Investor interest in Hanoi’s residential and retail property for lease has increased, a representative from the Ministry of Construction said.
A property company in Hanoi said the growing trend in leasing out properties was a solution to inflationary problems and helped investors recoup capital quickly.
Low cost apartments for lease have mushroomed in areas of Western Ha Noi such as Phu My, Nhan My, Phung Khoang, Dich Vong, Co Nhue, Dong Xa and Me Tri, catering for students and low-income earners.
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Hiep, owner of a seven-storey apartment for lease in Dich Vong, Hanoi, said he has 55 rooms each priced from VND1.4-1.7 million ($20-85) per month not including water and electricity cost.
Hiep said he had just spent about VND3 billion ($150,000) to buy an apartment building, adding that within two or three years he would retreive his capital.
Another investor said trading property was risky because of the large sums of money involved, so he has shifted to building lodging houses to rent out.
The trend was also fuelled by the growing supply of affordable housing that a lot of low income earners can only afford to rent not buy.
Demand for retail and office space for lease was also growing again in Hanoi. Colliers International Viet Nam said Cho Mo trade centre will soon have about 22,000 square metres of retail space and 46,657 square metres of office space for lease.
Tai Tam Co will launch an eight-storey office building of 2,600 square metres for lease with the price of $25 per square metre.
Other coming projects include Golden Palace in My Dinh, Golden Palace in Ha Dong, and AZ Thang Long./.
