Apartments for rent in Binh Duong return to the race to attract investment cash flow

Apartments for rent in Binh Duong return to the "race" to attract investment cash flow

If investing in apartments for rent in Hanoi and Ho Chi Minh City is not the most optimal option for cash flow and profit, where will be the destination for smart money?

Through two-thirds of 2024, the real estate market witnessed a positive recovery in terms of interest, supply and selling prices. Three revised laws related to real estate are expected to increase market transparency, help investors feel more confident in their investment decisions, and diversify product portfolios and geographic areas.

Previously, it was quite common for Northern investors to “go South” and often focused on the resort real estate segment in Phu Quoc (Kien Giang), Phan Thiet ( Binh Thuan )…

However, from mid-2024, in the context of apartments being the segment with the highest growth rate and most active transactions, investors will start looking for apartments for rent to generate cash flow in provinces with developed industrial economies.

According to the real estate market data for the third quarter of 2024 recently released by Batdongsan.com.vn, Binh Duong is the outstanding "bright spot" of the Southern market with the strongest growth rate: up to 32% over the same period last year.

If 5 years ago, land was the segment that accounted for an overwhelming proportion of supply and transactions in the Binh Duong market, then in the past 5 years, apartments have witnessed strong growth.

In the first 9 months of this year, Binh Duong apartments held the top position in terms of interest. Specifically, the apartment buying and selling market increased by 6%, the rental market increased by 33% compared to the beginning of the year.

Apartment segment in Binh Duong will increase "heat" in 2024.

Notably, the level of interest is mainly concentrated in apartments in areas near Ho Chi Minh City such as Di An city and Thuan An city (Binh Duong). As the leading industrial capital of the country, Binh Duong has a high population growth rate with a population density and immigration rate of 26.4%, leading the country, the real demand for housing is very large.

According to records, the selling price of apartments in the three hot spots of Di An, Thuan An and Thu Dau Mot fluctuates on average from 28 - 33 million VND/m2, which is considered affordable compared to Ho Chi Minh City.

However, in early September, the project developer Dat Xanh Mien Bac officially "launched" the Benhill apartment market in Thuan An city (Binh Duong) with a selling price of only 26 million VND/m2, equivalent to 1 - 1.5 billion VND/1 - 2 bedroom apartment, causing a fever in the real estate market on the outskirts of Ho Chi Minh City. The "reappearance" of apartments priced at 1 billion VND after a long "disappearance" has made the real estate market in Binh Duong and Ho Chi Minh City more exciting than ever. At the same time, this is also a rare price in the industrial cities and provinces in the North, so the project is also attracting the attention of many investors in the North.

Benhill is causing a "fever" in the market with its almost extinct selling price in Binh Duong and the surrounding areas of Ho Chi Minh City, from only 26 million/m2.

Ms. Thuy Duong - an investor from Hanoi analyzed the cash flow problem when choosing to invest in Benhill apartments: "With 2-3 bedroom apartments priced from 1.5 - 2.4 billion VND, fully furnished in Thuan An, I can earn 9 - 14 million VND/month from renting, quickly calculating the annual profit will reach 6.5 - 12%".

Meanwhile, if choosing the Hanoi and Ho Chi Minh City markets, investors will have to spend an average of 4 - 5.5 billion VND to own a 2-bedroom apartment, the rental price ranges from 10 - 15 million VND/month/fully furnished apartment. Thus, the profit margin is only 3 - 4%/year.

Ms. Thuy Duong assessed that Benhill apartment has great rental potential with its location right in the center of Thuan Giao - Thuan An, surrounded by large industrial parks of Binh Duong such as Viet Huong, VSIP, VSIP 1, Dong An, Song Than; colleges and universities such as Binh Duong University of Economics and Technology, Vietnam Singapore Vocational College...

This is also a rare project in Binh Duong that has completed legal procedures, is eligible for sale right from its launch, and has a long-term pink book, so she feels very secure when putting down money to "fish far from shore".

Not only that, customers who own Benhill apartments in the first sale are given maximum financial support with 3 flexible payment options. If choosing to use financial leverage, customers only need to invest from 385 million VND until receiving the house, supported to borrow up to 60% of the apartment value, 0% interest rate for 18 months.

Customers who pay according to standard progress will receive a 3% discount with 7 flexible payments within 18 months. Customers with available finances who want to choose the early payment option will receive a discount of up to 6% on the selling price.

In addition to the potential for high-yield rental, Benhill apartments are also expected to bring double profits from price increases over time, proportional to the development momentum of Thuan An - Binh Duong.

For more information, please contact: Dat Xanh Distribution System