Don’t invest in HCM City shophouses, warn experts

Investing in the booming shophouse segment in Vietnam’s Ho Chi Minh City could end in losses, if market observers are to be believed.

Since 2014 shophouses built in condo projects have been in huge demand thanks to the high returns they fetched when resold or leased.

Even managing to buy one became difficult, such was the demand.

In a report, property consultant CBRE said the prices of shophouses rose by 261 per cent in the secondary market last year while villa prices only rose by 35-37 per cent.

They cost $2,700-4,000 per sqm and fetch rents of $10-30, meaning returns are much better than on bank deposits, researchers said.

 

Yet insiders warn that buyers should be very careful when investing in one.

According to a broker in District 7 the leasing market now is not as good as it was in past years.

“Only shophouses in old condo projects with high occupancy rates are in high demand and those in new projects are difficult to lease,” she told Viet Nam News.http://www.phnompenhpost.com/post-property/dont-invest-hcm-city-shophouses-warn-experts