline steadily, falling by an additional 0.8 percentage point in the first half of the year alone, building on a cumulative drop of 1.4 percentage points in 2024.

In August 2025, the Prime Minister directed the SBV to remove the annual credit growth ceiling starting in 2026, replacing it with performance-based regulatory standards. This marks a structural reform in monetary management and is one of the most significant policy shifts in recent years.

Under the new framework, the SBV set a 15% credit growth target for 2026, allowing for adjustments in response to macroeconomic conditions and financial stability considerations.

Yet despite stable policy rates, mortgage lending rates have increased in recent months due to higher bank funding costs and tighter liquidity conditions. As competition for deposits intensified and banks adopted a more cautious approach to real estate lending, borrowing costs for homebuyers have also risen sharply.

Reports indicate that home loan interest rates have risen sharply once preferential periods expire, with floating rates reaching around 12% to 14% per year, depending on the bank and loan structure. Since late February 2026, several banks have raised housing loan rates by about 1 to 2 percentage points compared with late 2025. Fixed promotional rates typically range from 8% to 10% during introductory periods before shifting to higher floating rates.

For selected banks, by end-February 2026:

  • Vietcombank - Average lending rate of 6.1% per year; post-preferential mortgage rates can reach up to 13.9% with a fixed term for the first 24 months.
  • BIDV - Average lending rate of 5.75% per year; real estate lending rates adjusted to around 13.5% after promotional periods.
  • Agribank - Average lending rate of 7.34% per year, the highest among state-owned banks, up 1.18 percentage points from the previous month.
  • BVBank - Average lending rate of 9.61% per year.
  • Bac A Bank, OCB, Sacombank, and TPBank - Average lending rates above 9% per year.

The increase in borrowing costs has prompted many investors and households to reassess borrowing plans. Although credit growth remains positive with total outstanding credit reaching about US$754.4 billion as of late February 2026, higher mortgage rates and tighter liquidity have begun to moderate real estate transactions in some market segments. The central bank said it will continue to manage interest rates flexibly while prioritizing inflation control and macroeconomic stability.

Lower interest rates for young homebuyers and social housing developers

Young homebuyers aged 35 and below benefited from a subsidized housing loan program that offered a 5.9% annual interest rate from July to December 2025, according to the SBV. This was 2% lower than the average rates of major state-owned banks - Agribank, BIDV, Vietcombank, and VietinBank - and applied for the first five years of the loan. Starting in 2026, the program continues to provide a rate that is 1 percentage point below the market average.

“To buy an average 70-square-meter apartment priced between VND3 billion-VND4 billion (US$114,500–US$152,600) in big cities, a young person would need 20–25 years of income,” said Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management at the Ministry of Construction.

Developers of social and workers’ housing and old apartment renovations can also borrow at a reduced rate of 6.4%.

These loans are part of a VND120 trillion (US$4.56 billion) package launched in April 2023 to boost social housing. Since then, interest rates have been cut four times, down from the original 8.2% for buyers and 8.7% for developers, reflecting continued government efforts to improve housing affordability.

By April 2025, participating banks had committed about VND7.8 trillion (US$298 million) to 38 social housing projects, with roughly half already disbursed, including VND3.3 trillion (US$125.5 million) for project developers and VND585 billion (US$22.3 million) for individual homebuyers.

Mortgage market shows strong growth, but still underdeveloped

As of December 31, 2025, Vietnam’s outstanding credit to the real estate sector by credit institutions reached about VND 4,740 trillion (US$180.3 billion), up by a huge 36.2% from a year earlier. This continued growth highlights the steady recovery and sustained demand in both the housing and property development sectors, despite ongoing challenges in the broader economy.

Real estate loans now account for approximately 25.5% of the country’s total outstanding credit, up from the 21.3% share recorded in Q1 2025.

Despite this growth in credit, Vietnam’s mortgage market remains relatively underdeveloped. Most homebuyers continue to pay in cash, and although developers are increasingly cooperating with banks to offer financing options, strict lending procedures still limit expansion. Loan-to-value ratios rarely exceed 50% of property value, and typical loan terms are around 15 years, reflecting a cautious lending environment.

And with the recent directive from the SBV to strictly control credit growth and limit real estate lending to align with overall system-wide expansion, real estate credit is expected to slow in the coming months. Accordingly, in the first quarter of 2026, total credit growth must not exceed 25% of the annual target, and lending to real estate at each bank must not grow faster than overall credit. According to the central bank, the policy is intended to contain risks in the property sector while directing resources toward productive activities and sustainable growth drivers.

Economic and Social Factors

Amendments to housing, land, and real estate laws

Vietnam opened up to foreigners a decade ago. Through the Housing Law (Law on Housing No. 65/2014/QH13), which became effective on July 1, 2015, foreigners who have been granted a Vietnamese visa, plus foreign investment funds, banks, Vietnamese branches, and representative offices of overseas companies, could now purchase residential property. Foreigners can now own all types of properties, including condominiums and landed property such as villas and townhouses. Properties owned by foreigners can be sub-leased, inherited, and collateralized.

Moreover, overseas Vietnamese who have maintained their Vietnamese citizenship are treated like locals and are permitted to own unlimited property in their own names. It is estimated that about 70% of the 4 million overseas Vietnamese around the world still maintain their original citizenship.

For foreign individuals, the house ownership period is 30 years, but it can be extended. The new law also limits foreigners from owning more than 30% of a single apartment building, or more than 350 houses and apartments in a ward, a subdistrict-level administrative area.

Detailed guidelines on implementing the Housing Law (Decree 99) became effective on December 10, 2015. According to Decree 99, foreigners are allowed to own houses in Vietnam as long as they are able to meet these conditions:

  • The foreigner’s valid passport should have an entry stamp affixed to it from Vietnam’s immigration authority.
  • They should not be in the category of people entitled to preferential treatment or diplomatic immunity in accordance with the Ordinance on Preferential Treatment Rights and Immunities Applicable to Representative Diplomatic Offices, Foreign Consulates, and Representative Offices of International Organisations in Vietnam.

On August 15, 2016, the Ministry of Construction Circular 19/2016/TT-BXD (Circular 19), which contains guidelines on the Law on Housing and on Decree No. 99/2015/ND-CP, became effective. As for individual houses under commercial housing projects (including villas and semi-detached houses), foreigners are allowed to own 10% of the total individual houses of a particular project.

Despite these developments, Vietnam’s land, housing, and real estate laws are still publicly perceived as rather complex and confusing because of inconsistencies in some provisions. To address this issue and to encourage foreign investment, the government recently amended its Land Law and the related Housing Law. The amended laws were approved in November 2023 and officially took effect on January 1, 2025.

“According to the Law on Housing 2014 and the Law on Real Estate Business 2014, foreigners are entitled to buy and own houses in Vietnam, including apartments and separate houses associated with land use rights. Meanwhile, according to the Land Law 2013, foreigners are not eligible to own land use rights in Vietnam. Therefore, the proposed amendments in the Revised Law on Housing are considered essential to ensure a consistent and rigid regulatory framework for foreigners looking to buy property in Vietnam,” said Dang Phuong Hang of CBRE Vietnam.

There are more than 100,000 foreigners currently living in Vietnam, up from about 83,500 four years ago. Most of the migrants come from China, Korea, Japan, Taiwan, and the United States. They are concentrated in big cities such as Hanoi, HCMC, Da Nang, and Nha Trang.

From 2014, when the housing law came into effect, to 2023, a total of 3,035 foreign individuals have purchased homes in Vietnam, according to figures from the Ministry of Construction. Most of these purchases involve apartments in commercial residential projects. Foreign organizations and individuals have primarily acquired properties in Hanoi (1,765), Ho Chi Minh City (850), Bac Ninh Province in the north (110), Binh Duong Province in the south (210), and Ba Ria-Vung Tau Province (50).

While nationwide figures for the past two years have yet to be released, available data points to a sharp increase in foreign demand. In 2024, foreigners purchased more than 2,800 apartments in Hanoi alone, more than double the total number of foreign purchases recorded during the five-year period from 2018 to 2022, according to the Vietnam Association of Realtors. The strong momentum was reported to have continued in 2025, supported by rising numbers of foreign professionals in Vietnam and clearer property ownership rules for overseas buyers.

“This is a positive sign for the real estate market as it helps sell a large number of unsold high-end and luxury properties,” the association said.

New free trade agreements support rising foreign investment and real estate demand

In recent years, Vietnam has signed several landmark free trade agreements that are expected to boost foreign investment, expand trade, and accelerate institutional reforms. These agreements also enhance Vietnam’s attractiveness as a destination for multinational companies, professionals, and expatriates - factors that indirectly support demand for housing and commercial real estate.

The EU-Vietnam Free Trade Agreement (EVFTA), which came into force in August 2020, provides significant opportunities to increase trade and support job creation through the following measures:

  • Eliminating 99% of tariffs between Vietnam and the European Union;
  • Reducing regulatory barriers and overlapping administrative procedures;
  • Ensuring the protection of geographical indications for more than 200 products;
  • Liberalizing government procurement markets;
  • Establishing obligations related to competition policy and mergers; and
  • Introducing provisions on sustainable development, including commitments on climate, labor standards, and human rights.

The EVFTA is considered one of the most comprehensive agreements between the EU and an ASEAN member state, significantly strengthening Vietnam’s integration into global value chains.

Another major agreement is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which entered into force for Vietnam in January 2019. The pact includes 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, and Vietnam. The agreement is expected to benefit Vietnam’s real estate market by encouraging foreign direct investment and increasing the presence of multinational companies.

Key provisions relevant to real estate and investment include:

  • Protection for foreign investors through the Investor-State Dispute Settlement (ISDS) mechanism, which applies to cross-border investments, including property development projects;
  • Expanded participation of foreign investors in real estate services, including brokerage, property exchanges, consulting, and management services for both residential and commercial properties.

Vietnam has also strengthened its trade integration through the Regional Comprehensive Economic Partnership (RCEP), which entered into force in 2022. The agreement links Vietnam with 15 Asia-Pacific economies, including China, Japan, South Korea, Australia, and the 10 ASEAN member states, creating the largest free trade area in the world. RCEP is expected to deepen regional supply chains and attract additional manufacturing investment into Vietnam, further increasing demand for industrial property, logistics facilities, and housing for foreign professionals.

Another important agreement is the UK-Vietnam Free Trade Agreement (UKVFTA), which took effect in 2021 after the United Kingdom left the EU. The deal largely replicates the EVFTA’s tariff reductions and investment protections, ensuring continued trade and investment flows between Vietnam and the United Kingdom.

The positive effects of these trade agreements have become more evident in the post-pandemic period, as foreign direct investment flows into Vietnam have remained strong and multinational firms continue to expand operations in the country. As economic activity recovered after the lifting of COVID-19 restrictions, increased foreign business presence has supported demand for office space, industrial parks, and housing in major cities such as Ho Chi Minh City and Hanoi.

Foreign investments continue to increase

During 2025, Vietnam attracted a total of US$38.42 billion foreign direct investment (FDI) capital, up by 0.5% from the preceding year and one of the highest FDI inflows recorded in the country in recent years, based on figures released by the Foreign Investment Agency under the Ministry of Finance.

Of the total registered foreign investment last year, newly registered capital reached US$17.32 billion from 4,054 projects, down 12.2% in value but up 20.1% in the number of projects compared with the previous year. Of this amount, real estate activities attracted US$3.67 billion, accounting for about 21.2% of newly registered FDI.

Along with high registered FDI inflows in 2025, the value of disbursed FDI capital in the country also reached US$27.62 billion, up by 9% from a year earlier. It marked the highest level of realized FDI in the past five years. Disbursed FDI stood at US$25.35 billion in 2024, US$23.18 billion in 2023, US$22.4 billion in 2022, and US$19.74 billion in 2021.

Of the US$27.62 billion disbursed FDI capital, real estate activities accounted for US$1.93 billion, equivalent to 7% share of the total.

Among the 90 countries and territories with newly licensed investment projects in Vietnam in 2025, Singapore emerged as the largest investor, with US$4.84 billion, accounting for 27.9% share of newly registered capital. China ranked second with US$3.64 billion (21% share), followed by Hong Kong with US$1.73 billion (10% share). Other major investors included Japan with US$1.62 billion (9.4% share), Sweden with US$1 billion (5.8% share), Taiwan with US$965.8 million (5.6% share), and South Korea with US$895.9 million (5.2% share).

In 2025, Ho Chi Minh City emerged as the largest FDI destination in Vietnam, attracting about US$7.09 billion in registered FDI. It was followed by Bac Ninh Province with around US$5.73 billion, and Hanoi with roughly US$4.3 billion.

Other major investment destinations included Hai Phong, Dong Nai Province, Binh Duong Province, Quang Ninh Province, Long An Province, Ba Ria-Vung Tau Province, and Thai Nguyen Province, reflecting the continued concentration of foreign investment in Vietnam’s major industrial and urban centers.

Vietnam Foreign Direct Investment graph

Spectacular economic growth, manageable inflation

In the fourth quarter of 2025, Vietnam’s economy grew robustly by 8.46% from a year earlier, up from year-on-year increases of 8.25% in Q3, 8.16% in Q2, and 7.05% in Q1, according to the country’s National Statistics Office. It marked the fastest pace of growth since Q4 2007.

“Gross Domestic Product (GDP) in the fourth quarter of 2025 was estimated to increase by 8.46% year-on-year, reaching the highest growth rate for the fourth quarter in the period 2011-2025, maintaining the trend of each subsequent quarter growing faster than the previous one,” said the NSO.

The growth was broad-based, with all sectors posting solid gains. Industry and construction expanded strongly by 9.73% year-on-year in Q4 2025, services rose by 8.82%, and agriculture recorded a moderate growth of 3.70%.

Overall, the country registered an economic growth rate of 8.02% during the full year of 2025. It followed real GDP growth rates of 7.09% in 2024, 5.05% in 2023, and 8.02% in 2022.

Vietnam is a service-oriented economy, with the services sector accounting for almost half of the country’s total GDP.

  • The services sector emerged as the primary growth driver during 2025, contributing about 51.08% share, sharply up from contributions of 42.36% in the previous year and 42.3% two years ago.
  • The industrial and construction sector accounted for a 43.62% share of the country’s GDP last year, up from 37.64% in 2024 and 37.58% in 2023.
  • The agroforestry-fishery sector had a share of just 5.3% in 2025, sharply down from nearly 12% share in both 2023 and 2024.

Vietnam’s strong growth continues to be supported by its extensive trade ties, with the United States as its largest export market and China its main source of imports. Under a 2025 trade framework, many Vietnamese exports to the U.S. were subject to tariffs of around 20%, while goods identified as transshipped through Vietnam from third countries could face duties of up to 40%. In early 2026, however, the United States temporarily shifted to a 10% global tariff regime while reviewing its broader tariff policy.

Recently, the government set an ambitious target of achieving average GDP growth of 10% or higher annually during the 2026-2030 period. In contrast, forecasts from international institutions remain more cautious. The International Monetary Fund (IMF) projects growth of 5.6% in 2026 and 5.8% in 2027, while the World Bank expects the economy to expand by 6.3% in 2026 and 6.7% in 2027.

Despite the adverse impact of the Covid-19 pandemic, the Vietnamese economy managed to post decent growth of 2.87% in 2020 and another 2.56% in 2021, coming after almost four decades of uninterrupted growth:

  • 1981-1990 - average real GDP growth of 5.9% per year
  • 1991-2000 - average real GDP growth rate of 7.6% annually
  • 2001-2010 - average real GDP growth rate of 6.8% annually
  • 2011-2020 - average real GDP growth rate of 6.2% annually

“Viet Nam’s growth acceleration, one of the longest on record, started in 1991 and was upended only by the COVID-19 recession of 2020. Between 1991 and 2019, Vietnam’s real annual GDP growth per capita averaged 5.6 percent, almost twice the rate in non-acceleration years. This sustained period of growth was accompanied by a substantial decline in inflation, low unemployment rates, modest fiscal and current account deficits, and relatively low debt levels,” said the World Bank in its Global Economic Prospects published in January 2025.

“Even during the global recession of 2009, the country maintained positive growth, reflecting the strength of its domestic market and the effectiveness of government policies,” added the World Bank.

Vietnam Real GDP Growth and Inflation graph

Consumer prices remain manageable. In February 2026, the country’s annual inflation rate stood at 3.35%, up from 2.53% in the previous month and from 2.91% in the same month last year, according to figures from GSO. Despite this, it remains within the central bank’s inflation target of under 4.5%.

Inflation slowed to an annual average of just 2.9% from 2014 to 2024, from an average of 10.6% from 2004 to 2013. Then, during 2025, nationwide inflation averaged 3.31%.

The labor market remains tight. The country’s unemployment rate was 2.22% in Q4 2025, hardly changed from the preceding quarters, according to GSO.

From 6.42% in 2000, Vietnam’s unemployment rate has continuously declined to reach 2.17% in 2019, according to the IMF, but increased to 2.48% in 2020 and further to 3.2% in 2021 due to the pandemic. The labor market started to improve again in recent years, with the jobless rate falling to 2.32% in 2022, 2.3% in 2023, and 2.2% in both 2024 and 2025.

Vietnam Unemployment Percentage graph

Strong tourism sector

Tourism is steadily growing and has now exceeded the pre-pandemic levels. During 2025, there were nearly 21.2 million foreign visitors in Vietnam, up strongly by 20.4% from a year earlier, based on figures released by Viet Nam National Authority of Tourism. Having outstripped the 2019 pre‑pandemic peak of 18 million arrivals, it is now the most arrivals Vietnam has ever seen.

“Vietnam’s tourism sector has fully recovered to pre-pandemic levels, with 2025 arrivals surpassing 2019 figures,” said Nguyen Quy Phuong, Director for Tourism Marketing Division of Viet Nam National Authority of Tourism, noting that domestic tourism receipts reached nearly US$39 billion, underscoring the sector’s growing contribution to the economy.

Tourist arrivals grew by an annual average of 23% during 2016-19 before plunging by nearly 90% annually in 2020 and 2021. The sector has started to recover in 2023 and has been continuously growing since.

By means of transport:

  • By airways: 17.84 million foreign visitors, up by a huge 20.2% compared to a year ago, and the highest level ever recorded
  • By sea: 274,000 million foreign visitors, up by 10.4% from a year earlier
  • By land: 3.05 million foreign visitors, an increase of 22.6% from the previous year, and also its best showing in recent history

Vietnam Foreign Arrivals graph

China accounted for the biggest share of approximately 25% of total international visitors in Vietnam during 2025, followed by South Korea (20.5%), Taiwan (5.8%), the United States (4%), Japan (4%), India (3.5%), Russia (3.3%), Cambodia (3.2%), Malaysia (2.7%), Australia (2.6%), and Thailand (2.2%).

Then in the first two months of 2026, total international arrivals soared by 18.1% y-o-y to 4.68 million. Air travel continued to dominate, with over 3.83 million arrivals by air, accounting for nearly 82% of the total and marking a 12.8% y-o-y increase. This was followed by about 741,000 arrivals by land, while the remainder arrived by sea.

Vietnam aims to welcome a record high of 25 million international tourists in 2026, about 18% increase from last year’s arrivals, according to the Vietnam National Authority of Tourism.

Exchange rate movements have also supported the recovery of Vietnam’s tourism sector. A relatively stable and competitive Vietnamese đồng has helped keep the country an attractive destination for international travelers by making accommodation, food, and other tourism services more affordable compared with regional peers. In February 2026, the average monthly exchange rate stood at VND 25,993 per USD 1.

Vietnam Monthly Average Exchange Rate graph

Sources:

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