Surprising news about the locality with the highest apartment rental yield in the country, positive signals from the Ho Chi Minh City market, and the highest land prices in Vinh Phuc province… these are the latest real estate news.
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| The average rental yield for apartments in Binh Duong is currently 4.7%, significantly higher than Hanoi's 3.7% and Ho Chi Minh City's 3.6%. (Source: Crystal Bay) |
The Ho Chi Minh City market is gradually recovering.
The real estate market in Ho Chi Minh City (HCMC) has gradually recovered, from negative levels in 2023 to positive growth since the beginning of 2024. The growth rate is still slow but shows positive signs.
According to a report by the Ho Chi Minh City Department of Construction, in the first 11 months of 2024, the city built 7.8 million square meters of new housing floor space (reaching 97.5% of the 2024 target of 8 million square meters). This includes 3.83 million square meters of individual housing, approximately 3.826 million square meters of commercial housing, and 0.144 million square meters of social housing. The city has completed two social housing projects, comprising 610 units and 50,831 square meters of floor space.
Currently, the Ho Chi Minh City real estate market has gradually recovered, from negative levels in 2023 to positive growth since the beginning of 2024. The growth rate is still slow but there are positive signs. Several new projects have received investment approval, and some older projects have been restarted thanks to the removal of obstacles.
Accordingly, in the first 11 months of 2024, the city had 12 commercial housing projects approved for investment (including 1 social housing project); 2 projects granted construction permits; more than 31,000 commercial apartments under construction; 1,611 future apartments eligible for capital mobilization; and 3 completed social housing projects with 2,122 apartments.
Regarding the work of resolving difficulties for real estate projects, the Department of Construction has advised the City People's Committee to continue to take the lead and assign city departments and agencies to continue reviewing slow-moving investment projects due to obstacles arising during the process of complying with legal regulations, in order to find solutions in accordance with the law, avoiding waste of land resources, causing damage to urban aesthetics and construction safety...
Some apartment projects in Binh Duong have rental yields exceeding 7% per year.
According to Batdongsan.com.vn's Binh Duong Apartment Market Overview 2024 data, the average rental yield for apartments in Binh Duong is currently 4.7%, significantly higher than Hanoi's 3.7% and Ho Chi Minh City's 3.6%. 3.6% is also the national average rental yield for apartments in 2024.
Notably, some projects in Binh Duong have recorded apartment rental yields of 6%–7.5% per year. This can be considered a record high in Vietnam, almost double the rental yields of apartments in Hanoi and Ho Chi Minh City.
The high rental yields in Binh Duong are largely due to the fact that the high-end apartments there have moderate purchase prices while commanding high rental rates and stable occupancy. These high-quality properties attract high-end clients willing to pay higher rental prices. On average, a high-end apartment in Binh Duong (purchased for approximately 45-50 million VND/m2) can be rented for around 12 million VND per month for a 1-bedroom unit, 15-16 million VND for a 2-bedroom unit, and 18-20 million VND for a 3-bedroom unit. However, in Ho Chi Minh City or Hanoi, an apartment priced at 45-50 million VND/m2 can only be rented for around 7-12 million VND per unit, depending on the number of bedrooms.
Mr. Dinh Minh Tuan, Director of the Southern region of Batdongsan.com.vn, said: “The occupancy rate for high-end apartments in Binh Duong is about 80-90%, and some projects are almost always fully occupied. This stems from the high demand for rentals thanks to the strong development of industrial zones, which attracts a large influx of workers and experts.”
Binh Duong currently ranks among the top provinces nationwide in attracting FDI and second in immigration rate. The province has also implemented many policies to support businesses in attracting and retaining labor. With the highest per capita income in the country, Binh Duong has become an attractive destination for immigrants.”
Among the five largest rental real estate markets nationwide, excluding Hanoi and Ho Chi Minh City, Binh Duong leads in both the volume of interest and the growth rate of interest, surpassing other provinces and cities such as Da Nang, Hai Phong, and Khanh Hoa. By the third quarter of 2024, the number of searches for apartments for rent in Binh Duong had increased by 58% compared to the first quarter of 2021.
In terms of customer structure, interest in apartments in Binh Duong mainly comes from investment buyers and some residents of Ho Chi Minh City seeking a place to live, along with the demand for housing from local residents. Specifically, customers from Ho Chi Minh City account for 49%, while customers from Binh Duong and neighboring provinces account for 33%, according to the Binh Duong Apartment Market Overview 2024 data from Batdongsan.com.vn.
The high-end apartment segment in Binh Duong is considered a driving force for the province's rental yields. However, the prices of high-end apartments here are currently low, 30-200% lower than in Hanoi, Ho Chi Minh City, and other major cities, making the market easily accessible to investors while still ensuring high profit potential.
In Binh Duong, apartments priced at 45-50 million VND/m2 already meet high-end handover standards and maintain an occupancy rate of 80-90%, with monthly rental prices around 15 million VND for a 2-bedroom apartment. However, in Hanoi or Ho Chi Minh City, only apartments priced at 80-90 million VND/m2 can be rented out at the same price.
Vinh Phuc announces new land price list.
The People's Committee of Vinh Phuc province has issued a new land price list in accordance with the 2024 Land Law. Notably, 54 locations have seen price increases ranging from 5 to 8 times.
Accordingly, the revised and supplemented land price list fully covers all locations, routes, and residential areas in Vinh Phuc province in accordance with the new regulations of the 2024 Land Law.
Specifically, the newly issued land price list, spanning 318 pages, has added 715 locations and routes while removing 132 routes.
Of these, 159 positions (2.99%) experienced a 3-5 times increase in price fluctuation. 54 positions (1.02%) experienced a 5-8 times increase in price fluctuation.
The highest land prices are in Vinh Yen City, specifically in the section from Ngo Quyen Street to the intersection with Nguyen Viet Xuan Street, where land prices reach up to 52 million VND/m2.
In particular, in the Tam Dao tourist area, land prices in many locations have also increased significantly. Specifically, along the stretch from the Venus Hotel intersection, running around the central park ring road to the intersection leading to the school, the price of residential land in location 1 has reached 49 million VND/m2, while the price of commercial and service land is 18.2 million VND/m2.
The current land price list is issued based on the results of investigations and surveys conducted by localities, and includes a comparison of similar factors across locations to assess and propose land prices.
The new land price list for Vinh Phuc province is effective from January 20th and will be applied until the end of 2025.
New regulations on selling social housing after 5 years of use benefit residents by hundreds of millions of dong.
When transferring ownership of a social housing unit, 50% of the land use fee, approximately 120-200 million VND, must be paid. With the new regulations in the 2023 Housing Law, residents no longer have to pay this fee.
The General Department of Taxation (Ministry of Finance) has recently issued a document responding to the Hanoi City Tax Department regarding the collection of land use fees when transferring ownership of social housing apartments.
According to the General Department of Taxation, Point e, Clause 1, Article 89 of the 2023 Housing Law stipulates: "...After a period of 5 years from the date of full payment for the social housing, the buyer of social housing may resell this housing at market prices to those in need if a certificate has been issued; the seller is not required to pay land use fees and must pay income tax according to the provisions of tax law, except in the case of selling social housing as a detached house, in which case the seller must pay land use fees according to the Government's regulations and must pay income tax according to the provisions of tax law."
Article 42 of Decree No. 100 of 2024 stipulates that land use fees must be paid when reselling social housing after a period of 5 years.
Accordingly, in addition to the fees stipulated by regulations, the seller must pay 50% of the land use fee. The land use fee is calculated at the time of submitting a valid application for recognition of land use rights as prescribed by land law.
Furthermore, Point d, Clause 5, Article 198 of the 2023 Housing Law stipulates that, in cases where social housing sales were required to pay land use fees before the effective date of this law, and the land use fees have not been paid by the effective date of the 2023 Housing Law, the payment shall continue as prescribed.
Based on the above regulations, the General Department of Taxation stated that, in cases where buyers of social housing resell the property in accordance with the law on housing and the transfer takes place after August 1, 2024 (the effective date of the Housing Law), they are not required to pay land use fees but must pay income tax.
In the case of selling social housing that is a detached house, the seller must pay 50% of the land use fee and income tax.
For cases where the sale of social housing requires payment of land use fees according to the housing law before the effective date of this Law, but the land use fees have not yet been paid, the payment shall continue according to the provisions of the housing law before the effective date of this Law.
In Hanoi, market observations show that many social housing apartment projects have been in use for over 5 years and are eligible for transfer, such as Dai Kim Building, Rice City Linh Dam, 43 Tran Phu, 987 Tam Trinh, etc.
Surveys at numerous social housing projects show that even though the apartments have been occupied for many years, their prices have increased many times over, rivaling those of apartments in commercial projects. In some cases, the asking price reaches up to 50 million VND/m2.
Previously, when transferring ownership of a social housing unit, residents had to pay 50% of the land use fee, which amounted to approximately 120-200 million VND. With the new regulations, residents no longer have to pay this fee.
Source: https://baoquocte.vn/bat-dong-san-khong-phai-ha-noi-day-moi-la-noi-co-hieu-suat-cho-thue-chung-cu-cao-nhat-nuoc-thi-truong-tphcm-tang-truong-duong-tro-lai-301695.html
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