The Gentrification of Vietnam?

OceanBeach92107 wrote:

Ho Chi Minh City running out of affordable housing (for PURCHASE) while there is a glut of luxury units:

tuoitrenews.vn/news/business/20220314/ho-chi-minh-city-running-out-of-affordable-apartments

But from the most recent reports I've seen, rental rates are still depressed from pre-covid rates, correct?

IN HCMC........

Not round here in Tan Phu Celadon City that's for sure I have just renewed my lease at the pre covid original price & the same flats are now advertised up 10% & I dont see many empty.

My mate in D7 just had his rent increased by 20% (Koreans moving in & jacking up the price he told me) so he has moved to a smaller place 1 floor down same block but still had to pay 1,200usd for it. But many flats still empty D7 but it seems to be a Vietnamese thing where the landlords dont reduce the rents to get a tenant they prefer the place just to stay empty.

My own flat in D12 that I rent out I reduced the rent by 20% pre TET to get a tenant. Post TET the same flat & not as well presented as mine will get the full price now that things are pretty much back to what you might call normal as far as the city being fully open & I have been twice contacted by agents to see if my place is still available & offering the pre Covid rental price.

So I suppose it just depends where you are looking & how negotiable the land lord is.

Here in Vung Tau the agents are advertising at obscene prices. Some apartments are being offered at 12 million for a not-so-fancy  two-bedroom place.
My landlady is trying to get 2 million more, about 27% more than two -years ago, for the house we are vacating.

OceanBeach92107 wrote:

But from the most recent reports I've seen, rental rates are still depressed from pre-covid rates, correct?

In most markets, purchase rates reflect buyers' long term anticipation of value, while rental rates reflect current economic conditions.

THIGV wrote:

OceanBeach92107 wrote:

But from the most recent reports I've seen, rental rates are still depressed from pre-covid rates, correct?

In most markets, purchase rates reflect buyers' long term anticipation of value, while rental rates reflect current economic conditions.

There you go again...

OceanBeach92107 wrote:

THIGV wrote:

OceanBeach92107 wrote:

But from the most recent reports I've seen, rental rates are still depressed from pre-covid rates, correct?

In most markets, purchase rates reflect buyers' long term anticipation of value, while rental rates reflect current economic conditions.

There you go again...

I am suggesting that what you say makes sense.   Rentals should still  be down until the economy picks up (including tourism) even if speculation is driving up purchase prices.  Why do you object?  I am not fond of gentrification either but it should be fairly easy to understand for anyone who has take Econ 101.

An optimist observes the new apartment blocks going up and sees this as evidence  of buoyancy in the market. Being more of a pessimist, I note that many of those buildings are empty and see it as a speculative bubble, akin to what’s happening (e.g Evergrande)  in China.