HCMC: Serviced apartments for rent with discount

(TN&MT) - When the pandemic hit, the market slowed down, and the demand decreased suddenly, causing the number of apartments for rent in a state of waiting for tenants to rapidly increase.

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According to the market report of the second quarter of 2021 on serviced apartments for rent by Colliers Vietnam, in Ho Chi Minh City, there was no supply of new serviced apartments in the quarter and some projects are extending the completion time. due to difficulties during the Covid-19 pandemic. In the next 4 years, Ho Chi Minh City is expected to welcome more than 1,300 apartments. Mr. Jackson - General Director of Colliers Vietnam said that the increase in the supply of serviced apartments for rent in recent years comes from the increasing demand of the market - the period before the pandemic happened. The percentage of immigrants wishing to rent apartments in the Southeast region is more than 75%.

Before the pandemic, foreign workers were also very numerous, willing to rent apartments with rents higher than the market average. Meanwhile, workers from other provinces also flock to major economic centers to look for opportunities. Obviously, the rapid urbanization along with the impressive growth momentum in the past few years has made the demand of the rental apartment segment very significant, constantly increasing. "However, it is impossible not to mention the reason that there are quite a lot of people buying apartments for the purpose of renting, waiting for the price to increase over time to resell. Summarizing from recent apartment projects, there are about 30% Buyers for this purpose. When the pandemic hit, the market slowed down, and the demand decreased suddenly, causing the number of apartments in a state of waiting for tenants to rapidly increase," said Mr. Jackson. know.

According to Mr. Jackson, before the Covid-19 pandemic, the price increase of rental apartments was determined by the increasing demand year by year due to the rapid urbanization and good economic growth of Vietnam. But the current apartment rent has decreased by 20-40% compared to the time before the pandemic. For example, an apartment with an area of ​​​​75m2 in some districts relatively far from the center of Ho Chi Minh City currently has a rental price of only 9-10 million VND/month compared to 12-13 million VND/month before. This price will not recover overnight as expected of apartment owners when the Covid-19 epidemic is still unpredictable.

Forecasting the future, Colliers Vietnam believes that the negative impact of the Covid-19 pandemic causes foreign experts, engineers, and workers to return the rented room to return home and is currently unable to return. . This is the part that is willing to spend money to rent medium and high-class apartments. Next, a part of domestic workers also lost their income, lost their jobs, should return the apartment or find another place to rent with cheaper price. Covid-19 caused common difficulties in many economic sectors, making a large number of secondary apartments still unable to find buyers and apartment owners choosing temporary rental solutions. Profits from this segment are also on the decline, from 5.5% in 2019 to about 3-4% at the moment.

According to experts, Vietnam is currently affected by the fourth Covid-19 outbreak starting from the end of April 2021, which is considered the most serious outbreak since the pandemic began. This development is spreading not only in Vietnam but also in many Southeast Asian countries. The pandemic has severely affected the rental property market, including serviced apartments. The past few quarters have recorded fewer tenants and many mid- and high-end serviced apartments are having high vacancy rates. Currently, guests are mainly long-term guests, a few short-term guests due to travel restrictions.