Investing in Student Housing in Vietnam

Published on October 1, 2025 and written by Cyril Jarnias

Investing in Student Housing in Vietnam: A Strategic Opportunity

Amid dynamic economic growth and a steadily increasing student population, Vietnam’s real estate market is transforming into fertile ground for investors. Student housing, in particular, is emerging as a promising sector, combining strong demand with the appeal of potentially high returns.

While rapid urbanization in Vietnamese cities accelerates the need for affordable student housing, evolving national education policies also support this trend.

Thus, investing in student housing in Vietnam could represent a strategic opportunity for investors seeking profitable diversification, while contributing to improving living conditions for future generations.

Analysis of the Student Housing Market in Vietnam

Demand for student housing in Vietnam is experiencing sustained growth, driven by increasing numbers of domestic and international students, urban dynamics in major university cities, and evolving housing preferences.

Current Demand Trends

• Strong concentration in major metropolitan areas: Ho Chi Minh City, Hanoi, and Nha Trang account for the majority of student demand.
• Annual growth in the number of international students, attracted by Vietnam’s affordable universities.
• Seasonal fluctuations: peak demand around university start dates (August-September) and relative decline during school holidays.

Region	Student Demand	Seasonal Fluctuation
Ho Chi Minh City	Very High	High
Hanoi	High	Moderate
Coastal Cities (Nha Trang)	Growing	Moderate

Economic, Demographic and Cultural Factors

• Rapid urbanization with development of new economic hubs.
• Government policies promoting university internationalization.
• Growing purchasing power among some Vietnamese families allowing students to access more comfortable or private housing.
• Preferences for:
  • Furnished studios near campuses
  • Modern shared housing in secure residences
  • Included services (high-speed wifi, laundry)

Key Market Players

• Specialized local developers (e.g., Novaland)
• Private managers of modern student residences with integrated services
• Digital platforms facilitating short-term rentals or shared housing

Innovative Technologies Used

Non-exhaustive list

• Mobile applications for contactless rental management (digital payments, remote maintenance)
• Online platforms specialized in student housing (geolocated search)

Opportunities for Investors

Supply still insufficient to meet growing demand, especially in city centers

Stable rental market with low vacancy in well-located segments

Major Challenges:

• Changing regulations on residential vs. commercial use
• Need to adapt supply to new requirements: enhanced security, collaborative common spaces

Opportunities:

• Targeted development near new university campuses or emerging industrial zones
• Diversification into premium shared housing or themed accommodations for international students

Regional Comparison

Country	Current Dynamics	Specificity
Vietnam	Rapid growth; limited supply in “premium” student segment; recent technological advancement
Thailand	Mature market; many international student residences already established
Indonesia	Strong urban potential but institutional supply still weak

The Vietnamese market therefore stands out for its upward phase with strong untapped potential for investors capable of innovating technologically and qualitatively.

University Residence Yield Criteria

Occupancy Rate Evolution and Impact on Profitability

Occupancy rates of university residences are a key performance indicator. In Vietnam, growing domestic and international student populations support high occupancy rates in major university cities. Rates above 90% are common in residences located in Ho Chi Minh City or Hanoi, ensuring stable profitability. However, seasonal fluctuations exist, particularly during university holidays or at the beginning/end of the academic year, which can temporarily affect income.

Criterion	Vietnam (major cities)	Western Markets
Average Occupancy Rate	90–95%	85–90%
Seasonal Volatility	Moderate	Low to Moderate
Gross Rental Yield	6–8%	3–5%

Student Tenant Retention Strategies

• Offer flexible contracts (semester/academic year).
• Implement administrative support to facilitate the settlement of international students.
• Organize community events and activities to strengthen attachment to the residence.
• Provide exclusive benefits (discounts, referral programs, priority renewal).

Importance of Geographic Location

Proximity to university campuses, public transportation, shops, and student life areas is crucial for maximizing occupancy rates and rental value. In Ho Chi Minh City and Hanoi, well-located residences show near-full occupancy, while peripheral locations suffer from lower demand.

Operating Cost Management and Optimization

• Maintenance costs: approximately 2% of the property’s purchase value annually.
• Optimization through shared services (cleaning, security) and integration of energy-efficient solutions (LED lighting, smart resource management).
• Partial outsourcing of non-strategic services (catering, laundry) to reduce fixed costs.

Analysis of Infrastructure and Services Offered

University residences in Vietnam typically offer:

• Furnished rooms (wifi, air conditioning)
• Common areas (kitchen, study room, gym)
• 24/7 security
• Additional services (laundry, catering)

However, the level of equipment and comfort varies significantly depending on the residence’s standard (public vs. private) and price range. High-end residences attract international and affluent clients, while the public segment remains basic.

Impact of Seasonal Variations on Yield

• Increased demand during university start dates and exam periods.
• Decreased occupancy rates during summer holidays and Tet (Lunar New Year).
• To mitigate impact, some residences offer short-term rentals to tourists or interns during intersessions.

Development Prospects of the Market in Vietnam

• Continuous growth in student numbers and development of international agreements.
• Attractive investment with net yields above regional average (6–8%).
• Market still not highly institutionalized, leaving significant room for growth for private operators and foreign investors.
• Challenges: regulations on foreign ownership, lack of student jobs limiting purchasing power, heterogeneity in residence quality.

Comparative Analysis and Investment Potential Summary

Factors	Vietnam	Mature Markets	Attractiveness for Investors
Rental Yield	6–8%	3–5%	High
Occupancy Rate	90–95% (major cities)	85–90%	Strong Stability
Regulation	Less institutionalized	Stricter	Opportunity but caution
Services/Infrastructure	Variable, improving	Standardized	Rapid Evolution
Student Demand	Growing	Stable or saturated	Strong Potential

The Vietnamese university residence market presents high investment potential thanks to attractive yields, rising demand, and significant development prospects. Success depends on strategic location selection, quality of services offered, and rigorous operational management.

The Impact of Erasmus Shared Housing on Vietnam’s Student Housing Market

The Erasmus+ program is a major initiative for international student mobility, facilitating exchanges for over one million students annually across Europe and beyond. It aims to strengthen the internationalization of higher education institutions, develop intercultural skills, and improve youth employability. This mobility, typically lasting between 2 and 12 months, also promotes academic cooperation and pedagogical innovation.

In recent years, there has been a gradual increase in the number of student shared housing arrangements in Vietnam involving Erasmus program participants. This trend is explained by the diversification of Erasmus destinations, the growth of partner universities in Vietnam, and the desire of international students for an immersive and economical experience. Major Vietnamese university cities such as Hanoi, Ho Chi Minh City, and Da Nang concentrate the majority of these shared housing arrangements due to their academic and cultural attractiveness.

Effects on Student Housing Demand in Major Vietnamese Cities:

• Increased demand for temporary or flexible housing, suited for short or medium-term stays.
• Heightened search for shared housing to benefit from a multicultural environment and reduce costs.
• Seasonal increase in rental pressure, particularly at the start of the university semester.

Changes in Housing Supply (Typology and Prices):

Impacted Housing Type	Observed Evolution	Consequences on Prices
Individual Studios	Less sought after by Erasmus students	Stagnation
Shared Apartments	Strong demand growth	Significant Increase
Private Student Residences	Supply adaptation, creation of shared spaces	Slight Increase

• Property owners adapt their supply by creating more shared or flexible housing.
• Rents for shared housing are rising, particularly for properties located near campuses or in central neighborhoods.

Impact on Local and International Investors:

• Local investors develop new student residence projects incorporating common spaces and services tailored to an international clientele.
• International investors, attracted by the growth potential of the Vietnamese market, inject capital into real estate projects targeting foreign and Erasmus students.
• Intensified competition for acquiring properties suitable for shared housing, leading to increased land value in some university districts.

Opportunities and Challenges for the Vietnamese Student Housing Market in the Future:

Opportunities:

• Diversification of rental supply (shared housing, hybrid residences, connected housing).
• Development of complementary services (concierge, administrative support, coworking spaces).
• Strengthening the attractiveness of Vietnamese universities to international students.

Challenges:

• Market regulation to prevent speculation and ensure housing accessibility for Vietnamese students.
• Need to adapt safety, comfort, and housing quality standards.
• Management of intercultural cohabitation and prevention of conflicts related to lifestyle differences.

Key Takeaway:

The development of Erasmus shared housing is energizing Vietnam’s student housing market but requires structural and regulatory adaptations to meet the new needs of international and local students.