(Dan Tri) - Experts say the ban will affect the central apartment market, in the mid- to high-end segment. Apartment prices and rental prices will be affected in the short term.
Short-term rental apartments are booming
Working in the event organization industry, often having long business trips in Ho Chi Minh City, Ms. Nguyen Ha (Hanoi) chose to rent an apartment for short-term stays.
She said that apartments offer conveniences such as spaciousness, the ability to accommodate many people, cook together, and live comfortably like at home. In particular, the price of renting an apartment is also cheaper than other traditional types of accommodation, saving costs for the company, especially when traveling in groups and staying for long periods.
Grasping the needs of customers like Ms. Ha, the market for renting apartments for short-term accommodation in Ho Chi Minh City has grown strongly in recent years. The areas where this service flourishes are often in central locations, with convenient transportation and apartments in the mid-range segment and above, concentrated in areas such as District 1, District 4, and Binh Thanh.
However, along with that, renting also causes many consequences affecting the security of the apartment building and the lives of residents in the area. Ms. Minh Thuy, a resident of a project in District 4 (HCMC) complained that the apartment next door was rented for short-term stays but was always noisy, leaving late at night and returning early.
Tenants constantly come and go, litter in the wrong places, get drunk and yell in the hallway... which makes her and the families on the same floor find it hard to accept. Despite making a complaint to the apartment management board, this situation has not improved.
A few days ago, Ho Chi Minh City issued a regulation prohibiting the use of apartment buildings for short-term accommodation services. Ms. Thuy said she and other residents were very happy.
Ho Chi Minh City bans short-term rental services in apartment buildings (Photo: Trinh Nguyen).
A survey by Dan Tri reporters shows that apartments for living but used for short-term accommodation services are common in Ho Chi Minh City. Rental prices are also varied, from 500,000 VND/day to 1-2 million VND/day, depending on the area and location of the project.
In District 4, along Van Don Wharf, dozens of apartments are rented out for this service. In Binh Thanh District, an urban area on Nguyen Huu Canh Street with a huge number of apartments, the supply for short-term rentals is also high. Similarly, an urban area of several hundred hectares in the old District 9 (now Thu Duc City) is also flourishing with short-term apartment rentals.
A resident in the urban area on Nguyen Huu Canh Street (Binh Thanh) said that out of the 600 apartment blocks, about 350 are for living. According to clear registration information, of the 160 apartments for rent, only 20% are for long-term rental, while 80% are for short-term rental. It is known that this urban area has dozens of blocks.
Multidimensional impact on many target groups
Experts agree with Ho Chi Minh City's ban on using apartments for short-term accommodation services.
Responding to Dan Tri newspaper reporters, Mr. Vo Hong Thang - Deputy General Director of DKRA Group - said that this decision is reasonable, because the Housing Law 2023 clearly stipulates that apartments are used for residential purposes and cannot be used for other purposes. In addition, the living environment is also better guaranteed for residents, ensuring security, limiting social evils, and ensuring fire and explosion prevention and safety.
Assessing the impact of the regulation on the real estate market, Mr. Thang said that the management boards of many apartment buildings have applied restrictions or bans on short-term rentals. Previously, in the Ben Van Don area (District 4), both short-term and long-term rental prices were very good. However, due to the consequences and noise from short-term rentals, many apartment buildings have banned this service many months ago.
Data collected by DKRA Group shows that rental prices have decreased by about 15-20%. In the short term, Mr. Thang believes that secondary apartment prices will be affected. But in the long term, secondary prices will not decrease because projects in the central area all have the characteristic of being in prime locations.
Sharing the same view, Mr. Dinh Minh Tuan - Southern Regional Director of Batdongsan.com.vn said that the regulations of Ho Chi Minh City will affect the central market and the high-end segment more. Because the short-term rental business model is often implemented in central areas, convenient for travel.
This person believes that in projects with active short-term rental activities, the selling price and rental price of apartments usually increase. However, when Ho Chi Minh City makes the above decision, the market may be strongly affected in the rental apartment segment, long-term rental will be less attractive. Apartment rental prices in the coming time may remain stable, but in the long term, the market will adapt to the policy and rental prices will not fluctuate too much.
According to Mr. Tuan, the current rental profit rate for apartments in Ho Chi Minh City is about 3%/year and has been maintained for quite a long time, although it was previously at 4-5%/year. This figure shows that apartments are less attractive for buying and renting. The market may shift capital flow from residential apartments to serviced apartments.
Many people think that the decision of Ho Chi Minh City will affect the tourism accommodation service. However, Mr. Thang opposes it because there are too many products to replace short-term rental apartments. There is no shortage of hotels and serviced apartments in Ho Chi Minh City, with diverse segments and prices. Therefore, Mr. Thang also hopes that the hotel industry will revive.
In case the city has a ban but the short-term accommodation business in apartment buildings continues, experts advise that there should be specific regulations and sanctions. For example, apartment owners and business people who are found to have signs of "circumventing the law" or "working illegally" will be subject to administrative penalties. If "working illegally" causes fires and explosions, or causes social evils, they may be held criminally responsible.
Source: https://dantri.com.vn/bat-dong-san/cam-cho-thue-luu-tru-ngan-han-trong-can-ho-chung-cu-o-tphcm-gia-co-giam-20250306090415635.htm
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