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According to CBRE data, in real estate projects in Ho Chi Minh City there are up to 30% of investors buying house for the purpose of rental investment.
Looking at this market, the easiest to find by typing the keyword on the network “find a rental house in Ho Chi Minh City”, it will have thousands of results with the rental advertisement from apartment to townhouse. New apartment projects posted the most.
“Look at the present apartments at the night, how many apartments are bright lights, how many are dark lights. The real point of the market that a lot of apartments are bought by investors to invest the rental then no one to hire” Mr. Le Hoang Chau, President HoREA.
When selecting a phone number to rent an apartment of large project in District 1, Ho Chi Minh City. A man named Hung said that he rented the apartment out to us at 1000$ per month. Mr. Hung said that he bought this apartment for nearly $ 175 thousand for investment purposes. When he received the house by the end of 2016, he invested about $ 13 thousand for furniture because of the fully furnished apartment that rental price is higher and easier to rent.
“The apartment is fully furnished, the location is nice, the rental information has been posted 2 months but very few customers ask for rent,” Hung said. According to reporters, this project has the highest information on the web today.
Also invest in buying apartment in Chu Van An apartment building, Binh Thanh District for rent with the low price. Ms. Tran Thi Thuy chose to rent without furniture at only 300$ per month. However, her apartment was not been rented for three months.
Not only the apartment market but also the townhouse market is very few people hiring. For example, located on Truong Quoc Dung Street, Phu Nhuan District, at the intersection of Truong Quoc Dung and Nguyen Van Troi connected to the airport and center of District 1, but the 3-floor house of Tuan rented at $2,175 per month still no one asked.
“Previously, I rented this house as housing for employees out to companies at $3,478 a month because the house is 120 sqm, but after the company returned home, nearly 4 months still no one asked to rent. The reason is that the house is quite large, the demand for housing is reduced sharply, so I have to reduce the price but still slump “, said Tuan.
According to the reporter’s understanding, the rental housing market is now in a slump situation because there are many reasons. In particular, Nguyen Huy Vu, general director of BANVIETLAND Company, said that the supply of apartment projects was born too much, a number of people invest secondary to buy the project in 2009 when the crisis market cannot sell off swivel investment shaft rental apartment for profit.
“In addition to the TPP information signed in 2016, consulting firms expect that a large number of foreign experts working in Vietnam will increase the housing market. However, in 2017 the US withdrawal from the agreement as well as the agreement risk not to do make the market heavily affected because there are too many investors to buy apartment for rental purposes and then disillusioned, ” Vu said.
The slump of this segment is evident in just finding information for rent in Ho Chi Minh City can see thousands of information for rent apartment with a large difference. For example, in Binh Thanh District on Nguyen Xi Street, there are two apartments, namely Saigon Loi and Saigonres Plaza. Prices offered at these two apartments are completely different, also with fully furnished apartments, but Saigonres Plaza has an asking rent of $740 and Thuy Loi is $600 per month. However, the information hired to rent of two projects is still long without released by anyone.
Vu Van Sang, an investor in this segment, he said he owns four apartments and a townhouse. However, from the end of last year to now, his 3 apartments in District 1, Phu Nhuan District and Thu Duc District, tenants returned home and posted rental information but no one has signed to hire. The reason is that the past few projects were born, many tenants, now the new projects have the competitive rental rates, so customers will find affordable, fully furnished apartments.
“The slump in the real estate companies are now announcing buying flats that promise to make a profit, investors find it attractive to buy and the lease is the investor’s concern. This is a good of market because it makes the market more professional, but it creates a lot of supply while the demand is low, the amateur rental market as I will not compete with rental professional companies makes the market slump, “Sang said.
In order to find a new direction, Sang said he would sell two apartments to take money to convert his investment purpose because of leaving empty apartments, the bank loan interest that he borrowed before will be very heavy with him.
According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, there will be more difficulties because the apartment and townhouse segment in Ho Chi Minh City is out of phase. Speculators often choose high-end apartment to buy for the purpose of investment for rent, while the rich in Ho Chi Minh City is not much, demand for high-end rental of foreign experts is not high. Therefore, according to market forecast information that rushed the investment but did not know the stop has led to market influence.You are reading the article An Insider Star “massively” appealed to the investor claiming an interest in the Real Estate category at https://realestatevietnam.com.vn/.
You are reading the article Investors Are “Disillusioned” Because Of Rental Housing Investment in the Real Estate category at https://realestatevietnam.com.vn/.
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