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A Controversy Over Office Rent Forecast

2023-05-05 02:00:35

How does the office rent change? At least three foreign real estate management and consulting firms in Vietnam, CB Richard Ellis (CBRE), Savills and Jones Lang LaSalle, opposed Cushman & Wakefield's prediction. They believe that due to strong demand, office rents will stay steady, not sharply, or will decline slightly. Brett Ashton, Managing Director of Savills Vietnam, says:

Rental restrictions are still a controversial factor in the rent regulation system. Historically, "economic rent" is regarded as the concept of exploitation as economists such as Adam Smith and David Ricardo think that landowner production has little value. Modern rent restrictions (sometimes referred to as rent balance and rent stabilization) aim to protect tenants of individual housing from compulsory stepwise rents. While the landlord surely obtains investment income, it raise the rent excessively, and the control authority (even if it is a parliament or not) regards it as fair

Renting is considered a business based on your request. This seems to be a controversial issue with two answers. From a financial point of view, rental of housing assets is considered passive income. Investors do not have to pay a self-employed tax when reporting a rental property. In this sense, borrowing real estate is not considered a "business" of the final return. However, from a professional point of view, many people are getting full-time living from passive income. As you mentioned above, you can regard the mature business operation and rental property equally as equivalent. In this shot, borrowing a house can be considered a business