Mr. Tran Van Tien (Dong Da, Hanoi) shared that he invested in 2 plots of land in Bac Ninh since 2022, but by the end of 2023 he decided to sell them to get money to invest in an apartment.
" The market is quiet and it is unknown when it will recover. Meanwhile, the price of my two plots of land has decreased by 20% compared to when I bought them. Therefore, in order to not have my cash flow "buried" for too long, I decided to sell these two plots of land for more than 7 billion VND and invest in 2 apartments in Hai Ba Trung district (Hanoi) ," said Mr. Tien.
It is known that the two apartments Mr. Tien just bought cost 7.2 billion VND, and he is currently renting both apartments for 13 million VND/month/apartment.
" Currently, apartment prices are increasing well, so if I keep it for a long time, the property will still be profitable, while I still have monthly cash flow for spending, " said Mr. Tien.
Like Mr. Tien, Ms. Nguyen Thi Minh (Cau Giay, Hanoi) also said that she had just withdrawn more than 4 billion VND from her savings book to buy an apartment in Cau Giay district.
Many investors are switching to buying apartments instead of villas for easy rental. (Illustration photo).
At this time, savings interest rates are very low, while apartments are selling for good prices, so I decided to withdraw my savings to buy an apartment.
" I am renting this apartment for 12 million VND/month. The apartment has 2 bedrooms and has basic furniture. Meanwhile, if you save money with an interest rate of 4%/year, the interest is not worth much, " said Ms. Minh.
According to Mr. Nguyen Minh Duc - a real estate broker in Hanoi, currently, many people with available cash flow and wanting to invest long-term still choose apartments because they bring good profits from rental income and price increases. At present, apartments still have a more stable profit than some investment channels such as stocks, gold...
" Currently, the rate of increase in people's income cannot keep up with the rate of increase in housing prices. Prices are climbing, and future apartment projects will have high prices because the investor's costs are pushed up. Many young families in the city tend to rent apartments because their economy is not enough to buy a house ," Mr. Duc affirmed.
According to PropertyGuru's Consumer Sentiment and Trends (CSS) report, rising house prices and a difficult economic situation are expected to increase the rental trend in the first half of 2024.
Of these, apartments are the type of real estate that most tenants are interested in (43%), followed by private houses (18%) and boarding houses (18%). Only a small portion (9%) are interested in townhouses for rent.
Mr. Le Bao Long, Strategic Director of PropertyGuru Vietnam, also commented that for investors with a long-term vision, rental apartments are still an attractive investment channel because they have a high average profit rate (combined price increase over time and rental profit), around 12.5%/year. This is a better and more stable profit rate compared to many other investment channels such as stocks, gold, foreign currency, land, savings, etc.
“ Access to apartments is becoming increasingly difficult as income growth cannot keep up with housing price growth. In the future, primary apartment projects will have high prices because investors have to optimize profits when costs are pushed up, which partly explains the current trend of many young families renting houses ,” Mr. Long analyzed.
Mr. Tran Quang Trung - Director of Business Development of OneHousing also said that in Hanoi, the average selling price of primary apartments increases by 10-15% per year. On the contrary, due to poor liquidity, investors' capital is still "stuck" in land, resort real estate or low-rise houses.
" In my opinion, this is the time to invest in real estate that can be used for living or rented at a good price and wait for the price to increase ," said Mr. Trung.
Mr. Trung pointed out that currently, the market is shifting investors, instead of being loyal to low-rise products, with the same amount of money, they switch to buying 10 mid- to high-end apartments.
Simply because with the same investment capital, a villa can be rented for 50-60 million VND/month and there is no cash flow mobility. Meanwhile, with 10 apartments, investors can earn 15-18 million VND/apartment, the total rental income is up to 180 million VND/month. Of course, the price of mid-range and high-end apartments will also increase gradually over time.
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