Individual landlords for foreign renters in Hanoi are facing harsh competition against a rising numbers of real estate corporations.
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| Owners of small-sized apartments in Quang An are seeking for renters |
In the past three years, landlords in Tay Ho District's Quang An Ward, the hub for foreign renters, are trying to fulfill customer' demand in order to stay in business.
Nguyen Van Binh, from Fair Real Estate Broker Company, on To Ngoc Van Street, said most apartment and home prices have been lowered by 10-20% compared to last year. This shows a decline in demand, he said.
Rental fees for one-bedroom apartments has been stagnant at between USD500-700 per month. Two-bedroom apartments have been between USD800-1,500 per month.
The Vice Chairman of Quang An People's Committee Dang Van Hoi said that more landlords have been joining the market in the last three years with a total number of 800 families.
Many landlords are also adjusting rental fees and providing more services.
"While before we only agreed on one-year-contract, we now have to accept three-month or six-month contracts," a landlord in Quang An said.
At the same time, many brokers claimed to have been meeting difficulties.
Binh said that there were now three sources of apartments for rent, including individual landlords, big housing projects at Ciputra, Trung Hoa –Nhan Chinh, My Dinh - Song Da, and some investors of rental housing projects for foreigners.
"The higher supply means that we have to pay more attention to improving services to retain customers," he said.
Do The Thiep, CEO of Duy Hoang Minh company who invested in the Elegant Suites Westlake Apartment Building in Quang An also said that those with poor quality and bad service will gradually lose ground.
