Experts caution against investing in shophouses

05/30/2019

Investing in the booming shophouse segment in HCM 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.- VNS Photo

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