According to research by Batdongsan.com.vn, since entering the fourth quarter of 2023, the rental market has fluctuated strongly with increased interest in all segments. However, small apartments with an area of less than 35m2 have received the most attention.
The reason for the change in interest in these types of apartments is due to fluctuations in rental prices. In the recent period, rental apartments and serviced apartments in the central area have increased significantly in price, while some other rental products are still at high prices.
The survey results of Batdongsan.com.vn also show that the average monthly rental price in Hanoi for apartments is 13 million VND/month, and for boarding houses is 3.5 million VND/month. Meanwhile, in the Ho Chi Minh City market, the average rental price for apartments is 12.5 million VND/month, and for boarding houses is 4.8 million VND/month. This rental price also has a large difference between the central area and the suburban and neighboring areas of the city.
Large-area apartments recorded high anchor prices.
The above rents are quite high compared to income, causing tenants to consider. In the two major markets mentioned above, the majority of those surveyed said that rents should be lower than 20%. Only 12-22% said that current rents are reasonable.
With rents remaining high, solutions reported to solve this problem include renting a smaller home (67%), renting a home further away (27%), living with more people (20%), renting a home with fewer amenities (13%) and renting a home with less furniture (7%).
With the shift in rental demand, most landlords said they would not reduce rents or reduce rents by less than 10%. This has caused many central areas to experience vacancies, with tenants shifting to suburban areas and neighboring provinces.
Therefore, at the end of the year, in some central districts, there was a mass eviction scene, especially large apartments with high rental prices, up to 20 million VND/month. For example, in Ho Chi Minh City, many areas for renting high-end serviced apartments or condominiums continuously had to post advertisements to find tenants.
In addition, in some suburban areas such as Binh Chanh, Nha Be districts or neighboring areas of Ho Chi Minh City such as Di An (Binh Duong), Bien Hoa, Nhon Trach (Dong Nai), there has been a shift of a large number of tenants to find new places to live. Among them, a part of the tenants work in Thu Duc City and in the central districts of Ho Chi Minh City.
Apartments for rent in the suburbs and neighboring provinces of Ho Chi Minh City welcome a large number of customers from the center.
Apartments for rent in this area are often cheap, even only half of the price in the central area. For example, in some apartment buildings located on Pham Van Dong Street or Di An City, the rental price of a 2-bedroom apartment ranges from only 5-6 million VND/month depending on location and furniture. In addition, tenants are also exempted from service fees because it is still within the preferential period of the investor. Meanwhile, if renting a similar apartment in the central area, the rental price can be up to 12-15 million VND/month.
Many opinions say that the trend of tenants moving to suburban areas will continue because in the near future, rental prices are expected to not decrease. In addition, apartment prices are likely to continue to increase in the new development cycle of the market. This leads to the possibility that rental prices may continue to increase to ensure the profitability of the landlord.
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