HO CHI MINH City, VIETNAM: The serviced apartments segment remains untouched by the property market's woes, with demand for rental apartments in major cities high despite the economic recession, Vietnam News Agency (VNA) reported.
A representative of Ascott International Management Vietnam said his company managed more than 800 luxury apartments in Hanoi and HCM City and most of them were occupied.
They were popular among foreigners who had been living and working in Vietnam for three to five years, he said.
Though the Government has allowed foreigners to buy houses with effect from 1 Jan, many of them are disinclined to do so, according to him.
They were used to living in places with good infrastructure and amenities, he explained, while most new houses came up in localities without those factors.
Those situated in developed areas were too expensive, he added.
Do Quan, vice chairman of the TSQ Vietnam Company, also said foreigners preferred to rent rather than buy apartments.
Few had a real need as well as the financial means to buy a house in Vietnam, he added.
Lam Van Chuc, chairman of the Phuc Duc property company, said most foreigners were not ready to pay their own cash to buy a house unlike Vietnamese.
Besides, they would only take out mortgages for houses if the interest rates were extremely low, he added.
Property consultant CBRE Vietnam said with the global economy at a low ebb, foreigners in Hanoi and HCM City would be happy to rent an apartment at 1,000-1,500 USD a month rather than sink US$200,000 into buying it. (Bernama
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