Many Villas in Da Lat are being rented at what price?

Recently, the newspaper “Người Lao Động” reported that Villa No. 63 Ho Tung Mau (Kim Cuc roundabout, Ward 9, Da Lat City) is located on “golden land” but is rented to the Branch of Vietnam Airlines Corporation – Vietnam regional joint stock company for only nearly 8 million VND/month.

This issue has surprised many people because this villa is located on a plot of land of nearly 920 m^2 and has a prime location, just a few hundred meters to less than 2 km away from famous attractions such as Da Lat night market, Lam Vien Square, Dinh II, Xuan Huong Lake, and inter-provincial bus station.

To compare, many other villas in Da Lat are currently being rented at nearly double, triple the price, and have increased significantly compared to the previous renting cycle. At the end of November 2023, the People’s Committee of Da Lat City agreed on the rent price for the next rental cycle for 10 villas rented to other businesses, specifically:

• Villa 37B Hung Vuong with a rent price of nearly 8.5 million VND/month – over 500 million VND/5 years.
• Villa No. 25 Dinh Tien Hoang with a rent price of nearly 12.6 million VND/month – over 750 million VND/5 years.
• Villa No. 02 Nguyen Thai Hoc (Thanh Thuy restaurant in Xuan Huong Lake) with a rent price of nearly 15 million VND/month – nearly 900 million VND/5 years.
• Villa No. 21 Hung Vuong with a rent price of nearly 15.4 million VND/month – nearly 922 million VND/5 years.
• Villa No. 02 Dong Da with a rent price of nearly 13.2 million VND/month – 790 million VND/5 years.
• 12 villas on Nguyen Du, Pho Duc Chinh, and Quang Trung streets rented to businesses with a total amount of over 13 billion VND/5 years. Thus, on average, each villa has a rent price of nearly 1.1 billion VND/5 years, about 217 million VND/year, over 18 million VND/month.

Notably, Villa No. 23 Quang Trung rented to NTH Cable Television Joint Stock Company with a rent price of over 23 million VND/month – nearly 1.4 billion VND/5 years. However, at plot No. 23 Quang Trung, there is no longer any villa, the investor has built a high-quality entertainment project, but it has deviated from the investment objective by putting the entire project into hotel operation.

Many villas have drastically increased rental prices

In addition to the villas mentioned above, some other villas for rent have proposed new rental prices. Compared to the initial cycle, the prices have increased from 50% to 277%. Meanwhile, the rental price for Villa No. 63 Hung Vuong has only increased by 10%, and there are no adjustments in the contract or addendum to the contract despite changes in the rental unit price by the state.

Specifically, Villa No. 22 Nguyen Viet Xuan has a rental price of nearly 16.3 million VND/month for the 2015-2020 cycle, and the 2020-2024 cycle is expected to be about 39 million VND/month – over 2.34 billion VND/5 years – an increase of nearly 140% compared to the previous cycle.

Villa No. 06 Yet Kieu has a rental price of nearly 8.6 million VND/month for the 2015-2020 cycle, and the 2020-2024 cycle is expected to be nearly 16.7 million VND/month – over 1 billion VND/5 years – an increase of 94%.

Villa No. 12 Huynh Thuc Khang has a rental price of over 9.8 million VND/month for the 2015-2020 cycle, and the 2020-2024 cycle is expected to be nearly 17.8 million VND/month – nearly 1.1 billion VND/5 years – an increase of 81%.

Villa No. 17 Hung Vuong has a rental price of over 11.1 million VND/month for the 2015-2020 cycle, and the 2020-2025 cycle is expected to be nearly 19.5 million VND/month – nearly 1.17 billion VND/5 years – an increase of 75%.

The 4 villas on Co Giang street have a total rental price of nearly 50.5 million VND/month for the 2015-2020 cycle (an average of nearly 12.7 million VND/villa/month), and the 2020-2025 cycle is expected to be nearly 82 million VND/month – over 4.9 billion VND/4 villas/5 years – an increase of 62%.

Significantly, the 11 villas on Nguyen Du street have a total rental price of nearly 3.65 billion VND for the 2014-2019 cycle (an average of over 331 million VND/5 years – 66 million VND/year – just over 5.5 million VND/month).

For the 2019-2024 cycle, the rental price for these 11 villas will increase to over 13.75 billion VND/5 years (an average of 1.25 billion VND/5 years – 250 million VND/year – 20.8 million VND/month). This expected price increase is about 277% compared to the previous rental price.

Rental prices for villas and real estate in Lam Dong

According to Decision No. 259/QD-UBND dated February 5, 2016, by the People’s Committee of Lam Dong Province, the standard price for regular houses of level 1 is 31,000 VND/m^2/month, level 2 is 30,000 VND/m^2/month, level 3 is 29,000 VND/m^2/month, and level 4 is 25,000 VND/m^2/month. For level 1 villas, the prices are 44,000 VND/m^2/month, level 2 is 51,000 VND/m^2/month, level 3 is 57,000 VND/m^2/month, and level 4 is 62,000 VND/m^2/month.

The rental prices for villas and houses are also calculated with 4 coefficient factors including: industry, purpose of use, quality of use, and location of the villa or house.

These prices apply to organizations, households, and individuals who rent for work, production, and business activities in the province. In case the lessee is a special organization, the specific price will be decided by the People’s Committee of the province.

Source: Business Today