Vnexpress, VOV
More high-end apartments for rent have reduced returns on investment in Ho Chi Minh City, real estate professionals say.
Duong Thuy Dung, senior director at real estate market research firm CBRE Vietnam, said at a recent forum that Ho Chi Minh City was estimated to receive 40,000 new apartments in the 2018 – 2020 period, 60% – 70% of these in the high-end segment.
About 60% – 70% of the high-end segment are being bought by investors who look to rent them, she added.
Rental returns have decreased as a result, Dung said, adding that the rate in Ho Chi Minh City’s District 2, often the highest earners in the city, has fallen from 7.5% last year to 6.5% – 6.7% now.
The same is happening at Binh Thanh District, where they have dropped from 6.8% last year to 5.5% now.
A CBRE report notes that real estate purchases for occupation have decreased this year. Instead, investors account for 61% of buyers in the high-end segment, higher than last year’s 50%.
The number of occupiers, meanwhile, was just 26%, against last year’s 35%.
The CBRE findings have been confirmed by another report by real estate market research firm Savills Vietnam. It said that from 2013 – 2017, over 70% of high-end residence buyers in Hanoi were investors. The figure is 65% in Ho Chi Minh City.