In the prosperity of the real estate market, apartments are a bright spot due to strong growth in transactions, selling prices and rental prices. According to reports from market research units, apartments in Hanoi have continuously established new price levels in recent years.
As of the first quarter of 2024, new apartment prices have reached an average of 59 million VND/m2, increasing for 21 consecutive quarters, according to Savills. Selling prices in the secondary market of Hanoi apartments in the first quarter recorded the highest annual price increase ever, up 17% over the same period last year and reaching an average of more than 36 million VND/m2.
While in the past, customers choosing apartments often focused on real-life or investment purposes, now many investors have chosen to invest in apartments for rent. This provides a source of monthly passive income and the expectation of capital gains appreciation over time. Cash flow real estate, also known as Cash-Home, has become the choice of a large number of investors.
According to the Vietnam Real Estate Brokers Association, the occupancy rate of apartments for rent in Hanoi is always high at over 80-90%. High and stable profit margin with an average of 13%/year (including rental profit and price increase over time) helps investors have a sustainable and constantly increasing cash flow each year.
According to data from Batdongsan.com, in the first quarter of 2024, the profit margin for apartment rentals in Hanoi ranges from 4.1% – 4.9%, while in Ho Chi Minh City it is 3.9% – 4.5 %.
At a recent real estate seminar, Ms. Tran Thi Cam Tu – General Director of EximRS Real Estate Joint Stock Company said that, in any period, sheltering cash flow in real estate is an important factor. ways for customers and investors to renovate properties.
In fact, in big cities, properties with favorable locations always achieve very high occupancy rates. For today’s young people, they are not heavy on the mindset of ownership but pay more attention to the usability of the house. Therefore, they often choose to buy or rent good quality apartments in locations near the center, with full amenities and services, convenient for daily activities.
Besides, the “taste” of buyers has also changed a lot, instead of buying a house to live in, to accumulate assets…, many people have switched to buying to rent, in order to create a stable monthly cash flow. .
“According to a survey when we presented a customer evaluation table, more than 60% of buyers said they had a need to rent after receiving the house. In fact, many investors are also focusing on developing apartments. Cash-home households, a type of housing that creates cash flow to meet the increasing demand of the market,” Ms. Tu commented.
Sharing the same opinion, Mr. Pham Thanh Hung, Vice Chairman of the Board of Directors of CenGroup, said that apartment real estate is generating a very good cash flow.
According to him, if you spend about 15-20 billion VND to buy an apartment, like a project on Le Van Luong Street that is selling for 100 million VND/m2; Can be rented for 30-40 million VND per month.
Mr. Hung said that with falling interest rates, investing and exploiting real estate has created a positive cash flow, meaning real estate rental income can offset bank loan interest.
“In reality today, many people are willing to buy apartments to rent out, then use the rental money to rent another villa in the same area to live in,” Mr. Hung said.
Mr. Le Van Dung, Chairman of the Board of Directors of Thang Long Vietnam Housing and Urban Development Group Joint Stock Company, said that in investment, the Cash-Home product line, if developed, is not only in big cities. but other areas are also very interesting products. Because with this type, when renting, investors can have a stable monthly cash flow to serve their other business activities while waiting for real estate prices to increase.
The need for real estate investment is always there. To access products that can exploit added value and rental cash flow, it is necessary to consider factors such as: complete legality; location and resident amenities; Asset management and ability to bring in cash flow. Investors need to pay special attention to the legality of the project.
