Vietnam Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

23.7x

Ratio of property prices to annual income

Rental Yield

3.1%

Average annual rental return

Price to Rent

32.2

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Vietnam Real Estate trends and investment implications

Market Overview

Vietnam's property market shows signs of being overheated with a high price-to-income ratio, posing affordability challenges. While rental yields remain low compared to other international markets, they are moderately attractive against local interest rates. Investors should be cautious of potential market corrections given the high price-to-rent ratio and current market cycle indicators.

Key Findings

Data-driven insights

•The price-to-income ratio is 23.7, indicating that property prices are significantly higher than average incomes, which suggests an overheated market.
•Rental yield stands at 3.1%, which is relatively low and may not compensate adequately for investment risks compared to local savings interest rates.
•Price-to-rent ratio is 32.2, suggesting that buying is less economically rational than renting under current conditions.
•Historical data shows periodic corrections indicating that the market may be nearing a peak phase in the current cycle.

Market Trends

Historical patterns

•The price-to-income ratio has steadily increased over the past two decades, pointing towards increasing unaffordability.
•Rental yields have remained relatively stable but low, with minimal fluctuation over the last five years.
•There have been multiple market corrections in the past, typically following rapid price increases, suggesting a cyclical pattern.

For Investors

Actionable takeaways

•Investors should consider waiting for potential market corrections before making significant purchases.
•Target rental yields above 4% to ensure investments are competitive against local savings rates.
•Focus on properties with solid rental demand to mitigate risks associated with low yields.
•Monitor macroeconomic indicators closely for signs of a market peak to time exits effectively.

Market Context

Vietnam's property market is in a transitional phase, moving towards maturity but still subject to volatility and speculative pressures. Investors need to navigate carefully, balancing growth potential with inherent risks.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.