Impact on Local Investors and the Market

Following the recent ban on short-term apartment leases in Ho Chi Minh City, investors and property owners are facing significant financial challenges. Icon 56, The Tresor, and Millennium are among the apartment complexes that have already enforced this new policy, leaving many like Hoang Tuan, who operates hundreds of Airbnb-like apartments, anticipating losses in the hundreds of millions of dong.

Stories of Struggle and Adaptation

Hoang Tuan, with six years in the business, rents apartments from owners at VND15-25 million a month each, only to lease them back to short-term renters for up to VND60 million per unit per month. The ban threatens to drastically reduce his monthly income. Similarly, Quynh Huong, who invested billions of dong into two apartments specifically for Airbnb-like services, now fears the inability to cover her family's living expenses and debts.

Market Shifts and Future Outlook

While the ban spells trouble for many, some see it as a move towards fostering safety and order in apartment complexes. Dinh Minh Tuan of Batdongsan and real estate analyst Le Quoc Kien suggest that this could steer the market towards genuine housing needs and boost the supply in long-term rentals, potentially lowering rents. However, the luxury apartment segment may suffer the most, with demand and market liquidity expected to plummet.

Enforcement and Tourism Impact

Despite the ban, some analysts question its enforceability, given past instances where landlords circumvented restrictions on short-term leasing. Vo Hong Thang of DKRA Group believes the ban will not significantly impact tourism, thanks to the high availability of hotels. However, properties that have imposed the ban have seen rents fall by 15-20%.