The real estate market in the Northwest of Ho Chi Minh City is attracting the attention of investors as many large-scale infrastructure projects and urban areas are being implemented. In that context, Vinhomes Hoc Mon (Vinhomes SaiGon Park) is being considered by many investors from the perspective of exploiting for rent instead of just expecting to increase asset prices.
According to experts, the effectiveness of a rental investment depends on the ability to create stable cash flow during the holding period. Besides product quality or utility systems, a more important factor is the scale and sustainability of actual rental demand in the area.
Planned on an area of about 880 hectares in Xuan Thoi Son commune (Hoc Mon), Vinhomes SaiGon Park has a total investment of about 59,000 billion VND. The project aims to have a scale of about 135,000 residents and integrate an international university urban area with about 60,000 students. In addition, this area is also located near many large industrial parks of Ho Chi Minh City and Long An, creating additional demand for housing and services.
Three groups of potential tenants
One of the highly appreciated factors at Vinhomes Hoc Mon is the ability to form many groups of tenants with different needs.
The first group is students in the international university urban area with a scale of about 150 hectares. When the school system comes into operation, the number of students can create demand for renting small apartments, townhouses or types of accommodation suitable for young people. This is considered a group of customers with stable needs for each school year and is continuously supplemented.
The second group is a team of experts, engineers and high-quality workers working in neighboring industrial parks such as Tan Phu Trung, Xuyen A, Hai Son or Nhi Xuan. According to market assessment, this group of customers often prioritize choosing accommodation near their workplace, with a synchronous living environment and meeting standards of amenities and security.
In addition, when urban areas form a large residential community, the demand for essential services such as food, shopping, education, health care or entertainment will also increase. This opens up opportunities for exploitation for rent for commercial premises serving in-area residents.
Each type of product suits an exploitation strategy
According to analysts, not all products in a project bring the same rental efficiency. Choosing a type that suits each customer group will significantly affect the ability to generate cash flow.
For townhouses, the main tenants may be experts or households who want to live in a synchronous urban area. Long-term leases often help owners maintain a stable source of income, while still having the opportunity to benefit from increased real estate values as the area develops.
Meanwhile, shophouses are assessed as having business exploitation potential as the population density increases. The value of this type depends heavily on the location, commercial axis planning as well as the occupancy rate of the urban area. If the residential community develops as planned, the demand for retail space and services is expected to increase accordingly.
For villas, the group of tenants is usually experts or senior managers who need spacious and private living space. However, this segment also requires a more professional exploitation strategy because the number of target customers is not as large as other types.
Factors to consider
Although assessed as having many advantages, the efficiency of rental investment still depends on many factors such as project implementation progress, the speed of community formation, the ability to attract universities and businesses as well as the general developments of the real estate market.
In addition, investors also need to calculate factors such as financial costs, room vacancy, management and maintenance costs before deciding to use financial leverage for investment.
Experts believe that choosing the right products, identifying target tenants and building long-term exploitation plans will be more important than just expecting real estate price increases.
In the context that the Northwest area of Ho Chi Minh City is being heavily invested in infrastructure and urban planning, Vinhomes Hoc Mon is considered one of the projects that can benefit from the trend of population migration and industrial development. However, to fully assess investment efficiency, investors still need to monitor the actual progress of the project, the ability to fill in population and rental demand in each phase before making a decision.
