Prices continuously increase
Despite the general difficult context of the entire real estate market, apartment prices have continuously increased in recent years. Accordingly, while the real estate market is just "beginning" to find its "bottom" in the last months of 2023, the real estate segment serving real housing needs, especially the apartment type, has recovered, welcoming the wave of growth again. , even maintaining its upward momentum throughout difficult market times.
Specifically, research data from the Vietnam Association of Real Estate Brokers (VARS) shows that, in recent years, on average each year, apartment prices have grown by double digits. In 2023 alone, the apartment price index in Hanoi at the end of 2023 increased by 16 percentage points compared to the beginning of the year.
Apartment prices in the affordable and mid-range segments have continuously increased in price over the years.
Meanwhile, this index in the Ho Chi Minh City area has also entered a growth cycle again since the third quarter of 3, thanks to the gradual decline in prices in high-end and luxury projects on the secondary market. The average primary selling price of apartments nationwide is also high when new supply to the market is mostly products priced over 2023 million VND/m40, with almost no projects in the affordable apartment segment.
Apartment projects in cities are constantly setting new price levels, and rental prices for old and new apartments in residential areas are constantly increasing. Especially since mid-2022, when rental contracts during the peak of the epidemic will expire and be renewed if both parties continue to have needs. Many apartments have increased prices by up to 40% compared to the peak of the epidemic and increased by about 20% compared to mid-2022.
Information from VARS shows that apartment rental prices in Hanoi have increased relatively sharply in recent years, especially in the studio type (1-bedroom apartment) with a profit margin up to double that of other apartments. The apartment has a larger area.
Specifically, in Long Bien district, studio apartments are being rented for 7-8 million VND/month, an increase of 10-15% over the same period last year and about 30-40% compared to 2022. 2-bedroom, fully furnished apartments have a higher price, with a lower increase, about 10% over the same period, to about 10-11 million VND/month.
At the Greenbay Me Tri project (Nam Tu Liem), fully furnished studio apartments are currently for rent for about 10 million VND, 2-bedroom apartments range from 14-16 million VND, an increase of about 15% over the same period. period. Rental apartment prices in other districts also recorded similar increases.
Similarly, in Ho Chi Minh City, apartment rental prices have also begun to tend to increase slightly in recent times, especially in the inner city area, commonly ranging from 500 to 1 million VND/month. Although before that, in mid-2023, apartment rental prices in Ho Chi Minh City remained the same, even decreased slightly in some large apartments after a sharp increase in rental prices at the end of the epidemic.
For example, the rent for a one-bedroom apartment at Vinhomes Golden River in District 1 increased from 15 million VND/month to 20 million VND/month when the old contract expired. The new price was just announced by the landlord, and there were immediately tenants. Projects far from the center such as Sunrise Riverside and New Saigon (Nha Be district) also increased the price of rental apartments with a massive increase in tenant demand.
VARS forecasts that apartment prices are expected to continue their upward trend, around 10% for at least another year, when there is more supply of affordable housing.
Many young people choose to rent a house
Renting a house is chosen by many families, as high apartment prices make home ownership increasingly difficult for the majority of people. Although loan interest rates, including home loans, have decreased.
However, taking out a home loan and paying monthly debt is still a burden for many families as people are not really confident in their future job situation and income due to fluctuating economic conditions. Housing rental will continue to increase sharply, thanks to the increase in the large number of foreign experts coming to Vietnam through FDI projects.
With a stable income, the young generation can choose to buy apartments with reasonable and safe installment payment policies. (Illustration)
Especially in the context of consumer trends that have changed a lot. When the Millennial-Z generation, accounting for 47% of Vietnam's population, focuses more on lifestyle, living environment, and utility systems to improve quality of life.
They will mostly choose to live in apartments with full amenities and a better living environment - something that residential real estate at a similar price cannot have. Renting a house is also the preferred choice of this generation.
Rental demand is still on an upward trend while available supply is in short supply due to the continuous decline in housing supply, especially apartments, causing rents to increase. VARS data shows that the supply of new apartments in all segments in the first half of 2022 reached over 22.700 units, less than half compared to the same period in 2021. More than half of the apartments are being traded (purchased, sold, rented). ) on the market are apartments of previously offered projects.
The time when investing in apartments is over is a "liability"
According to VARS, the constant increase in apartment purchase, sale and rental prices in recent times has also broken the stereotype that apartment investment is a "liability".
In the past, most people thought that apartments were an unprofitable type of purchase and only resulted in losses, but choosing to invest in residential real estate with a plot of land is the optimal solution because it is easy to pay. accounts and high profitability. Nowadays, investing in apartments and then renting them out has become a popular trend in big cities as you can earn a steady cash flow from monthly rentals - higher than savings, while also enjoying benefits. from the possibility of price increases.
VARS predicts that house rental prices will continue to increase but at a slower rate. The outlook for the apartment market is becoming clearer as production and business activities are gradually recovering completely, leading to great demand for housing in large cities.
Faced with the challenge of escalating apartment rental prices, people with long-term rental needs need to make appropriate decisions. With a stable income, the young generation can choose to buy apartments with reasonable and safe installment payment policies.
Especially now, in the market, a number of large investors have begun to launch policies to help young people buy houses with installment costs equivalent to rent. With a commitment to a maximum interest rate ceiling, home buyers will avoid the "risks" related to floating interest rates.
N.Giang
