Residential properties for rent for foreigners in Hanoi: Increasing pressure on lowering price
In the past three years, those who are working as agent service in real estate area for rent in Hanoi for foreigner have experienced many hardships owing to excess of supply over demand as well as stricter and stricter demand of clients. In Quang An ward (Tay Ho district) alone, which is called the biggest “Western Village” in Hanoi, there is an abundance of houses publising house for rent plate.
According to Mr. Nguyen Van Binh, a experienced leasing consultant of a real estate company in To Ngoc Van, almost landlords with properties to rent have to lower price because the number of clients reduces while the supply still increases annually. The rate of reduction ranges between 10% and 20% in comparison with the same period in 2015.
Price of a one bedroom apartment ranges between 500 and 700 USD per month; price of two bedroom apartment ranges between 800 and 1500 USD per month basing on location and facilities. Clients in Quang An almost are diplomats, English teachers, officers of foreign representative offices and workers in industrial zones.
According to Mr. Dang Van Hoi, Vice Chairman of Quang An Ward people’s committee, although there are many difficulties in the rental market, the number of house owners with house for rent for foreigners has still risen in the past 3 years, totally 800 landlords altogether.
Only tax for budget of this service of Quang An ward is 13.2 billion VND in 2012 and 12.8 (expectation) in 2015. According to him, even if lots of difficulties in the market, the reduction of this kind of service is not very remarkable because Quang An ward, Tay Ho district lies between Song Hong (Red River) and Ho Tay (West Lake), close to many famous historical and cultural monuments.
Many households which having house for rent reveal that they must be flexible with dificulties of the market not only reduce price but also provide more free facilities and amenities for clients such as cleaning service, security guard, car parking, ect… to keep their clients.
“Insteading of signing in a contract of more than a year, many clients just commit for 3 to 6 months. Many foreign visitors narrow leasing area or require joining with a shared house”, said an owner of a household in Quang An.
According to Mr. Nguyen Van Binh, leasing consultant of this company, there are 3 main resources in the aspect of house for rent for foreigner including houses built by households with a few or tens of flats; flats belonging to project such as Vinhomes Long Bien, Ciputra, Trung Hoa – Nhan Chinh, My Dinh – Song Da and some enterprises invest in buiding flats just for foreigner to let in a large scale. Starting from demand of clients, Mr. Binh revealed that demand for service must be more and more consideration.