The Hanoitimes – Many in HCM City have turned to buying homes to rent in the context of a sharp fall of deposit interest rates and the frozen real estate and stock market.
A recent study by CBRE Vietnam indicated that the leasing out is an important factor in the decision to buy a home for Vietnamese people, particularly in HCM City, and this trend has become more popular in this city.
According to CBRE, the Vietnamese real estate market is facing a continued slump, which makes for an opportune time to buy houses with an intention to rent them out. Rental properties can bring investors a stable source of income, and when the property market recovers, they can sell the houses at a profit.
Truong An Duong, Savills Vietnam’s Associate Director of Advisory & Residential Services, said that only around 4,000 apartments are rented foreigners in HCM City, while the number of foreigners in HCM City is quite high, creating a potential market for rental property owners.
The trend is not new, but has grown stronger in HCM City recently because of its low risk and high potential returns.
According to Mr. Truong Nam Duong, apartment projects in Binh Tan District, District No. 2 and Nam Sai Gon area have attracted the most customers.
The Phu My Hung urban area located, at Nam Sai Gon, is one of the most desirable apartment projects in HCM City among foreigners. A 70-square metre room there is leased for around USD800 per month.