Exciting market for foreigners to rent
Currently, foreigners can buy houses in Vietnam (VN) but because of fear or due to non-long-term use, many people still choose to rent. The trend of apartment investment for rent for foreigners is growing, becoming a high and stable source of profit.
Renting a house in Vietnam is cheap and easy
Sharing with us, Mr. Kwan Shin, CEO of K&V International Co., LTD, a tenant, said that thanks to his friends, he found a very nice apartment in the center of District 1. The apartment has area of 90 m² with fully furnished, high-end facilities for rent of $1,100/month. “For a house like this, if you are in Korea, you will have to pay twice the price, about $2,500/month,” – Mr. Shin said. Mr. Shin’s criteria for choosing a place to live are a good security area, a civilized community and a secure living environment.
Mr. Phuong, marketing staff of the real estate project in Binh Thanh District, Ho Chi Minh City, said that most foreigners rent houses through brokers, travel companies or acquaintances. All procedures and signing of contracts are carried out very quickly.
Regarding the tenant, Mr. Quang Vien (residing in Binh Thanh District, Ho Chi Minh City) said that over the past few years, he has chosen to invest in buying apartments for foreigners to rent because of high profits. “If it is my apartment for rent, in addition to monthly rent, the apartment value increases every day. Most foreigners renting houses live alone, simply and do not damage the house. Moreover, the rent for them is usually low, so they do not compare and bargain much and the landlord is more profitable”- Mr. Vien revealed.
Similarly, another owner, Ms. Hong Hau, said that compared to depositing in a bank, buying a rental apartment is more profitable. “The cash received between deposit interest rates and rent is not much different. However, if you choose an apartment with a good position, the value of the house will increase very high and the profit is very greater”- Miss Hau said.
According to Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), the number of foreign businessmen and professionals coming to Vietnam is increasing. Many businesses have invested strongly in the type of rental apartments, making the supply become abundant and the market is more vibrant.
Mr. Chau assessed the serviced apartments solve the problem of both staying and working of foreigners. On the other hand, this type of apartment also solves the startup problem for young people in the country. In buildings, serviced apartments are arranged on a number of separate floors. This is an area where domestic and foreign entrepreneurs are concentrated, so there is an ecosystem similar to the startup ecosystem.
According to Savills report, currently, there are nearly 100,000 foreign experts living and working in Vietnam. They are senior staff from multinational corporations, consultants to work under contracts in Vietnam, staff of foreign aid projects and non-governmental organizations. This means that demand for serviced apartments is increasing significantly.
Also according to this unit, the situation of leasing serviced apartments is always high and stable up to 80% -85% and tends to increase strongly. Especially at the end of the year, the number of foreign experts coming to Vietnam by projects also increases, which will be the golden time of the serviced apartment market.
Real estate experts note that when building rental apartments, investors must carefully study the location and market. The project must have a convenient infrastructure system, especially roads, facilities such as near hospitals, supermarkets, public transport nodes … to attract tenants.