HCM City rental returns down as investors dominate purchases
More high-end apartments for rent have reduced returns on investment in Ho Chi Minh City, real estate professionals say.
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Investors buy most of of high-end apartments in Ho Chi Minh City. CBRE Vietnam said. Photo by Shutterstock/Efired
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About 60%-70% of the high-end segment are being bought by investors who look to rent them, she added.
Rental returns have decreased as a result, Dung said, adding that the rate in Ho Chi Minh City’s District 2, often the highest earners in the city, has fallen from 7.5% last year to 6.5%-6.7% now.
The same is happening at Binh Thanh District, where they have dropped from 6.8% last year to 5.5% now.
A CBRE report notes that real estate purchases for occupation have decreased this year. Instead, investors account for 61% of buyers in the high-end segment, higher than last year’s 50%.
The number of occupiers, meanwhile, was just 26%, against last year’s 35%.
The CBRE findings have been confirmed by another report by real estate market research firm Savills Vietnam. It said that from 2013-2017, over 70% of high-end residence buyers in Hanoi were investors. The figure is 65% in Ho Chi Minh City.
