After a period of stagnation due to the Covid-19 epidemic, the apartment market for rent in Ho Chi Minh City began to warm up when economic activities returned to normal.

Report  real estate market in the second quarter of Ho Chi Minh City, Savills said that the rental capacity of the serviced apartment segment reached 74%, up 10% over the same period last year. The average rent increased slightly by 1% compared to the previous quarter, reaching nearly 500,000 VND / m2 / month.

This real estate market research unit assesses that the serviced apartment market is entering its most exciting phase since the beginning of 2020, when the Covid-19  epidemic began to appear. After Vietnam opened up, the group of foreign experts, especially from Japan and Taiwan working in the construction and manufacturing industries returned, along with the supply from international students and workers returned. Vietnam after a long period of closure helps demand for serviced apartments grow

However, the unit's expert pointed out that the rental apartment segment, which competes directly with serviced apartments, has a large supply and more attractive rents. The average rental price of serviced apartments is 40% higher than the average rent of Grade A and B apartments in Ho Chi Minh City.

The second quarter real estate market report of Batdongsan also recorded an increase in interest in the apartment rental market in Ho Chi Minh City by  27%, 3 times higher than the interest in single-family homes.

The survey of this real estate site shows that in areas far from the center such as Binh Tan district, apartment rental prices have increased by 10-20% compared to the same period in 2021. Many "projects" have rental rates. 6.5-9.5 million VND/month for 2 bedroom apartment. In central areas like District 3, current rents also increased by 10-20% over the same period last year, ranging from 12-30 million VND/m2 depending on the area and amenities of each apartment.

Vo Thi Khanh Trang, Deputy Director of Savills Research and Consulting Department, said that in the last 5 years, apartment rental prices have grown well by about 5% per year before the epidemic. Next year, when the economy tends to recover, apartment rental prices are gradually increasing back to pre-epidemic levels.

In addition, customers who buy apartments to invest in rental in addition to the monthly rent also have an additional profit from the increase in the price of real estate. Particularly, the profit from apartment rental compared to the purchase price of real estate in Ho Chi Minh City ranges from 3.2%/year to 6.5%/year. This number is not too high, but investors also benefit from the increase in real estate prices.

Source: DAN TRI