Similar increases were also recorded at apartment projects in Ba Dinh district such as Discovery Central, Vinhomes Metropolis…
Investing in rental real estate is still profitable
Real estate rental this year is considered a safe channel and receives a lot of attention. Survey results from a real estate information site also show that this type of apartment rental still has quite good growth momentum, and the level of interest remains at the top.
Specifically, investing in rental apartments is bringing a gross profit rate of up to about 12.5%/year, including increases from selling prices and rental yields. Of which, the apartment rental yield in Hanoi reached 4.6%, the apartment rental yield in Ho Chi Minh City was 4.1% and the average apartment rental yield nationwide was 4.5%. Even affordable accommodation prices tend to increase by 5-15% monthly.
In January this year, most apartment and boarding house rentals began to have increased occupancy rates again, many areas recorded over 90%, and tenant support policies almost disappeared. Mid-range apartment rental prices are currently about 10-15 million VND/month. Accommodation ranges from 1.5 to 5 million VND, depending on location and area.
In the context that young families’ ability to buy a house continues to be limited, the rental housing segment is a good choice for investors. However, financial expert advice, with an average profit rate of 4-5% and an asset value increase amplitude of only around 5% currently, this type is currently only for those capital school person.
Along with that, as rental supply increases, competitive pressure will also increase. To minimize risks, investors need to carefully calculate location, occupancy ability, costs incurred, and capital turnover before depositing money.
According to experts, investors should note that they should invest 20% of the estimated capital for small scale first, need to understand the “rent – lease” rule, know how to design, be good at renovation and repair, and be good at sales. room, responsible for management, operations and customer care. If the above factors are not enough, investors need to be careful when choosing this segment.
One unit reported that in just the last 4 years, apartment prices have increased by 77%. In a recent market report, Savills said that rental prices of all types of serviced apartments in two major cities increased year by year.
For example, in Hanoi, the rental price of serviced apartments in 2023 will reach 580,000 VND per m2 per month, an increase of 1% year-on-year. The occupancy rate reached 83%, of which Grade A had the largest growth of 4% quarter-on-quarter.
