Advice
Three new trends of property investment in 2015
16/07/2015 16:48 | Source: Kinh doanh & Phap luat
Along with the recovery of market, property investment also rebounds with new trends. Here are three new trends of property investment that become more and more popular in 2015.

Buy-to-let apartment

One of the most popular channels in real estate investment in Vietnam is buying apartments to rent them out for profit. Currently, many buyers seek for apartments for investing instead of residing in. The target tenants of such investors are foreigners because of high yield. 


Recovery of property market is a good opportunity for investors

According to CBRE’s survey on profit margin of projects for rent in areas with concentration of foreigners such as The Vista, Sunrise City and Xi Riverview, these projects can bring profit margin that is equal to or better than one from bank deposits. For three years, apartment projects in District 2 maintain margins of over 8% per year.

Meanwhile, rental apartment market in Hanoi is not as large and profitable as HCMC. The best apartment projects in the capital can bring profit margin of 6-7% per year, while the majority is within the range of 4-5%. The highlights of Hanoi market include Richland Southern, The Manor, Indochina Plaza Hanoi with rent for a 2-bedroom apartment ranges from $1,000-1,500 per month.

Resort property investment

Currently, second home is an attractive trend of property investment. Accordingly, investors can buy apartments and villas in the resort to reside with family and friends in holidays. In the remaining time of year, the owners themselves rent these properties out to visitors or cooperate with hotel management firms for shared profit.  


Resort property segment has great prospects in the near future

Rising income facilitates people to enjoy a better life. It encourages the Vietnamese to travel and buy second home. However, prices of these types of properties are quite high, specifically VND3-5 billion/apartment and VND10 billion/villa.

Resort property can bring average profit margin of 4-5%. Notably, some leading property firms like Vingroup have strongly committed to offering a yield of up to 8% per year during the first ten years. It was the highest-income committed in resort real estate.

With the increasing GDP growth and urbanization, in the remaining half of the decade, the number of international and domestic tourists is expected to continuously rise.  Besides increasing arrivals, domestic tourists also spend far more aggressively than they did in previous years. Moreover, new regulations in amended Real Estate Business Law will positively affect resort real estate segment in the near future.

Short-term speculation

The recovery of property market leads to the return of investors. Some apartment projects with premium location in Hanoi are targets of short-term speculators. According to many experts, this year, the best investment channel among financial assets is real estate. With the volatility of macroeconomic in recent years, property market is the top concern of financial investors. 

Experts say, in developing markets, speculation is indispensable trend but it should be controlled at an appropriate rate of about 30%. Exceeding this rate, short-term speculation can cause instability and risks in the market.