Apartment rents continue to rise

(TN&MT) - Recently, the real estate market has encountered many difficulties and slow liquidity. Along with that, high housing prices and increasing interest rates on home loans have forced many people to switch to renting houses, and many investors have also switched to investing in apartments for rent. The increased demand has led to an increase in apartment rental prices.

Apartment rental prices in Ho Chi Minh City continue to increase in the context of the real estate market still facing difficulties.

New data from Batdongsan.com.vn shows that the average rental price of apartments in Ho Chi Minh City in early 2023 increased compared to the same period in 2022. Specifically, in the Ho Chi Minh City market, interest increased in all types of rental real estate, of which the strongest increase was in apartments, up 157%. In the first month of 2023, the average rental price of apartments in Ho Chi Minh City increased by 8% compared to the same period in 2022. Currently, the average rental price is about 13 million VND/month.

In fact, many high-end apartment projects for rent in District 1, Binh Thanh, District 4 and District 2 (old) have adjusted their rental prices since the end of 2022. Specifically, apartments for rent in Binh Thanh District such as Vinhome Central Park, Sunwah Pearl, City Garden, Saigon Pearl... have rental prices for 1-3 bedrooms of about 17-30 million VND/m2. High-end apartments for rent in District 4 such as The Tresor, Riva Park, The Gold View... all have rental prices from 16-40 million VND/month.

Not only luxury apartments, many mid-range and affordable projects have also increased in price. Mid-range apartments for rent in Thu Duc City such as D'Russo, Precia, Centana, Sun Avenua... in March 2022 had rental prices from 7-15 million VND/month, but now they have been adjusted to the lowest level from 8.5-18 million VND/month. Some affordable projects with rental prices from 5-8 million VND/month have also been adjusted to increase to 6.5-10 million VND/month for apartments with an area of 48-60m2.

According to Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn Southern Region, the reason for the increase in apartment rental prices is that many customers do not have enough money to buy a house, so they will rent or some groups will rent and then sublet to serve domestic tourism . In addition, some units will reduce their working model in 2022, and by 2023, they will return to the market, renting small areas of 50-70 m2 in central areas to work. On the other hand, the increasing urbanization trend has led to an increase in demand for apartment rentals, making the rental market more vibrant than before.

Ms. Hoang Nguyet Minh - Director of Commercial Leasing Department of Savills Hanoi also said that the rental demand is increasing from tenants who are able to recover quickly after the pandemic such as banks, e-commerce, information technology... so the market will continue to record high demand in the near future.

Looking at the rental apartment market, many experts believe that the upward trend in real estate rental prices in Ho Chi Minh City will continue in the coming time and will increase sharply in the high-end apartment segment. In the past 2 years, Ho Chi Minh City has had very few new projects implemented, reducing supply pressure. The return of international tenants will increase rental demand for high-end and serviced apartments.

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