Apartment rental market in Ho Chi Minh City

Day post: 20-09-2017
According to experts, the demand for apartments for rent is very high, especially in densely populated areas.
Is it easier to rent an apartment than to sell an apartment?
According to C.T Group, the investor of the Bee Home apartment rental project in Tan Binh district, HCM City, 173 apartments have been rented to customers. Rental rates are divided into two types, for the lease of 6 years, the rental price is 2.5 million per month. If the tenant pay the monthly price will be 7 million / month. The market is still under construction. The investor is building another block of 145 apartments with the same rental rates. Up to now, 30% of apartments have been registered by customers. tax.
CT Group's representative said that Bee Home's business strategy is to target young customers, employees, teachers ... Because they are often newcomers, In and only afford the rent instead of buying.
Another prominent rental apartment project is Le Thanh Twin Towers of Le Thanh Company as an investor in Binh Tan district. The project consists of 625 apartments with an average floor space of about 35 square meters, with a rental price of VND240 million for 15 years. Thus, the average monthly rents paid out more than 1.3 million. After 15 years, the owner will withdraw the apartment for refurbishment and further lease.
According to research conducted by CBRE Vietnam, the rental market has become "hot" when many projects transform into utilities. For example, the project Dragon Hill (Nha Be district, HCMC) of Phu Long Company, in addition to the standard apartments also have apartments for rent, especially for serviced apartments. The apartments area of ​​65-125 square meters have a rental price of 600-1,500 US dollars per month (including furniture).
Need support from the State
According to Le Huu Nghia, Director of Le Thanh Company, rental housing is one of the solutions to "icebreaker" the market, while creating the force to attract the market up. This is the best way for people who are not able to buy a home.
Nghia hopes businesses and authorities will soon find specific solutions to the market for many affordable rental apartments that most people can afford.
According to Le Hoang Chau, chairman of HCMC Real Estate Association, in developed countries, the market often thrives on rental apartments. This is a response segment for young start-ups, young families or the urban poor. At first they rented houses, until they accumulated enough money, they would switch to buy a house. Then, the apartments returned by the tenant will continue to serve the new customer class.
Meanwhile, in Vietnam, very few businesses are willing to build apartments for rent, mainly for investors who buy apartments and lease them out as an investment channel. "The business is not willing to make apartments for rent because the cost of project investment is too large, while the rental must be collected in bulk. The state still does not focus on the type of apartments for rent, making this market can not develop, "Chau said.
According to Chau, the legal corridor of the rental apartment has no sample contracts between customers and businesses. The most important thing is that this type of apartment is not legally recognized when it has not been issued a title certificate. Therefore, in order to make sure that the tenant is able to rent a flat for a definite term, the State should issue a definite ownership certificate for this type of apartment so that the client can pledge or transfer the right to rent in the apartment. time to rent an apartment. In addition, it is also necessary to support credit for low-cost rental housing projects, about 2-3 million per apartment per month, to encourage businesses to invest.
Not only developing the type of apartment for rent by the private, experts say that the State should also invest in the development of apartments for rent to the urban poor, low income people ... conditions are okay determined life. As the rental market develops, it will help the real estate market to be more sustainable.
Many redirect rental projects
While the supply of apartments for rent at reasonable prices is showing signs of scarcity, in the high-end segment, many projects have recently been turned to developers for rental.
For example, Tan Binh Investment - Construction Company has leased 20% of apartments in the apartment project on Hoang Van Thu street (Tan Binh district) for rent. The rent of this project is about 5 million VND per month with apartment 47 square meters.
The Waterfront project on Ton Duc Thang Street (District 1) also has more than 180 rental apartments. Or as New Pearl project on Nam Ky Khoi Nghia (District 3) also has 161 apartments for rent. Sherwood Residence (District 3) after more than five years of operation, now renovates the interior of the apartment for tenants. The Saigon Sky Garden project (District 1) continues to separate large apartments for clients who are single, young professionals who enjoy the hustle and bustle of the downtown area.
According to inquiries, the occupancy rate of the apartment rental projects mentioned above is quite high. Experts said that in the context of luxury apartment segment is showing signs of slowing down, investors redirecting to rent apartments is reasonable by ensuring the revenue is quite good and stable ...
Source: Saigontimes