High rent prices make tenants 'disappointed'

Ms. Tran Thi Lan Anh (Binh Thanh District, Ho Chi Minh City) said that she recently had to sit down with her landlord to negotiate a rent increase of 2 million VND per month starting in July 2023.

“ My husband and I moved into this one-bedroom apartment at the beginning of 2021. The pandemic affected our income, so the landlord reduced the rent by 30%. By July 2022, the rent returned to normal at 8 million VND per month. After a year, in the new contract, the landlord wants to increase the rent by 2 million VND, which shocked me, ” said Ms. Lan Anh.

Similarly, Mr. Bui Tuan Linh (Ha Dong, Hanoi ) also said that at the end of May, his family received a notification from the real estate agent that the landlord intended to increase the rent by 1.5 million VND per month.

The couple's combined income is only about 30 million VND per month, of which 5 million VND is for rent. Now, with an increase of 1.5 million VND, it means Linh's monthly finances will only be a little over 20 million VND. Besides the ever-increasing daily living expenses for a family of four, Linh is also trying to save up enough money to buy a house and settle down.

" With rent prices rising like this, our savings are shrinking, while there are so many unforeseen expenses. At this rate, it will be difficult to afford a house ," Linh said.

Rising rents leave tenants frustrated - 1 — Apartment rental prices in Hanoi and Ho Chi Minh City have been trending upwards recently. (Illustrative image)

Surveys conducted in Hanoi show that apartment rental prices have been trending upwards recently, especially in districts near or within the city center. The common increase is around 1-2 million VND per apartment per month, equivalent to a 10-20% increase compared to the beginning of 2022.

For example, some apartments on Nguyen Co Thach Street (Nam Tu Liem District) have seen rental prices increase from 7-8 million VND/month to 9-10 million VND/month (for a 3-bedroom apartment). In apartment complexes such as Vinhome Smart City (Dai Mo), The Pride (To Huu), Greenbay Me Tri (Nam Tu Liem District), Sky City Lang Ha, etc., rental prices have increased by 1 to 3 million VND/month.

In Ho Chi Minh City, a survey by the Vietnam Association of Real Estate Brokers (VARS) shows that over 70% of recently expired apartment rental contracts (typically one-year contracts) have been renewed with an average price increase of 10-20% or more.

Data from Batdongsan.com.vn also confirms this trend. Specifically, in the first few months of the year, in Hanoi, apartment rental prices increased by 8% compared to 2022. According to the survey, the average rental price is currently around 13 million VND/month. Demand for apartment and room rentals also led the market, with rental searches increasing by 112% and 38% respectively.

Meanwhile, the average rental price for apartments in Ho Chi Minh City is 4%. Apartments are also the type of property with the strongest interest (up 157%), followed by boarding houses (up 107%).

According to experts, the reason for the continuous rise in rental prices is the persistent increase in home sales, making renting a popular choice for many people.

According to Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, 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 .

Additionally, some businesses streamlined their operations in 2022, then returned to the market in 2023, renting small spaces of 50-70 square meters in shopping centers to operate.

On the other hand, the increasing urbanization trend and the large number of immigrants to the city center have led to an increase in the demand for renting apartments and boarding houses; the rental market has become more vibrant than before.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com, also believes that increased demand will lead to higher rental prices. If the scarcity of new project supply continues, causing house prices to rise, people will tend to wait and see, shifting from buying to renting more often.

Ngoc Vy

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