Binh Duong is emerging as a bright spot in the real estate rental market with attractive yields, far surpassing both Hanoi and Ho Chi Minh City - Photo: NGOC HIEN
According to the report Overview of Binh Duong Apartment Market 2024 published on January 20 by Batdongsan (member of the Group) PropertyGuru), the average apartment rental yield in Binh Duong is currently 4.7%, far exceeding the 3.7% of Hanoi and 3.6% of Ho Chi Minh City.
Some projects in Binh Duong even recorded impressive yields of 6-7.5%/year, nearly double that of the two big cities.
According to this unit, rental yields in Binh Duong achieved high growth rates largely due to high-end apartments here having reasonable purchase prices, while rental prices are high and occupancy rates are stable.
On average, each luxury apartment in Binh Duong (purchase price is about 45 - 50 million VND/m2) can be rented at 12 million VND per month for a one-bedroom apartment, 15 - 16 million VND (two-bedroom apartment) and 18 - 20 million VND for a three-bedroom apartment.
However, if in Ho Chi Minh City or Hanoi, an apartment priced at 45 - 50 million VND/m2 can only be rented for about 7 - 12 million VND per apartment depending on the number of bedrooms.
Speaking with Tuoi Tre Online, Mr. Dinh Minh Tuan - Southern regional director of Batdongsan - said that the occupancy rate for luxury apartments in Binh Duong is about 80 - 90%, even some projects are almost always full of tenants.
According to Mr. Tuan, the high demand for rental is due to the strong development of industrial parks, which has attracted a large number of workers and experts. Binh Duong is currently in the top of the country in attracting FDI and second in immigration rate.
“Among the 5 largest rental real estate markets in the country, besides Hanoi and Ho Chi Minh City, Binh Duong is the leading locality in both the amount of interest and the growth rate of interest, surpassing other provinces and cities such as Da Nang, Hai Phong, and Khanh Hoa.
By the third quarter of 2024, the number of searches for apartments to rent in Binh Duong had increased by 58% compared to the first quarter of 2021," Mr. Tuan analyzed.
Regarding customer structure, Mr. Tuan said that the interest in Binh Duong apartments mainly comes from the demand for investment and some real residence of Ho Chi Minh City residents, along with the real residence demand of local people. Of which, customers from Ho Chi Minh City account for 49%, customers from Binh Duong and neighboring provinces account for 33%.
Despite leading in yield, the Binh Duong market is seriously lacking in supply of high-end apartments. The proportion of apartments priced above VND40 million/m2 in urban areas such as Thu Dau Mot and Thuan An accounts for only 7.16% and 2.36% respectively.
Foreign experts often have difficulty finding accommodation close to their workplace that offers modern amenities such as swimming pools, gyms, children's play areas, green spaces and good security systems.
According to a survey from Batdongsan, urban areas combined with industrial parks will be a big trend in Binh Duong in the coming time. It is expected that Binh Duong will continue to welcome new projects from major investors, meeting the shortage of supply, especially in the high-end segment.
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