Vietnam Rental Yield: Ho Chi Minh City

What is the average rental yield in Ho Chi Minh City?

Rental yields in Ho Chi Minh City currently range from 3% to 7%, depending on property type and location. Studios and small condominiums deliver the highest returns, typically 5% to 7%. As of September 2025, rapid property price increases have caused yield compression, yet returns remain higher than in other major Southeast Asian cities such as Bangkok or Jakarta.

District 2 (Thu Duc City) and Binh Thanh District are considered the most attractive areas in terms of both yield and stability. Smaller units consistently outperform larger ones in rental return efficiency.

What is the current rental yield by property type in Ho Chi Minh City?

As of September 2025, rental yields in Ho Chi Minh City vary significantly depending on property type and location.

The average gross rental yield for condominiums ranges around 3%–6%, with large variations depending on unit size and prime location. Studios and 1-bedroom units consistently achieve 5%–7% due to high demand from young professionals and expatriate tenants.

Rental yields for villas and townhouses generally range from 3%–7%. In well-established residential areas such as District 2, District 7, and Binh Thanh District, existing houses typically provide a stable 3%–5% return. Meanwhile, some developing suburban areas offer high yields of 8%–20%, but these are often classified as speculative and should be approached with caution by general buyers due to higher risk.

Standalone houses in mature neighborhoods generate around 3%–5%, while townhouses in central areas achieve 4%–6% and can reach the upper end of this range in emerging districts.

How do rental yields differ by location?

“Location plays a major role in property pricing and rental yields across Ho Chi Minh City.”

District 2 (particularly Thao Dien and Thu Thiem) features sale prices of USD 3,200–6,500 per m² and rental yields of 4%–6%. The area is highly favored by expatriate families and international professionals, ensuring strong demand and liquidity.

Phu My Hung in District 7 offers sale prices of USD 2,800–4,500 per m² with yields of 3%–5%, supported by top-tier infrastructure and the presence of multiple international schools.

Thu Duc City (formerly District 9) maintains a lower entry price of USD 1,800–3,200 per m², with yields of 3%–6%, driven by strong rental demand from young professionals and students, although liquidity is lower than in inner-city districts.

Binh Thanh District — home to Landmark 81 — achieves USD 2,500–5,000 per m² and yields of 4%–7%, backed by excellent connectivity and a diverse tenant base including expatriates.

Relationship between unit size and rental yield

In Ho Chi Minh City, there is an inverse correlation between property size and rental yield:

Studios & 1-bedroom units:
Up to 7% gross yield in prime locations → highest profitability
Demand led by: single professionals, expatriate workers, students

2–3 bedroom apartments:
Yield 3%–5% → balanced performance
Stable long-term tenant profile (young families, professional couples)

Large apartments, townhouses & villas:
Yield generally 3%–4% → lower returns
High purchase cost + niche tenant demand reduce profitability

Nonetheless, 2–3 bedroom mid-sized units are considered the “sweet spot” for investors seeking balance between yield and tenant retention, although small units still lead in absolute yield performance.

How do purchase costs and taxes affect actual rental yields?

After reflecting all taxes, fees, and operating expenses, the net rental yield is generally 1–1.5 percentage points lower than the gross rental yield. This means most apartments in Ho Chi Minh City deliver a net yield of around 2–5%, depending on location and management efficiency.

Mortgage interest rates have a major impact on leveraged investment returns in Ho Chi Minh City.

State-owned banks commonly offer 5–7% fixed rates during promotional periods, which later shift to 9.5–11.5% variable rates. For foreign investors, private bank financing usually exceeds 10–12%, significantly increasing financial costs.

While short-term preferential rates (3–5 years) help ease the initial burden, the long-term effective rate can drastically reduce net return. Investors using high leverage often experience net yields below 3% after debt repayment, which can only improve if rental income or property values rise rapidly.

Cash buyers can enjoy more attractive absolute returns of 3–7% gross yield, while leveraged investors must carefully calculate debt servicing, expected rental return, and capital appreciation.

Under current financing conditions, a conservative leverage ratio and properties offering rental yields above 5% are recommended to maintain positive cash flow even after loan costs.

Short-term Rental vs. Long-term Rental Profitability

Short-term rentals (e.g., Airbnb) generate approximately 197 million VND/year (~USD 7,000) on average, with an ADR of USD 46 and ~51% occupancy. Well-operated units in prime CBD locations can achieve 8–12% gross yields, outperforming traditional long-term rentals.

However:

Higher volatility & seasonality (peak in December)

Operational workloads and management costs are high

Regulatory risks exist

Thus, net yields are often lower than gross yields.

Long-term rentals offer 3–6% gross yield with high occupancy rates.
For example, Grade-A serviced apartments maintain ~85% occupancy, providing predictable cash flow and simple tax handling.

➡️ Short-term rentals suit proactive, risk-tolerant investors
➡️ Long-term rentals suit stability-focused, passive-income investors

Rental Price Ranges (as of Sep 2025)

Studio / 1BR

D1–D2: USD 600–1,200/month

D7: USD 400–900/month

Binh Thanh: USD 300–600/month

2–3BR Condos

USD 700–1,700/month

Higher pricing in premium luxury developments

Stable long-term family tenant demand

Townhouses

USD 1,500–2,000/month

Popular among families and small businesses needing privacy & space

Detached Houses & Villas

USD 1,100–3,000/month

Top-tier villas in D1/2: USD 2,800–4,500/month

Targeting expat executives & high-income families

Tenant Profiles in Ho Chi Minh City

Expat professionals (Russian, Korean, Chinese, European)
→ Prefer serviced apartments & condos in D2, D7, Binh Thanh
→ Families often rent villas in Thao Dien

Students
→ Focus on affordability & proximity to schools
→ Prefer studios in Binh Thanh & Thu Duc City

Local professionals
→ Prefer 1–2BR condos in Binh Thanh, D1, D4 and transit-connected new districts

Expat & local families
→ Larger apartments / townhouses / villas near international schools
→ Top cluster: District 7 – Phu My Hung

Corporate tenants
→ Often lease multiple units or entire buildings for executives

➡️ Understanding tenant segments helps investors optimize location, product type, occupancy, and rental yield.

Recent Changes in Rental Yields and Rental Prices

Ho Chi Minh City’s rental market has experienced a clear rental yield compression over the past five years.

Rental yields declined steadily:

Q1 2023: 4.02%

Q1 2024: 3.83%

Q1 2025: around 3.16% or lower

This trend is mainly due to property prices rising faster than rental prices.

Since 2020, rental prices have shown strong growth, with newly built condos recording a 47% YoY increase in 2025. However, even this rental price surge has not kept pace with escalating home prices, leading to continuous yield pressure for new investors entering the market.

Meanwhile, short-term rental income increased 4% YoY as of July 2025, supported by tourism recovery and growing leisure demand.

Rental yield compression reflects:

A maturing market

Growing investor interest

Limited supply in prime locations

→ New investors are accepting lower yields to enter the market.

1-Year, 5-Year, and 10-Year Forecast for Rental Prices and Rental Yields

1-Year Outlook

Rental yields: slight decline or stabilization

Rental prices: projected to increase 5–7% citywide

Supported by strong demand and limited new supply

5-Year Outlook

Continued demand growth expected

However, yield compression likely to persist

Yield improvement limited unless rental growth outpaces price appreciation

Growth drivers: District 2, District 7, Thu Duc City → new development & investment corridors

10-Year Outlook

Metro lines, new CBD development, and increasing foreign capital

HCMC expected to maintain a yield advantage vs. regional peers:

Bangkok: 3–4.5%

Jakarta: 2.5–3.5%

Long-term rental growth will depend on:

Policy stability

Tax structure

Macroeconomic conditions

→ Early investors in areas with improved infrastructure, growing expat communities, and new development clusters will capture the highest gains.