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According to the Batdongsan.com.vn’s 2024 Binh Duong Apartment Market Overview, the average rental yield for apartments in Binh Duong province currently stands at 4.7%, outperforming Hanoi’s 3.7% and Ho Chi Minh City’s 3.6%. The latter figure also represents the national average rental yield for apartments in 2024.
Notably, several projects in Binh Duong province have recorded apartment rental yields ranging from 6% to 7.5% per year, which can be considered a record high in Vietnam, almost doubling the rental yields of apartments in Hanoi and Ho Chi Minh City.
The luxury apartment segment is considered the driving force behind Binh Duong’s impressive rental yields. Despite offering purchase prices that are 30-200% lower than those in Hanoi, Ho Chi Minh City, and other major cities, Binh Duong maintains high rental rates and stable occupancy levels. This makes it easier for investors to enter the market while still ensuring high profitability.
According to Batdongsan.com.vn, apartments priced between VND 45-50 million/sq m in Binh Duong already meet the standards of luxury properties. Rental rates can reach VND 12 million/month for a one-bedroom apartment, VND 15-16 million/month for a two-bedroom unit, and VND 18-20 million/month for a three-bedroom apartment.
In contrast, in Ho Chi Minh City and Hanoi, apartments priced at VND 45-50 million/sq m can only fetch rentals of around VND 7-12 million, depending on the number of bedrooms.
“The occupancy rate for luxury apartments in Binh Duong is approximately 80-90%, with some projects almost always fully occupied. This is due to the high demand fueled by the robust growth of industrial parks, attracting a large number of workers and experts,” said Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn.
As the southern industrial hub, Binh Duong currently accommodates approximately 45,000 experts and professionals. Despite the market demand from this discerning group of tenants, Batdongsan.com.vn assesses that Binh Duong lacks high-quality housing options with luxurious designs and modern amenities that cater to the needs of experts, senior managers, and high-income earners.
According to data from Batdongsan.com.vn, as of Q4 2024, the proportion of luxury and high-end apartments in Hanoi and Ho Chi Minh City stood at 74% and 41%, respectively. In contrast, Binh Duong experiences an extreme scarcity of such properties. Apartments priced above VND 40 million/sq m account for only 7.16% in Thu Dau Mot, 2.36% in Thuan An, and are entirely absent in Di An.
Binh Duong faces a shortage of luxury apartment supply.
Many foreign experts in Binh Duong have shared the challenges they face in finding apartments close to their workplaces that offer a full range of amenities, such as swimming pools, gyms, children’s play areas, green spaces, and robust security systems. This supply-demand gap presents a significant opportunity for investors to focus on developing premium projects, enhancing competitiveness, and diversifying the province’s real estate offerings.
Notably, the upcoming expansion of National Highway 13 (Ho Chi Minh City – Thuan An section) is expected to transform the urban landscape, improving transportation and potentially triggering a wave of migration to the area. Binh Duong province, particularly Thuan An city, will benefit significantly from this infrastructure boost.
Additionally, the Ho Chi Minh City Ring Road 3 and the Ho Chi Minh City – Thuan An section, slated for completion in 2025, will further enhance inter-regional connectivity.
According to a brokerage survey conducted by Batdongsan.com.vn, the integration of industrial and residential areas will be a significant trend in Binh Duong in the coming years. The province is expected to witness a wave of new projects from prominent developers, addressing the shortage of supply, especially in the luxury segment.
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