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Buying Real Estate in Installments in Vietnam: Terms and Payment Schedules

Purchasing real estate in Vietnam through installment plans is available to both citizens and foreign nationals. It is typically arranged directly with the developer during the construction phase (off-plan) and is divided into milestones leading up to property handover, spanning from 1 to 3 years with zero interest.

Because mortgages in Vietnam remain largely inaccessible to foreign buyers in practice, developer installment plans are in exceptionally high demand.

The local real estate market offers one of the most diverse and flexible payment schedule systems in Asia. Foreign buyers can choose from several structured payment models, each tailored to different investment goals.

Understanding these schedules is essential because:

  1. Discounts can reach up to 12%.
  2. The payment structure significantly impacts ROI.
  3. Some programs include bonuses for early payment.
  4. Certain options are more advantageous for foreigners.

In this article, we will thoroughly analyze each payment model, the mechanics of financial leverage, and the fundamental settlement rules when purchasing off-plan property in Vietnam.

4 Main Payment Schedule Models

Construction-Linked Payment Schedule

(Thanh toán theo tiến độ xây dựng)

This is the traditional Vietnamese payment structure used by the majority of developers.

Payments are tied directly to construction progress.

Typical Structure

Construction Stage / EventPercentage of Price
Signing the SPA10%
Foundation completion10%
5th floor construction10%
10th floor construction10%
Building frame completion10%
Block construction completion25%
Key handover5%
Issuance of the Pink Book (sometimes paid later)5%

Pros: High security (you only pay for what has already been built).

Cons: Minimal discounts (0–3%), timelines depend on the speed of construction.

Best for: First-time buyers in Vietnam or those who want to see progress on the construction site before parting with their money.

Date-Linked Payment Schedule

(Thanh toán theo thời gian cố định)

Payments are made on fixed calendar dates, regardless of construction progress.

Example

Stage / Payment DeadlinePercentage of Price
Signing the SPA10%
In 3 months15%
In 6 months10%
In 9 months10%
In 12 months10%
In 15 months10%
Key handover30%

Pros: You know in advance when and how much you need to pay. Plus, developers often offer discounts (3–5%).

Cons: You must pay according to schedule, even if construction suddenly slows down.

Best for: Those who need a clear payment plan independent of the developer's operational pace.

Low Monthly Payment + Balloon Payment at Handover

(Thanh toán hàng tháng + một khoản lớn khi bàn giao)

Increasingly popular among foreign buyers. This model reduces financial pressure during the construction phase.

Structure

Stage / Payment TypePercentage of Price
Monthly payments1–3% per month
Balloon payment at handover40–50%

Pros: Monthly payments do not strain your budget during construction.

Cons: Almost no discounts (0–2%), and you must be prepared for a large lump sum at the end.

Best for: Those who do not have the full amount right now, but know that funds will become available by the time the property is completed (e.g., from selling another asset or annual bonuses).

Early Large Payment Plans (50–70–95%)

(Thanh toán nhanh – nhận ưu đãi lớn)

This program offers the maximum discount.

Options

Advance Payment AmountDiscount Amount
50% advance5–7%
70% advance7–10%
95% advance10–12% (sometimes more)

Pros: Maximum discounts and the lowest price per square meter.

Cons: You need to have the full amount upfront; there is higher risk if the project is still at the excavation stage.

Best for: Investors with substantial free capital aiming to resell the property upon key handover.

Summary Table: Payment Schedule Comparison

Payment PlanRiskLiquidityDiscountBest For
Construction-LinkedLowModerate0–3%Beginners, cautious buyers
Date-LinkedModerateModerate3–5%Investors with predictable income
Low Monthly + BalloonModerateLow at start0–2%Those seeking flexibility
Accelerated AdvanceHighHigh5–12%Professional investors

Choosing the Right Payment Plan

When selecting a payment scheme, foreign buyers should base their decision on two key factors:

1. Liquidity and Cash Flow Stability:

Stable income → Date-linked schedule

Unpredictable income → Low monthly payment plan

Substantial savings → Early advance payment plans (50–95%)

2. Your Investment Strategy:

Long-term ownership for personal use → Construction-linked schedule

Quick resale → Accelerated advance payment (70–95%)

Rental yield → Depends on key handover timelines and project commissioning

Upon successful key handover, the foreign buyer becomes the full owner and assumes responsibility for ongoing maintenance (e.g., management fees) and financial obligations.

Payment Structure for Completed Properties

Completed properties (primary developer inventory or secondary market) follow a different rule:

Developer Inventory

The buyer makes a 95% advance payment and receives the keys immediately.

Secondary Market

  • SPA transfer (assignment) → usually 95–100%
  • Pink Book handover → on the same day as notarization (the buyer pays the seller in full)

Financial Leverage: How Installment Plans Increase ROI (The Felix Case Study)

In Vietnam, installment plans act as financial leverage. Returns are calculated not on the total price of the apartment, but on the capital you have actually invested.

A real-life example from our team:

In July 2025, our client invested in The Felix project (Binh Duong). Over 6 months, the market value of comparable apartments increased by approximately 18.4%.

Since payments were made in installments, at the time of the revaluation, the investor had only paid about half of the apartment's value. The price appreciation was divided not by the full price of the property, but by the actually invested capital. As a result, the return on invested capital (ROI) reached 42%. The installment plan simply amplified the outcome.

A detailed analysis of this case study can be found in the article "Structural Growth Strategy: How Vietnam's Industrial Corridors Generate Investor Returns".

A smart choice of installment schedule, combined with professional support at every stage, minimizes risks and increases the potential investment return in Vietnam's growing real estate market.

How VINPROP Helps with Real Estate Purchases

Investment Consulting and Transaction Support

We select properties to match your budget and investment goals, compare projects and installment terms, calculate potential yields, and accompany the transaction from reservation to formalization.

Legal Consulting

We review the project's legal documents and contract terms, analyze developer obligations, buyer rights, and potential transaction risks.

Property Management

We handle post-handover ownership matters: monitoring property conditions, liaising with the management company, and organizing routine maintenance.

Fit-out and Furnishing

We help prepare your apartment for living or renting out — from selecting furniture and appliances to fully outfitting the property.

FAQ

How much does an apartment cost in Vietnam?

The price of an apartment in Vietnam depends on the property class, location, and construction stage. On the primary market in developing and resort locations (e.g., Binh Duong or suburban districts), prices start at 1.5–2 billion VND (approx. 60,000–80,000 USD). In major cities (Ho Chi Minh City, Hanoi) for comfort and business-class segments, prices start at 3,000 USD per sq. m and up, while premium properties can cost significantly more.

What are the benefits of buying real estate in Vietnam?

For foreign investors, purchasing real estate in Vietnam is primarily an opportunity to preserve and grow capital, achieve high returns from resale in a growing market, or secure stable passive rental income.

When buying residential real estate, the transaction is formalized via a Sale and Purchase Agreement (SPA) with subsequent acquisition of a Pink Book (ownership certificate) within statutory quotas (up to 30% in condominium blocks).

It is important to note that owning property in Vietnam does not automatically grant the right to obtain a residency permit (TRC) or citizenship.

Can I pay installments in cash US dollars or Euros?

No. According to Vietnamese law, all settlements with developers must be conducted strictly via bank transfer and exclusively in Vietnamese Dong (VND).

Can foreigners get a mortgage in Vietnam?

Starting in 2025, the new Housing Law in Vietnam formally allowed foreigners to apply for mortgages, but in practice, obtaining such a loan remains extremely difficult for non-residents. Local banks require official employment in Vietnam, a Work Permit, a Temporary Residence Card (TRC), and a stable, verifiable local income.

For this reason, the vast majority of foreign buyers and investors utilize interest-free installment plans offered by developers.