Hanoi landlords sell rental real estate to offset losses

21-Sep-2021 Intellasia | DTI News | 5:02 AM Print This Post

Many mini apartments have been put on sale in Hanoi as the rental sector has collapsed during the Covid-19 pandemic.

The real estate market has been bleak since the start of 2021. In July, interest in rental real estate dropped by 20-30%.

The landlords in Nam Tu Liem, Bac Tu Liem, Cau Giay, Thanh Xuan and Dong Da districts have lowered rent by 10-20%, some apartments with previous monthly rental fees of between VND3m (USD131) to VND3.5m now only cost between VND1.8m to VND2.5m. However, they are still struggling to find tenants.

As a result, many landlords have put their apartment buildings up for sale. Hundreds of advertisements have been posted online every day.

A nine-storey building with 20 apartments in Ha Dong District has been put on sale for VND9.9bn (USD432,800) while an eight-storey apartment building with 42 apartments in Hai Ba Trung District has been put on sale for VND20bn. Another eight-storey building in Dong Da District with 25 apartments has been put on sale for VND12bn.

However, not many people have shown interest.

A large number of landlords borrowed money to invest in rental real estate. When Covid-19 broke out, university students returned to their home provinces to study online, while migrant workers also returned home or shared rent to save money. The landlords have had to sell buildings to repay bank loans and interest.

Landlords in Hanoi and HCM City are also worried about proposed increases in VAT and personal income taxes to 10 percent and are considering leaving the market.



Category: Business, Vietnam

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