Vietnam » Rental Market

Vietnam’s Rental market is moving upwards because of various property laws introduced by the government. Another factor which has boosted the rental market is the government’s efforts towards augmenting the tourism in the country. An average of 2 million tourists visited the country some 6 years ago. Tourism increased by 63% from 2002-2006 and for the year 2008, government set the target to attract 5 million visitors in the country. The reforms in the property laws for foreigners and increase in the tourism together has opened new vistas for the Rental Market in Vietnam.
 
Legally foreigners are not allowed to invest in buy-to-let market. But there are certain loopholes and schemes, through which foreigners can get the right to the virtual ownership of property. Recently, one of the leading estate agent company is Vietnam has introduced a scheme where the foreigners can hold a 50 years lease for the given property and land. The buyer gets the right to own the apartment for the next 50 years, and the lease could be renewed after the expiry of the term. This contract, gives the buyer many rights of ownership including the right to sub-let the given property.

New land laws which were revised in 2003 encompass all laws regarding the land use. It also issues regulations regarding the land lord and tenant relations, especially for the foreign tenant. Renting in Vietnam could be a serious business, the rents are paid well in advance, interests are applicable on late payments and a landlord can evict a tenant only on a three days notice if the rent is not paid. A new culture of paying security deposits is taking its roots in Vietnam for renting a property.

The rental market of Vietnam is varied and diverse, the rental prices differs in different cities. According to the rental trends, In Hanoi, a 170-sq. m apartment is expected to generate rental income of 7% of the actual value of the property. A same sized apartment in Ho Chi Minh City is expected to generate higher income percentage of 9% of the actual price of property.

According to the regional stats the rental prices in Vietnam are lower than Japan, Singapore, Hong Kong, India and South Korea, while they are higher than Philippines, Thailand, China, Indonesia and Cambodia.