Apartments in Ho Chi Minh City are expensive, is buying and renting effective?

Apartment prices continue to rise

Although not a "hot spot" in the market, apartments in Ho Chi Minh City have been quietly increasing in price recently. After several months of surveying and considering, Mr. Nguyen Ngoc Tan (30 years old, Khanh Hoa) finally decided to buy an apartment in a project in Thu Duc City, Ho Chi Minh City, for about 3 billion VND. With limited finances, he planned to buy new apartments for sale, priced at about 2 billion VND, but admitted that he could not find any.

Some projects that were slow to start are now starting to restart, and they have also adjusted their selling prices up by 10-30%. After hesitating to buy for a few months, Mr. Tan also saw the apartment prices increase a little.

Reports from many market research units also show that the selling price of new apartments in Ho Chi Minh City continued to increase steadily in the third quarter. CBRE Vietnam pointed out that the average selling price in this market reached 66 million VND/m2 of net area, up 4% quarter-on-quarter and nearly 8% year-on-year, largely due to old projects adjusting their selling prices higher during the new opening phase.

Apartment prices in Ho Chi Minh City are recorded to continue to increase (Photo: Trinh Nguyen).

Savills Vietnam released a report recording a similar price range, reaching VND68 million/m2. This unit believes that the selling prices of new projects recently are still at a high level and tend to increase in price for the following sales phases.

Dat Xanh Services Economic - Financial - Real Estate Research Institute (Dat Xanh Services - FERI) also pointed out that the selling price of new projects in Ho Chi Minh City maintained an increase of 5-10% and increased in most segments. Particularly, high-end apartments had the strongest price increase, increasing by 15-20% compared to the same period last year. Investors and real home buyers, it is time to consider investment opportunities in the apartment market of Ho Chi Minh City and satellite cities.

The rising apartment prices also change customers' acceptance of the market. The survey showed that 33% of customers chose real estate priced at 3.5-5 billion VND. This rate is higher than customers choosing products under 2.5 billion VND (24%), customers choosing apartments of 2.5-3.5 billion VND (18%).

This unit believes that there has been a shift in customer interest in the price range from low-mid to high-mid according to the new price level in the market.

Calculate rental efficiency

In the context of increasing apartment prices, if buying for investment, experts say that you should reasonably calculate the purchase price, rental yield, and suitable type to achieve the highest efficiency. In the suburbs of Ho Chi Minh City, choosing a one-bedroom apartment... are suggestions from experts.

Mr. Vo Huynh Tuan Kiet - Director of Housing Project Marketing Department, CBRE Vietnam - analyzed that the average rental yield of apartments in Ho Chi Minh City is about 4-5%/year. However, suburban areas of Ho Chi Minh City such as Binh Duong have better rental yields, at 6-7%/year.

Because the price of apartments in the suburbs is still "softer" than in Ho Chi Minh City, while it is possible to rent at a good price, about 7-13 million VND/month depending on the apartment. Therefore, the stable profit rate and low price level have promoted the demand of investors in the suburbs, considering between investment channels. Mr. Kiet admitted that the trend of moving to the suburbs is not new, but the interest of investors and buyers is becoming clearer.

Mr. Dinh Minh Tuan - Southern Region Director of Batdongsan.com.vn commented that during the sales openings, new projects of 1-bedroom apartments are often in a state of "sold out" or have high booking rates.

The two main reasons for this include low total cost, easy rental yield and higher rental yield than 2, 3, 4 bedroom types. Data results for the period 2023-2024 show that one-bedroom apartments with an area of ​​less than 55m2 have the highest rental yield with an average of 6.52%/year to 11%/year.

Therefore, Mr. Tuan believes that with apartments bought for rent, if the rental rate is good, it is no different from depositing money in the bank and increasing the price every year.

Source: https://dantri.com.vn/bat-dong-san/chung-cu-tai-tphcm-gia-cao-ngat-mua-cho-thue-co-hieu-qua-20241016102735956.htm