Low prices (ranging from 500 million to 1 billion VND) and being located in the inner city are the advantages that make mini apartments an attractive product in the real estate market when housing prices are currently high.
In Hanoi and Ho Chi Minh City, apartments priced under VND2 billion are increasingly scarce. Moreover, low-cost apartments are often located far from the city center, making it very inconvenient to travel. Therefore, many households with limited finances, instead of having to borrow money from banks and looking for affordable apartment projects in suburban areas, have now turned to buying mini apartments.
Ms. Nguyen Thuy An (born in 1995, Bac Ninh) said that she and her husband have been working in Hanoi for nearly 10 years and have saved 800 million VND. They plan to borrow 70% from the bank and buy an apartment worth about 2 billion VND.
Mini apartments have the advantage of being cheap and located in the inner city. (Photo: Truong Cong Hieu).
However, the apartments with prices of around 2 billion VND that the broker took them to see were all quite far from the center, such as in Thuong Tin or Thach That districts. She and her husband work in Hai Ba Trung district, if they chose to buy a house in these areas, they would have to commute nearly 20 km every day. This was impossible for her.
After researching, Ms. An decided to buy a mini apartment in Hoang Van Thu ward (Hoang Mai district). This project is a building with two alleys, near the following routes: Minh Khai, Hoang Mai. The apartment building is built on an area of 300m2, with a scale of 7 floors, each floor has 5 apartments with a system of one staircase and one elevator.
The apartment that Ms. An bought has an area of 52 square meters and costs about 1.1 billion VND. " I bought it to live in, not to do business or need to mortgage the bank, so even though I know it is difficult to get a pink book for a mini apartment, with the money my husband and I have, if we want to have a place to live, we can only buy a mini apartment," she said.
Like Ms. An, many young couples recently also choose to buy mini apartments instead of buying residential land or affordable apartments. Mini apartments have cheap prices, are located in the inner city, convenient for commuting and have full amenities. Recently, real estate prices have skyrocketed, reaching a peak, making the dream of settling down for many families become distant. Therefore, mini apartments have become a lifesaver for many people at this time.
Investment channel for rent attracts a lot of money
According to a survey in Hanoi, in Cau Giay district, mini apartments with an area of 25 - 30m2 fully furnished are currently rented for 4.5 - 5 million VND/month. Apartments with an area of 50 - 60m2 are rented for 7 - 8 million VND/month.
In other districts such as Dong Da, Hai Ba Trung... apartments of 25 - 30 m2 rent from 3.5 - 4 million VND/month, apartments of 50 - 60 m2 rent from 6 - 7 million VND/month.
The price of mini apartments currently ranges from only 600 million VND to 1 billion VND, while the rental profit is quite stable, so many people with a financial capacity of about 1 billion VND also choose mini apartments for rent as an investment.
“ Investing in a high-end apartment, investors initially have to spend a large amount of money. For example, buying a high-end apartment for 3.5 billion VND or more, spending an additional 200-300 million VND on interior design, investors will rent it out for about 20 million VND/month. Meanwhile, with only about 1 billion VND invested in a mini apartment, you can rent it out for 8 million VND/month ,” said Mr. Le Van Tam, a broker specializing in selling mini apartments.
According to real estate experts, currently, the majority of young workers have an income of about 10 million VND. They do not have enough money to buy a house or rent an apartment to live in, but they do not want to live in dilapidated boarding houses. This is the reason why the demand for mini apartments has increased rapidly recently.
In addition, mini apartments are often located in the central area, although the price is 1-2 million higher than the rental house outside the center, but the tenant does not have to spend time and travel expenses. Therefore, mini apartments always have a high occupancy rate of 90-100%.
According to Mr. Giang Anh Tuan - Director of Tuan Anh Real Estate Company, mini apartments are popular for rent for two reasons: First, this is real estate attached to land, the price increases sustainably, suitable for investment.
Second, mini apartments create steady liquidity from cash flow - a big advantage of this type. With mini apartment buildings in the central area, the room occupancy rate is very high. Many investors with idle money like to buy a few apartments to rent out as a reserve source.
Chau Anh
Source
Comment (0)