| Vietnam Rental Market |
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There is strong potential in the Vietnam rental market due to the general growth of tourists and expatriates moving to Vietnam for work purposes. Hanoi and Ho Chi Minh City, along with key holiday destinations , are the areas of the Vietnam rental market with the most potential. Following are points related to the Vietnam rental market and services offered by Healy Consultants: | ||||
1.
| According to the Global Property Guide's research, the rental yields in Vietnam are around 9-10% (based on resale apartments and houses). The rents gained in central areas of Ho Chi Minh City are slightly higher than in Hanoi.
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2.
| The Global Property Guide's review of the tenancy laws in Vietnam shows it is strongly in favour of the land-lord. Three aspects to support this are: i) rents are paid well in advance, ii) interest can be charged for late payments and iii) only three days is required to evict a tenant who is behind on rental payment. Other aspects of renting in Vietnam include:
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i) Rent is freely negotiated by both parties but is usually fixed for the duration of the tenancy, typically 1-2 years.
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ii) While security deposits may not be common, the initial rent payment is usually at least three months.
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3.
| Healy Consultants assists investors to manage the process of finding tenants for newly acquired residential and commercial property in Vietnam. This process can include i) appointing a reliable agent, ii) determining the optimal rental for the property, iii) interviewing potential tenants and supervising negotiation of contracts iv) arranging necessary requirements for collection of rental payments v) efficient resolution of tenant issues.
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4.
| An improving legal framework and greater transparency with regards to the formal processes, with a more mature foreign investment environment will continue to assist the growth of Vietnamese real estate. | |||
5.
| Appointing and supervising a local lawyer is one service provided by Healy Consultants to help avoid any disputes during transactions Vietnam property. Having an experienced lawyer in Vietnam is beneficial as legislation related to foreign investment in property is changing and this can have an impact on the Vietnam rental market. |
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6.
| Healy Consultants provides investors with professional tax and accounting advice specific to the Vietnam rental market. In Vietnam, different elements of income are taxed individually at the applicable tax rate, after allowable deductions. |
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7.
| A combination of a young population with growing incomes and a current shortage in supply of condominiums means there is strong potential for high yields from the Vietnam rental market. The expansion of offerings to tourists in the areas of golf and spa, along with the beach resorts, is another positive aspect in the potential for demand of rental premises. | |||
8.
| According to Cushman & Wakefield, prime office rents in Vietnam are not in line with the rest of Asia. This is due to a combination of elements including i) the country's economic progress, ii) Vietnam's entry to the World Trade Organization, iii) increased foreign investment and iv) a significant lack of premium office space. | |||
Contact Us | ||||
For more information on the rental market in Vietnam, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com | ||||
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