Ho Chi Minh City landlords are forced to lower rental costs during the second wave of Covid-19

News

September 02, 2020

  • In District 1, a lady name's Minh has revealed to this point lowered the rents for her 2 flats by 30% to $900 a month every. They accustomed be rented by foreigners for $1,300, however, she had no choice but drop the price down to $1,100 in April this year when a nationwide social distancing command began.


    In July, once foreigners couldn't return to Vietnam thanks to the pandemic, she had to lease it to locals who pay even less. "The longer the pandemic goes on, a lot of harm it'll cause to medium enterprises as a result of I even have bank debts to pay."



    Saigon has witnessed a significant reduction in real estate demand 


    Another landlord, Mr Trieu who lives in District 7, cut rents for his 3 properties by 15% since the first wave, following by another 10% this month. He indicated: "I myself have to repay banks 25 million VND ($1,080) a month."


    Mr Tai_a broker, aforesaid rents in District 4 have born by 30-35 % since the start of the year, explaining that a lot of folks rental properties there have been tourists or businessmen with short wants who have left. The renting rate would continually fall down as long as foreigners are prohibited from getting into Vietnam, and locals limit outlay because of the pandemic, he affirmed.


    Industry insiders expected true to continue through the year. Tran Hoai Linh_business executive of real-estate firm VNO cluster, aforesaid the second wave affects real estate in Covid-19 has resulted in less demand and falling rents.


    According to him, almost rental segments have seen a drop of 20-35 % since last year, which is the largest declines in a very decade.



    Although the landlord includes various attractive offers, the renting flow continues to drop


    Landlords with flats cost accounting 15 million VND ($647) per month or higher would be forced to spend more efforts to find tenants, and people priced upward of $1,000 would haven't any takers since foreigners couldn't enter Vietnam, he said. Moreover, tenants are doubtless to give up on a pricy flat for a less expensive one to cut back prices throughout the pandemic.


    Vo Huynh Tuan Kiet_associate director of a residential project promoting at assets firm CBRE, forecast rents would still fall till the tip of the year since there's conjointly associate degree abundance of provisions.


    Vietnam recorded the primary domestic Covid-19 case on July twenty-five when a 99-day streak while not community transmission. Since then the country has according to 389 domestic cases in fourteen cities and provinces.


    The local real estate in Vietnam has experienced 847 cases as of weekday morning, 433 of them active.




    Source: VNExpress Internation. [online]. Available at: e.express.net https://e.vnexpress.net/news/business/industries/hcmc-rents-fall-further-as-covid-19-resurfaces-4144662.html


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