Once a flexible, high-yield model for property owners, short-term condo rentals (particularly on platforms like Airbnb) have also raised persistent concerns about security, noise, and friction among residents, building managers, and local authorities.
The issue is far from new. After years of mounting disputes, Ho Chi Minh City imposed a full ban on short-term condo rentals in 2025, drawing a firm line under an increasingly contentious practice. Now, that line is being redrawn. Authorities have officially reopened the door, but this time, with tighter regulations.
The rise and backlash of Airbnb rentals in apartment
Since emerging in Vietnam around 2017, Airbnb-style rentals within apartment buildings have become popular, especially in major cities. They attract travellers with greater privacy, home-like convenience and flexibility, compared to traditional hotels. By 2026, there were 8,740 Airbnb condo rentals in Ho Chi Minh City and 4,596 active listings in Hanoi.
They are mostly concentrated at high-end residential complexes, such as Millennium, Saigon Royal, Masteri Thao Dien (Ho Chi Minh City), D’Capital, Keangnam and EcoPark (Hanoi). With modern amenities and central locations, these listings attract strong demand, with occupancy rates reaching up to 70%. At average nightly rates of VND 900,000–2 million (USD $34-76), apartment owners can earn around VND 95–100 million per year, equivalent to an estimated 15% return on investment.
Yet the boom has triggered strong backlash from long-term residents. In Hanoi and Ho Chi Minh City, resident forums buzz with complaints of diminished quality of life, such as chaotic elevator usage, overcrowded parking garages, and strained shared facilities like pools and gyms. Nocturnal parties, poor waste management and general rowdiness have disrupted the serene living environments that long-term residents prized.
Security risks add to these concerns. Unlike hotels, which have 24/7 staff and clear fire safety procedures, many short-term rentals lack consistent oversight and emergency preparedness, increasing risks in high-rise buildings.
Many apartment buildings have seen repeated incidents such as drug use, stimulant abuse, prostitution and fights linked to short-term guests. Police have been called in multiple times to handle these cases. In Hanoi, in 2023, residents at the Keangnam building said that some individuals have rented out entire apartment floors, converting them and subletting rooms for drug parties.
Without strict management and clear records of who comes and goes, such rentals are difficult to monitor, and violations can occur at any time.
In response, the 2023 Housing Law prohibits the use of apartment units for non-residential purposes, including short-term rentals when treated as a commercial service. Many building management boards in Hanoi and Ho Chi Minh City have put up bans or tightened controls, viewing such activity as unregulated and non-compliant.
In March 2025, Ho Chi Minh City banned short-term apartment rentals, including those via platforms like Airbnb, before reopening them in 2026.
From outright ban to strict regulation
Ho Chi Minh City’s People’s Committee has issued Decision 19/2026/QĐ-UBND on the management and use of apartment buildings, set to take effect on April 25.
Rather than a full ban, the new regulation allows apartment use to align with the type and intended function of each unit. For short-term tourist rentals within apartment buildings, owners are now required to register as licensed accommodation providers and comply fully with Vietnam’s tourism laws.
The decision also offers clearer rules on the use of shared spaces, such as lobbies, parking areas and commercial zones. Revenue generated from these areas must be deposited into the building’s maintenance fund, ensuring it is reinvested into the property and managed with greater transparency.
In terms of operational responsibilities, Decision 19 stipulates that both apartment owners and operators must fulfil their tax obligations, maintain security and public order, and ensure that tenants comply with building regulations.
This regulation comes as the 2023 Housing Law still clearly states that using apartment units for non-residential purposes is against the law. However, Ho Chi Minh City’s approach does not allow arbitrary conversion; instead, it introduces a registration mechanism, treating short-term stays as a regulated form of temporary residence rather than purely commercial activity.
Meanwhile, in Hanoi, enforcement continues to rely on the 2023 Housing Law as well as the rules set by each building management board.
Balancing interests or compromising security?
According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the decision to allow short-term apartment rentals for tourism and accommodation, while requiring owners to comply with regulations, reflects proposals the association has repeatedly put forward.
HoREA had previously argued that short-term rentals are not illegal and do not contradict the “residential use” purpose defined under the 2023 Housing Law. The previous ban affected around 9,000 Airbnb apartments in Ho Chi Minh City, forcing them to suspend operations. It caused significant financial losses for many who had taken out loans to invest, led to job losses, reduced accommodation supply and the city’s tourism competitiveness.
However, apartments are not hotels. Nguyen Quoc Khanh, vice chairman of the Vietnam Association of Realtors (VAR), warned that the constant turnover of short-term guests makes it difficult to monitor residency and maintain order, especially in buildings not designed to operate like hotels.
The association also noted that the previous ban helped bring apartment prices down by around 10%, improving access for owner-occupiers. This comes amid concerns that the rapid growth of short-term rental models has driven up long-term rents and pushed housing prices beyond the reach of many residents.
Allowing while regulating short-term stays in apartment buildings is expected to help Ho Chi Minh City address a longstanding dilemma: whether to loosen or tighten control over a model that generates significant tourism revenue while also posing risks to management, public order and security.
However, it remains unclear whether residents – those actually living in buildings with Airbnb units – will be adequately protected under the new regulation. Many listings still operate with minimal contact and self-service check-ins, raising questions about how owners will ensure compliance and how authorities will effectively enforce the rules.
Until the new rules prove effective in practice, the trade-off between economic gains and residents’ rights will remain unresolved.
