The apartments with area from 45-60m2 (with furniture) can be rented for 20-30 million VND / month is considered a relatively high rent of apartments – offices (officetel) in some areas. bustling as Phu My Hung (District 7), Thao Dien (District 2) …
Bloom to buy Officetel apartment for rent
This is considered the reason why this type of “hybrid” apartment has received the attention of real estate investors. However, there is a fact that not all areas officetel also receive the attention of investors and good rental prices. These must be areas where there are customers available; Convenient connection with the busy central business area with neighboring utilities for a long time, synchronous infrastructure.
Some outstanding areas in terms of rental rates and good tenants include Phu My Hung (District 7), Thao Dien, An Phu (District 2), District 10 … These are the areas of the Recently, strongly developing officetel products and almost all projects offered for sale on the market have high absorption rate.
In some areas where the number of tenants available, the monthly rental price will be high, the payback when investing in this type is considered to be fast and attractive to investors.
A research by CBRE Vietnam shows that rental potential is now an increasingly important factor in investment decisions to buy apartments of people. In particular, buying houses for rent has become a popular trend today. The development of investors by officetel also has a reason to grasp this trend, leading to the increasing demand of real estate investors in the market.
According to experts, although not lucrative, apartments-offices bring stable and steady income, so many investors choose to buy for rent. In some areas where the number of tenants is available, the monthly rental price will be high, the payback when investing in this type is considered to be fast and attractive to investors.
According to the survey, the average profitability level when investing in this type is about 8-12% / year on the total value of apartment investment (depending on the project, location). Compared to channels such as securities, gold or savings, the returns from officetel rental investments are somewhat more stable and sustainable. Not to mention the price increase factor of the apartment.
The rental price survey at an officetel project offering the market at Nguyen Luong Bang Street, District 7 (adjacent to Phu My Hung) shows that, with the initial investment price of VND 1.9 billion / unit, while the owner Apartments can collect from 12-30 million VND / month / apartment equivalent to an area of 33-58m2. Specifically, with an area of 33m2, investors rented a price of 12 million VND / month; 43m2 apartment (with furniture) rental price reached VND 20 million / month; Apartment area 58m2 (interior) for rent for 30 million / month.
Therefore, in 1 year, with the rent of 30 million VND / month, investors will collect 360 million VND from leasing, about 5 years investors can pay back. Looking further, investors have additional opportunity costs because the value and rent of apartments increase over time.
As noted, this is an investment channel suitable for investors who want to make profit and preserve their asset value in the long term. Different from normal apartments, the type of officetel for investors is those with idle money and well-off income. With a capital of 2-3 billion VND in hand, investors can invest in offiectel apartments to lease and expect good profitability in the context of limited traditional office supply while the demand for office leasing Work still increased strongly in the market.
Demand for office search exploded in small and medium enterprises
In fact, the advantages are belonging to the officetel model when the traditional office buildings of small and medium enterprises increasingly difficult to access due to the supply shortage and high prices.
Statistics of Echelon magazine (Singapore), a large online magazine about startups in Southeast Asia, Vietnam currently has about 3,000 innovative startups (startup). The impact and speed of startup development creates a great demand for office space and warehousing. Therefore, a clear trend is that newly established businesses often seek small, sufficient office space for basic organizational activities and meet individual needs.
Officetel apartments are considered as one of the options many young businesses choose because of their flexible design and the ability to use both working and living functions; Not to mention affordable cost is also a factor that makes this type attractive to tenants.
The area of 58m2 (with furniture) can be rented for 30 million VND / month; In about 5 years, investors can pay back, not to mention opportunity cost because the value and rent of apartments increase over time.
Obviously, compared to a single rental house, a townhouse or a traditional office, the advantage of an apartment – an office is a tenant will enjoy the benefits of the project designed by the investor located in Areas with gadgets that have formed earlier. This is also an element of increasing competitive advantage in the rental market because the model itself has optimized benefits for tenants.
Not to mention, experienced real estate investors often seek to lease officetel in areas with potential customers. This is also a note for investors, because the explosion of businesses and small businesses is potential but to select business premises, business development is calculated quite carefully.
Investors can not have customers or lease offiectel at a good price when the area is absent of long-term utilities and the connection of infrastructure with the city center is limited. Find out that, over the past time, the number of investors seeking office apartments for rent often goes to the South or East Saigon area because of the outstanding advantages of tenants in these areas. Since then, vacancy rate of apartments for rent is also higher than other areas.
For example, in Phu My Hung area, District 7 (in the South Saigon area) most officetels have an impressive vacancy rate, especially in some new projects, which have been completed and ready to welcome guests. buy – hire, investors search strong. By this area the past time is the place for foreign businessmen and professionals; small-scale company owners; companies open representative offices … choose a workplace, combine living with affordable costs, while enjoying the entire community facilities of this urban area. Experienced investors have seen the advantage of available customers, so they have been looking for projects with prices of 1.8-2.5 billion dong / unit to invest in leasing.
According to experts, investment in “hybrid” apartment appealing to real estate investors by multi-functions, meeting the diverse and practical needs of the market today, stable and long-term profits, however Investors also need to pay special attention to the position of the project, the reputation of the investor, the transport infrastructure to the areas to limit the risk of the number of tenants. Because this is a real estate model depends largely on the needs of tenants, whether or not the investors’ income is guaranteed also comes from this factor.
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