(CLO) In the future, the supply of luxury apartments in the central area can only be "expected" from serviced apartment projects or renovation projects of old apartment buildings and collective houses.
At the workshop “Potential of Lease Home apartments”, held on the afternoon of December 23, Dr. Nguyen Van Dinh, Chairman of VARS shared that high-end lease homes (lease homes) are developing strongly to meet the demand for temporary and long-term housing of the middle and upper class in Vietnam. This is also a segment targeting international experts, which is being promoted by foreign direct investment and the expansion of high-tech industrial parks.
However, the supply of high-end apartments for rent in Hanoi, especially in the central area, to meet the above-mentioned increasing demands is still low due to the lack of new projects opening for sale.
Illustration photo.
Specifically, in 2024, the supply in Hanoi has grown strongly after a period of severe decline, with about 30 thousand new products for sale. However, the supply in the central area of Hanoi still only contributes about 1% to the total supply of apartments for sale in the city.
“In the future, supply in the central area can only be expected from serviced apartment projects or renovation projects of old apartments and collective houses,” said Mr. Dinh.
Meanwhile, Mr. Le Dinh Chung, General Director of SGO Homes, said that the rental apartment market in the center of big cities is relatively developing with rental prices maintaining a stable increase and a high occupancy rate of over 80%.
This segment targets high-end customers, including foreign experts and people with economic conditions, including generation Z. The criteria for choosing apartments to rent for these groups are location, amenities, product quality and management unit.
Mr. Chung believes that investing in apartments for rent will bring customers double profits from steady rental cash flow and sustainable added value over time.
In the context of the scarce supply of high-end, luxury apartments in the central areas of big cities, luxury long-term rental serviced apartments, managed and operated by reputable units with a system of high-class utilities, in the central area, will be an attractive investment channel for real estate investors when there is a stable source of income from long-term customers, experts, and the foreign community.
"This is also a product line that has received a lot of attention in recent years, with investment capital shifting from the sea to the city," said Mr. Chung.
Although many opinions highly appreciate the prospects of this segment, an issue related to the story of ownership time of leased apartments (lease home) has created some debate.
Accordingly, grade 1 projects in the inner city area will have a lifespan of about 50 years. Regarding this issue, in the Discussion, many opinions said that the lifespan of high-end apartments in the inner city area is positive. Thus, if choosing projects that are ready to be put into use in the central area that are well managed and operated, the ability to recover capital is very fast.
Furthermore, with a selling price about 40% lower than that of permanent apartments, investors can use this cost to invest in other types of products to diversify their investment portfolio and maximize profits.
To achieve investment efficiency, from a legal perspective, Lawyer Nguyen Thanh Ha, founding lawyer of TNTP Law Firm, said that serviced apartment buyers need to pay attention to 3 groups of issues, including the legal issues of the investor when implementing the project, the legal issues for long-term tenants and between tenants and landlords, which can be the investor, the management and operation unit or individual investors.
Source: https://www.congluan.vn/nguon-cung-can-ho-cao-cap-chi-co-the-trong-cho-vao-cac-du-an-cai-tao-chung-cu-cu-post327103.html
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