Sharing at the workshop “Potential of apartments for rent” on the afternoon of December 23, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that real estate prices in the central area are on an upward trend. The average apartment price in the 4 central districts of Hanoi has doubled compared to the beginning of 2019, 30% higher than the average increase in the whole of Hanoi.

For example, Hai Ba Trung and Dong Da are the two districts with the best price growth rate in the past 5 years, due to the relatively good price level compared to newly opened projects in the suburban areas. Newly opened projects in the past 3 years have continuously adjusted their prices, about 10% after each opening phase. New apartment projects opened for sale in 2024 with common prices from 125 million VND/m2. Serviced apartments are priced at about 88 million VND/m2 (excluding VAT and maintenance fees).

In the context of rising apartment prices, if you have more than 5 billion VND in cash, should you switch your investment to rental serviced apartments?

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With more than 5 billion VND, should you invest in a serviced apartment for rent? Photo: Hoang Ha

Mr. Le Dinh Chung, General Director of SGO Home, said that many investors tend to look for real estate with dual profit sources when there is stable income from rental and profit from asset growth.

Therefore, if you have 5.5 billion VND, Mr. Chung suggests, investors can find a flexible real estate that generates cash flow and can be used for living or renting. With such a flexible real estate, it will not be difficult to sell it later.

According to Mr. Chung, serviced apartments in the center of big cities such as Hanoi and Ho Chi Minh City have received attention in recent years due to their stable income from long-term guests, experts, and the foreign community.

Moreover, the price of serviced apartments is 35-70% lower than the market in the same segment, but the rental price of serviced apartments is 25-50% higher than that of long-term apartments. This shows that serviced apartments for rent are real estate products that bring high investment efficiency.

Sharing on the sidelines of the workshop with VietNamNet reporter, Dr. Nguyen Minh Phong, an economic expert, assessed that the demand for renting serviced apartments is expanding. Tourists coming to Vietnam now have better conditions, want to stay and experience and relax, they really need rental real estate with high-class amenities.

Along with that, a group of highly skilled, high-income workers also want to find serviced apartments to rent.

However, the supply of serviced apartments is not much, only aimed at serving tourists but not at groups of business travelers, experts, businessmen, etc.

Mr. Phong believes that the trend of serviced apartments with high-end amenities will continue to grow strongly in the coming time, especially in big cities. Therefore, investors need to focus on quality living space, modern amenities, environmental friendliness, etc., which will be important factors to attract tenants, especially experts, foreigners and investors.

However, Mr. Nguyen Thanh Ha, founding lawyer of TNTP International Law Firm and associates, noted that when investing in serviced apartments, buyers need to pay attention to a number of issues such as: legal issues for investors when implementing the project; legal issues for long-term tenants and between tenants and landlords, which can be investors, management and operation units or individual investors.

With 3 billion VND available, should you invest in auctioned land at the end of the year? Auctioned land has clear legal status and easy liquidity. If you have 3 billion VND in cash, should investors invest in auctioned land at the end of this year?