Demand on renting luxury condominiums increasing
According to Hanoi real estate market report in Q3 2013 of CBRE Vietnam, the West of Hanoi has witnessed a considerably rising demand on renting high-end condominiums at USD 1,000-2,000/unit/month. The motivation of this trend is businessmen and specialists from Japan and Korea.
Luxury condominiums – Modest quantity but big profit
In the previous report by CBRE, the supply of high-end condominiums in Hanoi is one-third of the supply of medium-end one (about 22,000 units). However, it is highly profitable for investors who understand and fulfill this segment’s demands because those customers have high living condition and affordability.
Christopher Piro – Director of Vietnam Sotheby’s International Realty revealed “In spite of facing certain obstacles, the high-end housing market has not recently been frozen as people think. Apart from those buying houses for living, there exist a considerable number of renters or people buying houses to rent to foreigners. Indochina Plaza Hanoi (IPH) is a typical example with many units rented by Japanese.
Japanese tenants – Tough but sustainable
According to the statistics from the Ministry of Planning and Investment, Japan is the leading partner of FDI investor in Vietnam. Therefore, more and more Japanese businessmen and specialists visit Vietnam, creating a highly profitable opportunity for luxury condominium owners, especially in IPH with its prime location.
Situated at Hanoi’s Western gateway, IPH offers the realistic location on the main intersections to city center and Noi Bai international airport. However, from the viewpoints of real estate specialists, what makes Japanese tenants occupy 55% of total tenants at IPH is the stability after 1.5 year of operation.
In fact, Japanese tenants appreciate security, safe environment, beautiful landscape and high-end facility system. Thus, in last October and November, 60% of condominium buyers obtained revenues from their condominiums immediately thanks to contracts with Japanese tenants. With the international standard interiors, IPH condominiums bring their owners the monthly renting rate of USD 1,500 for 93-sqm 2-bedroom unit and 1,800 for 116-sqm 3-bedroom unit.
Moreover, IPH residence is managed by CBRE with 24/24 security while residents can enjoy a 4-floor shopping center, gym, swimming pool, clubhouse and kindergarten.