Ho Chi Minh real estate market 2020: Apartments for rent are still “blooming”

real estate

As noted by Chintaisaigon, by the first quarter of 2021, the apartment rental market in Ho Chi Minh is going quite positively. Strong attraction comes from the new administrative center area with the advantages of location, high rent, and reputable developers’ brand value.

With such positive moves, will rental apartments continue to lead the real estate market in Ho Chi Minh 1? The answer will be in the article below.

The rental apartment market flourishes thanks to the boosted economy.

Chintai Saigon said that currently, Vietnam’s GDP growth ranks first in Southeast Asia. This growth is expected to continue in the next three years. Retail sales also increased by an average of 9% over the five years. Increase 12.7% YoY in the first three months of 2021. This development reflects the needs and confidence level of consumers and personal financial optimism and willingness to spend big money.

The above positive signals have affected price ranges. High-end real estate will have an accelerating momentum with the support of the economy. Especially the market of apartments for rent. As a series of exciting transactions by residential and commercial have flourished. Along with that, the infrastructure and transportation system has improved like the western area of the capital.

Up to now, the West still recorded the most substantial rental growth. Grade A apartments for rent are the largest in all segments. Rents of major branded projects increased by 19% compared to projects in the same part.

Mr. Phong has a 2-bedroom apartment at Estella Height For Rent. Currently, she is renting for an average price of 1200 USD / month, fully furnished. Meanwhile, the rental price of 2 – 3 bedrooms apartment in this project quoted by the landlord at a “bargain” price of about 1200 – 2500 USD / month. This high-profit rental is one of the projects highly appreciated by real estate experts with such an effective and profitable investment.

Dynamic in the rental market with a flexible product segment.

The East region of Ho Chi Minh City (District 2, District 9) showed a positive renewal when always catching up with the trend. At the same time, to market products that satisfy the needs of a wide range of customers.

According to Chintai Saigon, the Thao Dien Villa For Rent continues to lead with 80% growth. The line of villa rental products has also created an increase. Low vacancy rates in some segments place great demand for existing villa, house for rent. These two markets also promote the development of the multi-functional apartment market with full legal conditions.

Currently, projects in the East region have “caught the trend” quite well due to the structuring of multi-functional products, good location, intelligent design. Suitable for both living and office needs. Compact types of apartments such as studios, 1.5 – 2 bedrooms attract customers—besides, thanks to the cooperation with online service managers. Or directly apply rental operation technology through Airbnb, We Stay, Lux Stay. From there, supply and demand are also easily found through means.

Expect “golden” opportunities from foreign visitors.

As regarded, in the first two months of 2021, Ho Chi Minh continuously kept a strong investment attraction of 6.1 billion USD. With a foreign audience. Accounting for 23% of foreign direct investment (FDI) registered in Vietnam. Experts say that Ho Chi Minh is a destination for Japanese and Korean experts to live and work and welcomes other Asian human resources from Hong Kong, Singapore, and China.

With positive signals from the economy, the future picture of the apartment rental market will flourish. In particular, the western region, with its long-standing achievements, is always the bright center.

Besides, in the business plan of 2021, many real estate giants also choose emerging markets and cities as the locations for apartment development projects. Typically, Cat Tuong Group, Hung Thinh, Novaland. The aim is to catch up with urbanization and modernization. The supply of new housing in 2021 will tend to be less than that of 2020. In the context of still inventory, real estate credit is under control.

Investment in apartments for rent is still a popular trend in the coming years.

According to the forecast, by 2022, the market will welcome about 1,000-2,000 apartments for rent. Future supply concentrated in the CBD and new urban areas. It owns a series of commercial buildings and shopping centers. Meet the needs of the high-end segment.

There are also more projects in the market with adequate rental capacity. These are projects with good management and service quality. Provides full amenities for residents and is conveniently located. Tenants are mainly people from neighboring provinces. Or independent young people who cannot afford to buy a house will choose to rent a home.

This group of clients will prioritize the selection of projects that are convenient for births.

Some practical tips for the rental apartment business.

Foreseeing the growing market for villa thao dien for rent, the rate of business investment in this field also increased. However, the investor will need to identify several factors to implement the blueprint.

Consider your financial resources.

Finance can be entirely from your capital. Or combine additional partial loans to reach the required money for the plan. But wherever you are, you need a careful calculation.

In many cases, forms of bank loans consider to revolve capital and create financial leverage. The calculation to balance cash flows will be fundamental in using force.

Build mutually beneficial cooperation options

For a sublease model, it is essential to note the harmony of all three parties’ interests. Between the owner, you, and the individual tenant. Mutually beneficial agreements need to be reached with a reasonable profit margin for both owner and investor to maintain long-term cooperation.

Optimizing profits with apartments for rent.

For the sub-lease apartments, an acceptable form is to redistribute the space for optimal use. For example, they are dividing a large apartment into several rooms for rent. Thus, at the same length, the investor can achieve more profits.

With the practical form of rental apartment business above, investors combine with a detailed investment plan. Achieving optimal returns with this type of business is definitely within reach.

Hopefully, with the above useful information, you have a better overview of the apartment rental market. Regularly visit Chintaisaigon.com to update more information about the real estate market to have a suitable investment plan.

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