(Dan Tri) - The high price of buying and selling apartments in Hanoi has led to an increase in rental prices. The rental price of apartments in the city center is even equal to a worker's monthly income. Many people feel dizzy.
Rents soar, tenants move to suburbs
Mr. Nguyen Tu (Hoa Binh) shared that his family is renting a 65m2 apartment with 2 bedrooms in Cau Giay district (Hanoi). His family has rented this apartment since 2020 for 15 million VND/month, fully furnished.
Each month, the couple earns about 35 million VND. After paying the rent, the family barely has enough left to cover living expenses. However, recently, the landlord announced that the rent will increase to 20 million VND/month starting May 1 due to "increasing apartment prices".
His family is considering renting an apartment in a more remote area to get a lower rent. "The rent of 20 million VND/month is equal to my salary. If we continue renting, my family will not be able to afford it," he said.
Apartment rents are rising, many people are considering moving to other areas with "softer" prices (Photo: Tran Khang).
Ms. Tran Tuyet (Ninh Binh) said that her family has just moved to a mini apartment in Bac Tu Liem district (Hanoi). The rent is 7 million VND/month. Previously, her family rented an apartment in Thanh Xuan district for 15 million VND/month.
She said that in early 2024, the apartment had a monthly rent of 10 million VND, but after only one year, the landlord increased the price twice to 15 million VND/month, also because apartment prices were increasing rapidly.
Apartment rental prices increase with purchase prices
Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - said that the price level of apartments continuously increased and set new levels, causing apartment rental prices to also tend to escalate, with an average increase of 10% to 20% in 2024.
The city center is almost devoid of apartments with rental prices under VND10 million/month. The common rental price for a one-bedroom apartment is VND10-15 million/month, and for a two-bedroom apartment is VND15-20 million/month. In the suburbs, the average rental price for an apartment is about VND6.5-15 million/month, up from the common VND3-8 million/month in less than 5 years.
According to him, the constant increase in apartment prices also directly affects the pricing strategy of landlords. When house prices increase, landlords increase rental prices to ensure profits and balance investment cash flow while the profit margin from renting apartments is getting lower and lower because rental prices cannot keep up with the increase in house prices.
The continuous increase in rents has made it difficult for many people, especially young people with low and middle incomes, to maintain their urban lifestyle when rent costs account for 35-50% of their income. Combined with other living expenses, young people have almost no ability to save. Most of them can no longer afford to pay, forcing them to downsize their living space, look for cheaper options or even leave big cities.
Expert Pham Duc Toan said that the sharp increase in apartment prices in the past year has caused rental prices to escalate. Last year, housing prices in many projects increased by 40-50% in one year, causing many homeowners to increase rental prices to maintain the value of their properties. He said that the high rental yield has helped the apartment segment become a choice for many investors.
Source: https://dantri.com.vn/bat-dong-san/gia-thue-chung-cu-o-ha-noi-bang-ca-thang-thu-nhap-khach-thue-choang-vang-20250313020115813.htm
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