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Apartment for rent in Vietnam – a potential investment market
Ho Chi Minh city rental market
Mr. Peter Hoang, the founder of brokerage firm Rentartment Agency, said that the scarce supply made 2019 also witnessed the change between the demand for resale investment and investment for rent when the amount of real estate products posted. for sale only increased by 40% and for rent increased by 50%. This shows that, instead of surfing sales, many customers are turning to rental investments.
Report of housing market of the Rentapartment Agency shows that this group of properties has risen sharply in 2019. Specifically, statistics from real estate markets online, in 2019, the price of private houses in Some HCMC districts have increased by nearly 30% compared to 2018, while the asking price has increased by only 15-16%.
With townhouses and apartments for rent in areas such as Saigon District 1, District 10, Tan Binh, Binh Thanh and Phu Nhuan also increased sharply. Notably in District 1, the increase increased to over 35%, while the asking price increased by only 10-20%.
The increase in Saigon apartment’s rent price faster than the selling price is a unique development compared to the rest of the market. Because in the apartment segment, the selling price always increases faster than the rent. Even when the market has many apartments for rent at the same time, the rents are reduced locally due to competitive output.
“We saw in the report that, in 2020, rental properties increased by 50%. This means the market is reacting. And if prices continue to rise, people will rent more. And I believe this trend will continue to intensify in 2020, until the market corrects again, ” Peter Hoang said.
Hanoi city rental market
According to the third quarter report of Alpha Housing Hanoi, the apartment rental market in Hanoi has been quite positive and was driven by optimistic signals from the economy. Strong attraction comes from the new administrative center area with the advantages of location, high rents and brand value of prestigious investors who are and will lead the market.
Positive economic signal, prosperous apartment for rent market
Savills survey and research unit (Vietnam) said Vietnam’s GDP growth is at the top of Southeast Asia and will continue to grow in the next 3 years. Retail sales also increased by an average of 9% in the 5 years, an increase of 12.7% year-on-year in the first 9 months of 2019, thereby reflecting the needs and confidence level of consumers, optimism about talent. personal and willingness to spend on large consumption. The positive signal also impacts on high price areas and real estate will have a driving force to accelerate with support from the economy.
The continuous improvement of the main economic indicators has brought “bright colors” to the rental market. The most positive feedback came from markets that had been actively traded because the population and commerce had flourished, infrastructure and transportation systems had improved like the west of the capital.
Up to now, the West has recorded the strongest rental growth and the largest additional area of rent in the Hanoi market. In particular, the Grade A apartments for rent reached the largest number in the segments. This data clearly indicates a large demand and explains the 4% increase in average asking rent as well as high occupancy of 84%. Particularly in the Grade A segment, rents of large-brand projects increased by 19% compared to other projects in the same segment.
Specifically, Mr Tue owns a high-end D’Capitale apartment (the project is located in the west center of Hanoi), currently renting his 2-bedroom apartment with an average rent of $ 1200 per month with high furniture. grant. Along with that, the price of one-bedroom apartment – 1.5 bedrooms in this project is also rented by apartment owners with a “good price” of about 800 – 900 USD / month. On the other hand, apartments for rent according to the investor handover will have a slightly lower price, averaging US $ 500 – 650 / month / unit of 2 bedrooms. This project, being evaluated by experts and investors, offers high and sustainable rental potential.