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Suspected Of ‘Circling Figures’ In The Apartment Market Report, What Does Savills Say?

Savills is suspected of 'circling figures' in the apartment market report

The report “Apartment Market – Big Wave” announced by Savills recently said that the profit margin of apartment rental in Hanoi is higher than HCMC. However, some experts say that the data is inaccurate and questioned about the objectivity of the Savills report.

Specifically, on September 29, Savills Vietnam has published the report “Apartment Market – Big Wave”. In this report, Savills reported that rental income in Hanoi was 7.4%. HCM is 5.8%. This figure is higher than other regional cities such as Jakarta (5.2%), Kuala Lumpur (4.8%), Manila (4.3%), Bangkok (4.0%), Singapore (3.7% %).

However, according to some real estate experts, this data is inaccurate. Nguyen Van Duc – Deputy Director of Dat Lanh Real Estate Company, said that the profit rate of leasing apartments in Hanoi might not be higher than the HCM city.

“In Ha Noi, the rich are very much, so the amount of investment, speculation is very large, while demanding for renting apartments of people is lower than TP. HCM. Hanoi has many but less demand and TP. Ho Chi Minh City, the same supply and demand should rent apartments in the HCM city is always better.

“The rental market in HCMC always has. The small, cheap apartments, the higher the rental rate is high. For example, the apartment selling §34.783 with the area of 40 sqm can rent §261 / month, or 9% / year. The same apartment but in Hanoi, the highest profit rate is just 7 – 8% only, “said Mr. told Vietnamnet.

According to Tran Khanh Quang, General Director of Viet An Hoa Company, if Ha Noi exploits rent only 3 – 4% per year on the total value of assets, HCM city can reach 5 – 6%. The rental price of real estate HCMC is better because the demand for large rental, parking area, circulation, service is superior.

Savills is suspected of 'circling figures' in the apartment market report
Savills apartment market report suspected of “circus figures”

In response to these criticisms, Troy Griffiths, Savills Vietnam deputy director, said that Savills’ data is reliable.

According to Troy, Savills’ rental yield figures are quoted by Numbeo.com, which collects online information from tenants at the start of 2017 (noted in the report). “Numbeo’s rents are flat so it’s a good idea to have a higher estimate than the usual calculation. In addition, Numbeo’s survey results are time-sensitive, which may change with the market’s supply/demand absorption. Although Number is not a random sampling source, Numbeo’s data are used extensively throughout the world to compare cities, nations, “Troy said.

In response to the question of whether Savills “circled the data” for the company’s business, Troy insisted there was no such thing as all the data came from independent sources.

“In the segment of serviced apartments (serviced apartments), Savills does not currently manage and distribute any of these buildings throughout Hanoi, so there is absolutely no Savills report to advertise for the project. Savills’ purpose is to provide analytical reference reports for each indicator with the aim of providing a comprehensive, multidimensional view of the overall picture of the market.

General assessment of the potential rental market in Hanoi, Troy said that the rental rate of a project will depend on many factors, including the most important location and design of household

“In general, when people’s income still needs to accumulate over a long period of time, it is possible to buy a house, so renting an apartment is one of the initial options for those who have demand for housing, “Troy said.

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Suspected Of ‘Circling Figures’ In The Apartment Market Report, What Does Savills Say?
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