The rental apartment market faces difficulties in supply in the coming period.

The low-cost rental market will have many fluctuations.

According to data from Batdongsan.com.vn, in the first 8 months of 2023, the demand for renting and buying apartments under 35m2 in Hanoi increased by 11%, while in Ho Chi Minh City it increased by 24% compared to the same period last year. These are usually studio apartments in large projects or apartments in mini-apartments, which attract people's attention due to their affordable prices and easy liquidity and rental.

However, after the tragic mini apartment fire in Hanoi, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn commented: "The next phase will be very difficult for mini apartment businessmen as well as buyers and renters of this type because the authorities will review projects, not only in Hanoi but across the country...".

This expert believes that increased inspections will force many mini-apartment owners to temporarily suspend their business because they have not complied with strict fire prevention and fighting regulations. They will lose a lot of time and money to repair and meet the conditions for operating the apartment building.

The upcoming inspection of fire prevention and control measures will affect the supply of low-cost rental apartments such as mini apartments.

For tenants, they can end their lease and find a new place if their current place is not safe. However, the number of affordable apartments that meet security and safety criteria is very small, so the rent will increase. For buyers of mini apartments, they are in a dilemma, it is difficult to sell but they do not have a red book to live in and are always worried about incidents.

Suggesting a solution for those who own mini apartments, Mr. Nguyen Quoc Anh said that an apartment management board should be established (if not already in place) to discuss and request the owner to maintain and repair the apartment, ensure hygiene factors, fire prevention and fighting safety, equip enough equipment to prevent emergency situations, and serve the living needs of the residents well.

Regarding the general market developments, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, said that in the coming time, the supply of apartments will likely decrease because investors will find it more difficult to apply for construction permits and open apartments for sale when management and inspection of fire prevention and fighting and rescue are stepped up.

Demand for rental housing and apartments is still increasing strongly in the context of supply being affected (Photo: Batdongsan.com.vn)

Meanwhile, the cost of construction and operation of apartments will increase according to the design and acceptance and maintenance work in accordance with fire prevention and fighting regulations. The demand for mini apartments may decrease, but this rate is insignificant, the demand for apartments in general is still very large. In the context of limited supply, high demand and increasing costs, apartment prices are unlikely to decrease.

“Instead of looking for mini apartments in densely populated areas, people will look to social housing projects and apartment projects far from the center but ensure safety, and the price is also cheaper than apartments in the inner city. The supply of these types is not abundant, so the selling price can gradually increase when demand increases. In addition, small apartments in apartment projects of reputable investors, with full fire prevention and fighting acceptance, will also attract more attention,” Mr. Dinh Minh Tuan shared.

The market continued to show signs of recovery in August.

In the July 2023 market report, Batdongsan.com.vn provided actual data, showing that after a decline in supply and demand throughout the first half of 2023, the real estate market began to show signs of "warming up". Specifically, the level of interest in real estate for sale nationwide increased by 6%, the number of real estate listings increased by 4% compared to June.

In August, these indicators continued to maintain their upward momentum. Data from Batdongsan.com.vn showed that the demand for real estate nationwide increased by an average of 5% compared to July, and the number of real estate listings also increased by 2%. Thus, the market has witnessed two consecutive months of increasing demand for real estate searches and listings.

Notably, in August 2023, in the Hanoi market, land plots were the type of property with the highest demand for purchase - up 12% compared to the previous month. Apartments, private houses, townhouses, and villas in Hanoi also had an increase in interest of 7% - 9%. However, searches for project land decreased by 7% compared to July, showing that this type of property needs more time to recover.

Interest in the market remains strong.

In Ho Chi Minh City, the highest demand for buying townhouses and villas (up 7%) last month. The level of interest in apartments, private houses and land projects in Ho Chi Minh City still maintained a stable growth rate, from 2% - 4% compared to July. Land plots were the only type of property with a slight decrease of 1%.

In the rental market, the demand for real estate rental nationwide in August increased by an average of 9%, but the number of rental listings decreased by 2% compared to the previous month. In particular, the number of interested houses increased sharply with an increase of 38% in Hanoi and 32% in Ho Chi Minh City. This is the peak season for students to start school, so the demand for rental houses from students increases.

However, the market did not have many positive changes like real estate types serving real estate needs, shops for rent in Hanoi and Ho Chi Minh City recorded a decrease of 2% - 5% in interest compared to the previous month. One of the issues affecting the market for renting shops and premises is the decrease in consumer purchasing power and the general difficulties of many individuals and business units.

Source: https://www.congluan.vn/thi-truong-can-ho-cho-thue-gia-re-se-gap-kho-ve-nguon-cung-trong-giai-doan-toi-post265392.html