Short-term rentals fear restrictions

Investors in Ho Chi Minh City who provide short-term apartment rental services are at risk of being fined or losing their deposits under a strict new ban.

- Linh Ngoc

Ho Chi Minh City People's Committee has banned daily and hourly accommodation rentals on apartment buildings, except for mixed-use complexes including apartments for renting to official tourists.

Decision No.26/2025/QD-UB-ND dated February 27 provides stricter regulations on the operation of apartment buildings which were licensed for residential only. The decision guides that for apartment buildings with the sole purpose of use for residence, the apartment rental must have a contract signed between the apartment owner and the person in need of renting, the rental purpose must be established for residence only, not for tourism renting.

With the number of apartment towers soaring in recent years in Vietnam's biggest city, many owners lease their properties exclusively to short-term renters, having the higher yield.

According to real estate expert Tran Khanh Quang, apartments for rent on the market are currently divided into two segments. "Average qualified apartments with the prices from $80,000-120,000 per unit are not affected by this ban because this segment is suitable for long-term rental, with the yield from 4-5 per cent per year," Quang said.

"Meanwhile, investors renting out midto high-end apartments, with prices from $120,000-200,000 per unit, are facing difficulties. Because this type of apartment is mainly located in the central area, short-term rental business will bring higher profits, with the yield from 5-6 per cent per year," added Quang.

In Hanoi, where short-term rentals remain legal for now, property owners are watching closely. Many fear Ho Chi Minh City's policies could soon extend to the capital (see below).