The pandemic has brought many challenges to the residential rental real estate segment. However, entering the year 2021 when the disease situation has been well controlled in our country, this market still has a higher recovery capacity than other segments. Whether it’s the student area, the residential area or the elderly, there are significant growth.
The successful control of the epidemic through 3 phases has made Vietnam one of the safe places to attract tourists and jobs. Apartments for rent in big city centers will be small spots to help attract better tenants.
Demographic trends such as urbanization, increasing population of households. All of this shows that the need for high mobility and affordability in the sales market has fueled demand among tenants.
Assessing the investment in real estate for rent at this time, Mr. Peter Hoang, Fonder at Rentapartment Agency said that the new economic conditions caused by the Covid-19 pandemic present many challenges for the real estate segment. rental housing, but the sector is still more resilient than most other segments, whether residential, student or senior, saw significant global growth in 5 last year.
As a result, interest from global investors in these types of rental properties has increased significantly. For investors, these assets offer the opportunity to diversify over traditional real estate sectors and receive secure streams of income. Investment in this sector grew 58% between 2014 and 2019, compared with 21% for all real estate investments.
Forecasts about the market in 2021, an expert of Alpha Housing said that the new supply of rental housing in 2021 will tend to be less than that of 2020 in the context of remaining inventory, real estate credit. control. Along with that, the price trend will change depending on the segment. Grade C apartment prices are showing signs of increase. Grade A apartments are also likely to increase. In the context of limited land availability in beautiful locations, developers will aim to develop higher quality products.
As predicted by real estate experts, by 2021, interest from global investors for these types of rental properties will increase significantly. For Alpha housing investor, these assets will provide them with an opportunity to diversify the real estate sector and secure other streams of income.
The level of investment in the apartment rental sector in 2021 also tends to increase. Real estate experts have also made predictions for the apartment rental sector in 2021 will increase less than 2020. Because before that, this market is still facing inventory, many apartments rental is not available and real estate credit is controlled.
Besides, apartment rental price trend will also take place in many different segments. Grade C apartment prices are showing signs of going up. Grade A apartments are also showing signs of price increases. In the context of a limited land bank in beautiful locations, developers will also aim to create better and higher quality products.
In general, looking back at the apartment rental market in 2020 was an unsuccessful year. However, the apartment rental market in 2021 will have many different opportunities to break out. Since investors will start looking more towards Vietnam, this market will surely flourish in the coming time.