Published on and written by Cyril Jarnias
Real Estate Investment in Vietnam: New vs. Old
In an ever-evolving real estate market, Vietnam proves to be fertile ground for investors seeking to diversify their portfolios. The choice between new and old properties thus becomes crucial, influenced by factors such as price per square meter, construction quality, and profitability opportunities.
While new developments attract with modern amenities and improved infrastructure, the charm of older properties often offers strategic locations and unparalleled historical character. Through a data-driven comparison, this article examines current trends in the Vietnamese market to guide potential buyers in their decision-making.
Good to Know:
The Vietnamese real estate market is experiencing sustained growth, with significant variations across regions. Major cities like Ho Chi Minh City and Hanoi offer distinct opportunities between new and old properties.
Advantages of New Real Estate in Vietnam
New real estate in Vietnam offers numerous advantages for investors and residents. Here are the main benefits:
Modern Technologies and Innovative Materials
New real estate projects in Vietnam incorporate cutting-edge technologies (home automation, smart security systems) and innovative building materials, promoting superior energy efficiency and increased building longevity.
- High-performance thermal insulation reducing energy costs
- High-efficiency glazing
- Increased use of sustainable and recyclable materials
Enhanced Quality and Safety Standards
New buildings are subject to stricter quality and safety standards:
- Compliance with latest fire safety regulations
- Regular quality controls during construction phase
- Consideration of environmental standards (“green” buildings)
Modern Amenities and Infrastructure
New residential complexes offer infrastructure adapted to contemporary needs:
- Landscaped green spaces
- Integrated swimming pools and gyms
- Playgrounds and recreational areas for children
- Secure parking
- Easy access to modern transportation networks (e.g., proximity to metro lines)
| Amenity | Typical Presence in New Real Estate |
| Green spaces | Yes |
| Swimming pools | Yes |
| Gyms | Yes |
| Playgrounds | Yes |
| Secure parking | Yes |
| Metro access | Often |
Tax Incentives and Financial Benefits
The Vietnamese government encourages the purchase of new real estate properties through various measures:
- Temporary tax reductions or exemptions for first-time buyers
- Purchase subsidies for “green” housing (high energy efficiency buildings)
- Flexible payment methods offered by developers
- Ongoing tax reforms to limit speculation and promote home ownership
Resale Potential and Increased Value
The new real estate market benefits from growing demand, particularly in major cities and developing areas, resulting in:
- Annual price growth of 5-7% in 2024-2025
- Higher potential capital gains upon resale, especially for properties located near new infrastructure (metro lines, major roads)
- Attractiveness to expatriates and young professionals
Layout Flexibility
New developments offer great layout flexibility, adapted to contemporary lifestyles:
- Modular spaces for remote work or leisure
- Family apartments with multiple bathrooms
- Optimized studios and two-bedroom units for young professionals
- Customization options for finishes and equipment
Good to Know:
New real estate in Vietnam benefits from modern technologies and innovative materials that offer increased energy efficiency and longevity, ensuring lasting comfort for residents. New constructions adhere to stricter quality and safety standards and often incorporate modern amenities such as swimming pools, gyms, and green spaces. The Vietnamese government also offers attractive tax incentives and financial benefits for purchasing new properties. Due to growing demand, these properties often show potentially higher resale value. Moreover, modern layouts of new apartments are flexible, particularly attracting contemporary families and young professionals seeking living spaces adapted to their needs.
Key Takeaway:
New real estate in Vietnam stands out for its technical innovations, compliance with modern standards, comprehensive infrastructure, and tax incentives, while offering strong appreciation and layouts suited to contemporary living.
Cost and Benefit Analysis of Old Real Estate
| Average Cost Comparison (Late 2024) | Old Real Estate | New Real Estate |
|---|---|---|
| Hanoi | 60 to 70 million VND/m² | 65 to 72 million VND/m² |
| Ho Chi Minh City | >70 million VND/m² | 76 million VND/m² (average) |
– In Hanoi, the gap between old and new tends to narrow, with new properties remaining slightly more expensive, especially in high-end new projects.
– In Ho Chi Minh City, the new market shows a price premium, particularly due to the upscaling of supply.
Costs Associated with Acquiring Old Properties
Financial Benefits of Old Properties
Mortgage Repayment Rates
– Interest rates for old properties are similar to new ones, sometimes with higher down payment requirements for old properties needing significant renovations.
– Banks prefer old properties in good condition and well-located, but often offer more attractive terms for new properties (promotional rates, deferred repayment).
Valuable Cultural and Historical Aspects
– Old properties in central Hanoi or Ho Chi Minh City are sought after for their architectural charm (colonial, art deco, traditional tube houses).
– Some neighborhoods benefit from heritage protection, enhancing appeal for investors sensitive to historical prestige and land scarcity.
Geographic Accessibility and Infrastructure Proximity
– Old properties are generally located in historic centers of major cities, offering immediate proximity to:
Market Trends and Availability
– Sustained demand for old properties in central and historic neighborhoods, but limited supply, driving prices up in certain segments.
– New developments mainly occur in peripheral areas, with abundant supply but rapidly rising prices, especially in high-end segments.
– Price volatility, marked in recent years (+26% for old and +36% for new in Hanoi during 2023-2025), encourages careful analysis before any investment.
Examples and Investor Testimonials
– An investor in Hanoi who purchased an old apartment in 2022 reported nearly 30% capital gains by late 2024, after renovation and rental to expatriates.
– Several buyers mention the ease of renting renovated old properties in historic neighborhoods, with high occupancy rates, despite higher maintenance costs.
– Some testimonials highlight that the charm and location of old properties largely offset renovation costs, particularly for foreign or affluent clientele.
Key Takeaways
– Old real estate remains competitive in Vietnam, offering opportunities for heritage appreciation and rental income, provided renovation and maintenance costs are factored into profitability analysis.
– The choice between new and old will depend on investment strategy, ability to manage renovation work, and preference for location versus modern infrastructure.
Good to Know:
In Vietnam, the average price per square meter for old properties is often lower than for new constructions, but this comes with additional costs related to renovations and maintenance that can quickly add up. However, old properties offer the financial advantage of value stability, with attractive rental opportunities and sometimes interesting tax incentives. Mortgage repayment rates for old properties are generally competitive compared to new ones, and many are drawn to the cultural and historical charm of old houses, which benefit from proximity to essential infrastructure like public transportation or schools. In terms of accessibility, old properties are often located in well-established, better-served neighborhoods. The Vietnamese real estate market is currently experiencing growing demand for old properties, leading to gradual price increases and affecting the availability of these properties. Investor testimonials highlight the benefits of these choices, emphasizing positive experiences in terms of cost and long-term returns.
Builder Warranties: An Advantage for New Real Estate in Vietnam
Builder warranties in new real estate in Vietnam represent a set of contractual and legal protections offered to buyers upon delivery of a newly constructed property. They aim to secure the investment by covering construction defects and ensuring the delivered property’s compliance.
Main Types of Warranties Offered and Their Duration:
| Warranty | Description | Duration |
|---|---|---|
| Perfect Completion Guarantee | Covers all defects reported at reception or within the following year | 1 year |
| Two-Year Guarantee | Covers separable equipment (doors, windows, etc.) | 2 years |
| Ten-Year Guarantee | Covers damages compromising the building’s structural integrity or habitability | 10 years |
| Delivery Guarantee | Ensures project completion in case of developer failure | Until delivery |
| Refund Guarantee | Refunds the deposit in case of non-completion of work | Before delivery |
Developers in Vietnam typically offer the ten-year guarantee, which is the most important for protecting the buyer against serious defects that could affect the building’s structural integrity or render it unfit for its purpose. Additional guarantees for proper functioning and perfect completion cover necessary repairs over shorter periods.
Advantages Compared to Old Real Estate:
- Old properties generally do not benefit from any builder warranty. The buyer therefore bears all risks related to hidden defects or equipment wear and tear.
- In new properties, repairs for covered issues are the responsibility of the builder or their insurer, significantly reducing unexpected costs for the buyer.
- The presence of warranties reassures about construction quality and compliance with current standards.
Impact on Buyer and Investor Confidence:
Studies of the Vietnamese real estate market show that the presence of builder warranties significantly increases buyer confidence in new projects, particularly for foreign investors or first-time buyers.
According to sector analyses, over 70% of buyers consider the ten-year guarantee a determining factor in their purchase decision.
“The ten-year guarantee allows our clients to invest with peace of mind, knowing their capital is protected against major defects for a long duration.”
A Vietnamese Developer
“I chose a new apartment because I wanted to avoid unpleasant surprises. Thanks to the warranties, I could move in with peace of mind, knowing any defect would be taken care of.”
A Buyer
Investment Security Comparison:
| Criterion | New Real Estate (with warranties) | Old Real Estate |
|---|---|---|
| Protection against defects | Yes, for 1 to 10 years depending on defect nature | Rarely, except for hidden defects |
| Repair costs | Covered by builder/insurer | Sole responsibility of buyer |
| Resale value | Higher, property under warranty | Often lower, risks of wear and tear |
| Peace of mind | Maximum, legal security | Risk of unexpected repairs |
Risks Associated with Buying Old Properties:
- Absence of ten-year guarantee, thus risk of having to assume heavy repairs (roofing, structure, etc.).
- Possibility of needing compliance upgrades or renovations, sometimes costly and unexpected.
- Lower attractiveness upon resale, as new buyers often prefer properties still covered by warranties.
Expert Perspectives and Testimonials:
“The generalization of builder warranties in new properties has profoundly changed risk perception for investors. This allows attracting a broader audience and promotes the residential market’s dynamism.”
A Real Estate Expert Based in Ho Chi Minh City
“Buying an old property is often like playing the lottery. In new properties, warranties are a safety net that makes all the difference, especially for those buying remotely or without local market experience.”
A Local Investor
Builder warranties thus constitute a major advantage for new real estate in Vietnam, securing the investment, reassuring buyers, and reducing financial risks associated with property ownership.
Good to Know:
In Vietnam, builder warranties for new real estate, such as the ten-year guarantee, typically cover potential structural defects for ten years, a significant advantage compared to old properties often lacking such protections. The assurance these warranties provide strengthens buyer confidence, boosting sales of new projects; a CBRE Vietnam study revealed that 70% of buyers prefer new constructions for this reason. Investing in new properties eliminates the risk of unexpected repairs, often costly in old properties. Nguyen Van Quang, a real estate expert, emphasizes that “builder warranties eliminate a large part of uncertainty for buyers.” A testimonial from Ms. Le, an owner in a recently completed building in Ho Chi Minh City, illustrates the peace of mind offered by these warranties: “Knowing my home is protected frees me from financial worries related to unexpected issues.” These elements solidify the position of new real estate, offering peace of mind often absent in old properties.
Comparing Resale Values in the Vietnamese Market
Resale Value Comparison Between New and Old Real Estate in Vietnam
| Criterion | New Real Estate | Old Real Estate |
| Average Resale Price | Approximately 20% higher for equal surface area | Approximately 20% cheaper for equal surface area |
| Price Trend | Strong increase (up to +24%/year) | More moderate increase, depends on condition |
| Demand | Strong in urban and central areas | Stable or declining depending on location |
| Perceived Advantages | Modernity, warranties, energy efficiency, rental attractiveness | Entry price, central historical location, renovation potential |
| Liquidity | Easier to resell (high-end new) | Variable, sometimes takes longer |
Factors Influencing Resale Value
Location
Properties located in Ho Chi Minh City and Hanoi show the most marked increases, especially in central neighborhoods or near major infrastructure like recently inaugurated metro lines.
New apartments in developing neighborhoods benefit from infrastructure appreciation and increased demand.
Market Demand
Demand for new properties remains strong, particularly among young families and investors seeking security and rental profitability.
Old properties attract clients looking for more affordable prices or historical locations, but demand is more sensitive to the property’s overall condition.
Perceived Advantages by Buyers
New Real Estate:
- Builder warranty, low maintenance costs, recent energy standards, modern equipment.
- Attractiveness for short and long-term rental, particularly among expatriates.
Old Real Estate:
- Lower purchase price, renovation possibilities, access to central or historical neighborhoods.
Statistical Data and Recent Trends
- In 2024, the average primary sale price of apartments in Ho Chi Minh City reached about 76 million VND/m² (~3,000 USD/m²), representing an annual increase of nearly 24%.
- Over 70% of new supply concerns high-end to luxury projects, explaining the strong price progression in new properties.
- Old apartments trade between 40 and 70 million VND/m² depending on the area, representing a notable discount compared to new properties, but the gap is justified by condition, age, and absence of warranties.
Impact of Government Policies
- Measures promoting legal transparency, payment flexibility, and easier access to mortgage credit have supported demand for new properties.
- Tax incentives for rental investment and infrastructure investments (e.g., metro lines) primarily value new projects and rapidly developing areas.
- However, strict regulations on foreign ownership limit dynamism in the old segment, which attracts fewer international investors.
Perceptions of Vietnamese Buyers and Investors
The majority perceive new properties as safer investments, with long-term appreciation potential, lower maintenance risks, and superior rental attractiveness.
Old properties are perceived as opportunities for property access or lower-cost investment, but with uncertainty about future appreciation, especially in less dynamic neighborhoods.
Prospective Scenarios for the Next Decade
New Real Estate:
- Maintained sustained growth in major cities and developing areas, driven by continuous infrastructure improvement and attractiveness to foreign investors.
- Risk of overvaluation in certain high-end segments if supply exceeds real demand.
Old Real Estate:
- Stable or moderate appreciation, with opportunities in renovation or transformation of buildings in very central areas.
- Possible depreciation in less attractive neighborhoods or without significant urban renewal.
Key Takeaways
New real estate in Vietnam currently shows superior resale value, fueled by demand, perceived advantages, and government policies, while old properties remain attractive for their price and renovation potential, but with more uncertain long-term appreciation potential.
Good to Know:
In Vietnam, new properties often show higher resale value than old ones, due to growing demand for modern infrastructure and appeal for new urban developments, particularly in Ho Chi Minh City and Hanoi. Government policies favoring urban expansion have also stimulated interest in new real estate, leading to a 5-10% increase in resale prices in recent years according to local reports. However, location plays a crucial role, as some old properties located in highly sought-after historic neighborhoods maintain high value. Vietnamese buyers seem to believe, long-term, in better appreciation of new properties due to their low need for renovation and compliance with modern safety and energy efficiency standards. By 2030, the combination of economic growth and foreign investment could continue this trend, although regulatory changes or market slowdown could revitalize interest in more affordable old properties.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
