Attractive liquidity from inner-city apartments
The real estate market has recently been compared to a psychological “trap” that causes many people to “miss” the opportunity to settle down. Inner-city real estate prices in major cities including Hanoi continuously create waves and establish new price levels.
This is explained by the fact that the central districts are always attractive to investors because there is always a high demand for housing, attracting a large number of people, both Vietnamese and foreigners, to live. work, travel. Besides the attraction of its central location, the inner city area also brings many “best” things to be proud of such as the busiest, the most modern infrastructure, the most convenient transportation, the most advanced services, and the best pace of life. the most dynamic and cultural interference… These are especially favorable conditions for entrepreneurs, experts or celebrities to easily connect and work to maximize their talents and values. .
Therefore, real estate in the central area brings dual value to investors. This is a channel to store asset value while still ensuring good profits for investors with great rental potential and long-term price increase opportunities. At the same time, the attractive liquidity of real estate products in the central area is always high.
In the future, the supply of high-end real estate in the central area is unlikely to increase much, because the land fund is increasingly shrinking and strict planning regulations. This explains the imbalance between supply and demand for projects that already have good locations and are also well invested in terms of quality.
Therefore, after the trend of leaving the city for the forest, investing in suburban land based on projects, farm land, homestays…, many people have returned to investing in inner-city apartments due to the liquidity of this type. This is better.
According to Savills, in the next 3-5 years, the supply of inner-city apartments will still be scarce due to depleted land funds, and many projects have legal problems that cannot be resolved immediately. The projects that can be launched at this time are extremely few and are a good opportunity for investors to invest money. After the rental period, investors can sell. The rate of return on apartments is still quite good, while there is more rental cash flow.
Is the era of hotel apartments coming?
On the apartment market, there are currently many product lines with new, modern models, catching up with the tastes of young consumers, people with modern lifestyles… These are apartments with accompanying amenities that do not inferior to 5-star hotels such as entertainment areas, swimming pools or even housekeeping, laundry, etc. Compared to hotels, this type is more popular with consumers because the rent is cheaper. These products are called “hotel apartments” and are often chosen by customers who are engineers, foreign experts or young people with jobs with good income. Investors say that although hotel apartments do not bring in large sums of money “immediately”, they are guaranteed to create a stable cash flow.
Although it has not been on the market for long, hotel apartments have proven the advantages of this type of product. Savills research shows that the occupancy rate of serviced apartments in Hanoi reaches 83%, while the capacity in 2023 in Ho Chi Minh City reaches 82% (according to the fourth quarter of 2023 report).
