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Tay Ho District – The Leading Leasing Market In Hanoi

13/05/2019

Tay Ho District – The Leading Leasing Market In Hanoi

While the stock market is “buoyant” with many fluctuations, gold prices have not shown any positive signs and saving interest rates are not really attractive, is real estate investment for rent still the most attractive option for investors in Vietnam?

The latest data published by the Foreign Investment Department of the Ministry of Planning and Investment shows that in the first quarter of 2019, FDI reached a record of more than US$10 billion in value of registered investment capital over the same period within 3 last years (Q1/2016, this number reached USD 4.03 billion, Q1/2017, it reached USD 7.71 billion and in Q1/2018 it reached USD 5.8 billion). It also means that a large number of foreign experts will “land” in Vietnam, especially in the two major cities of the country namely Hanoi City and Ho Chi Minh City.

Currently, there are more than 84,000 foreign workers in the field of labor licensing (statistics of the Ministry of Labour – Invalids and Social Affairs) nationwide, of which 90% have not owned real estate yet.

According to the Housing Law, only a maximum of 30% of apartments in a project are allowed to be sold to foreigners. Foreigners are also not allowed to own real estate attached to land in Vietnam. Therefore, that foreigners tend to rent apartments is understandable.

Surveying the budget for renting apartments of foreign high-class human resources, their investment ranges from USD 1,500 to 5,000/month on average depending on rank and position.

Tay Ho – The number 1 King of high-end real estate for rent in Hanoi

According to a recent report by Savills, Vietnam leads Southeast Asia in apartment rental rates. In comparison with Singapore, this rate is 2 times higher and in Bangkok is more than 1.7 times. In Hanoi, Tay Ho District is always considered the region with the highest rate of rental apartments up to 5.7%/year.

According to the policy until 2030, vision up to 2050, the western area of Hanoi (including the districts of Nam Tu Liem, Cau Giay and Tay Ho …) will welcome a series of ministries, departments, embassies and offices of non-governmental organizations. Along with that, the government has also promoted the development of infrastructure when upgrading and expanding a series of arterial roads. Pham Van Dong Street is being expanded along with the 40m road through Ciputra connecting 2 arterial roads namely Vo Chi Cong – Pham Van Dong which has completed 90% of the items creating the connection to make the traffic area become smooth. In addition, the metropolitan railway No. 2 with a length of 11.5 km from Nam Thang Long (Ciputra) to Tran Hung Dao will help move into the Old Quarter more conveniently than ever. This is also a positive signal to attract investors to choose real estate in this area to invest in leasing.

Lotte Mall super-project in Tay Ho District will be a strong leverage to create the resilience of the regional rental market

Especially, Lotte Mall super-project – the most luxurious complex in Vietnam with investment capital of up to USD 600 million including items such as commercial center, cinema, hotel, office and aquarium, an ideal position in the complex of Ciputra Hanoi urban area and two fronts adjacent to two arterial roads Vo Chi Cong and Lac Long Quan connecting the city center with Noi Bai International Airport will be the a magnet with a strong attraction to foreigners coming and renting in this area.

Ciputra Hanoi – The busiest West Street in Tay Ho area

According to statistics, Tay Ho District currently has 1,700 households registered for foreigners to rent houses; the number of foreigners staying permanently in the area is more than 4,000 people and this number will be much larger when FDI projects are developed in the future. Of which Ciputra is known as the “West Street” of Hanoi, focusing on a large number of foreigners up to nearly 40% out of more than 7,000 residents from 82 countries worldwide – an extremely impressive number if compared with other urban areas in the Capital.

Owning a prime location at Ciputra Hanoi, TheLINK luxury apartment complex with a panoramic view of large space overlooking the green golf driving range and low population density when the apartment building is only 21 floors, 10 apartments/floor with all kinds of areas suitable for diverse needs of single or family guests. For low-rise tenants segment, Grand Gardenville Villas with only 161 isolated units adjacent to the 25ha core park with 6,000m2 internal park will be an ideal investment option. Owners can easily find long-term tenants who are foreign diplomatic guests or successful businessmen and politicians who want to rent in Tay Ho area.

Large green space, professional security and international-standard service facilities at Ciputra always meet the most stringent requirements of foreign tenants.

Willing to pay a “huge” amount of up to $5,000 monthly for luxury penhouse or villas at Ciputra, this high-end tenant segment, of course, has extremely strict requirements on green living space, security, utilities, services and convenience when traveling.

In addition to the international-standard security service of a closed urban area – a factor that brings a sense of security to foreign residents who always upholds personal privacy, Ciputra possesses a large green environment landscape up to 77 ha for greenery and water surface with diversified utility system for residents such as: high-end Ciputra Club Complex of sport, cuisine and entertainment, 7km Ecopath walkway, outdoor playground, system of mini mart, luxury restaurant…

The urban area also gathers a system of international-standard high quality education schools. Ciputra Hanoi campus currently has 4 prestigious schools meeting international standards such as: United Nations International School-UNIS, Hanoi Academy International Bilingual School, Singapore International School and Sunshine House Kindergarten and K.I.K, a special attraction for foreign experts, counselors, and entrepreneurs when living with their families, which will ensure their children an international-standard learning and training environment.

TheLINK345 Ciputra high-end apartment complex has started handover since Q4/2018

According to the latest information from the Developer, TheLINK345 Apartment Complex has started handing over from Quarter 4/2018 with the policy of “STAY NOW – PAY LATER”. Accordingly, from now until the end of May 31, 2019, buyers only paying 50% of the apartment value can receive the house immediately, the remaining of 45% will PAY GRADUALLY WITHOUT INTEREST RATE for 24 months. For low-rise products, the Ciputra is opening a subscription to the end of May 31, 2019 for the last premium units available at the Grand Gardenville villa subdivision adjacent to the 25 ha core park.