According to VnExpress’s survey, the shophouse product line (commercial townhouses and ground floor apartments of apartment blocks) is becoming a hot investment channel in Saigon in the past few years.
According to real estate experts, in the past 3 years, revenue from shophouse rental in Ho Chi Minh City can be exploited at about 8-12% per year.
However, in reality, not every shophouse brings investors the expected income.
There are many shophouses that have become `bombs` from a rental investment perspective because the profit rate is too low.
Or in the case of ground floor apartments of apartment blocks on Pham Huu Lau Street, District 7, the selling price on the secondary market is 2.2 billion VND but can only be rented for 10 million VND per month, the return rate is from
A shophouse area is considered to have high profitability from rental.
Although there are many shophouses operating for rent below expectations, the race to hunt for this product line is still heating up day by day.
In addition, many apartment projects do not sell shophouses because the investors keep them for rent to optimize profits or if they do sell, this product line has been pre-ordered by partners or V.I.P customers.
General Director of Dai Phuc Land Nguyen Thanh Huong said that shophouses have been creating a fever because they possess many outstanding features compared to other real estate investment channels.
In terms of quantity, shophouse apartments are usually very small in number, accounting for 2-3% of medium-sized apartment projects and 5% of large urban areas.
In terms of multi-functional characteristics, this is a type of real estate that integrates business, corporate office leasing and of course is also convenient for residential use.
Ms. Huong explained that in some shophouse cases, the profitability from rental is worse than bank interest rates, only reaching 1.5 – 2% or at a normal average level of 3 – 4%, far from the threshold.
In these cases, investors will have to wait a while longer for a dense residential community to form before they can gradually increase rents and achieve higher profitability.
The value of a shophuse, according to CEO Dai Phuc Land, still depends on a few variables.
Therefore, Ms. Huong recommends that before choosing a place to deposit gold, shophouse investors should carefully consider the brand and reputation of the investor.