With a plot of land located at a good site, one can build a house and decorate it modernly for foreigners to lease to earn VND40-50 million (US$2,500-3,100) a month. Many individuals and companies get rich thanks to this service.
Considered the street for foreigners or Pho Tay in Vietnamese, Ngo Van Nam road in Ben Thanh ward, HCM City is the “general headquarters” of house leasers in HCM City.
This is a short road of around 200m with 70-80 houses and most of them are hired by foreigners. Owners have invested a huge amount of money, ranging from VND7-8 billion ($430,000-500,000), to build villas on 150 to 200sq.m for lease and earn $2,500 to $3,000/month. It is similar to houses on De Tham street.
Mr. Nguyen Van Tam said that his family owned five houses in districts 1, 3 and 5 and all of them were hired by foreigners. He earns at least $2,500 and up to $3,800/month from each house.
Not only Mr. Tam but many others have several houses being leased by foreigners. From leasing houses, some of them gradually become real estate traders and they implement big projects building houses for foreigners to lease.
Along with the urbanisation and integration trends, the house leasing market for foreigners is bustling in big cities of Vietnam. Many companies have quickly turned to build high-grade apartments and villas for foreigners to lease.
According to Mart Towsend, General Director of CPRE Vietnam Company, from now to 2010 HCM City will have 15 projects building buildings and houses for foreigners to lease. He named some projects that would be completed in the next five years, including Gemadept with 16,500sq.m, completed in 2009, M&C Tower with 35,000sq.m, Times Square with 31,200sq.m and Financial Tower with 100,000sq.m and scheduled for completion in 2010. Those buildings are multi-functional works including trade centres, offices and apartments for lease.
The leasing price of those apartments and villas will increase from $2,500-3,000/apartment at present to $4,000 or more in the near future, Mr. Towsend forecast. He also said that the leasing price in HCM City would gradually be equal to that in Singapore.
According to experts, though many individuals offer houses for foreigners to lease, this form of business can’t satisfy actual demand, so big projects are needed.
Both local and foreign businesses are interested in this market and some projects have been put into operation already, such as The Manor, Thuan Kieu Plaza, My Vinh at the monthly charge of $2,000-3,000/apartment. Those buildings are now occupied fully.
According to Le Hoang Chau, Vice Chairman of the HCM City Real Estate Association, the need for leased houses of foreigners is still very high and this is an opportunity for real estate businesses to break the ice on the real estate market.
(Source: DDDN
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