After a year of the economic situation in general and the real estate market in particular facing many challenges, for many people at this time, renting a house has become a mandatory option, not an option.
According to Batdongsan.com.vn's Report on Real Estate Consumer Trends and Psychology (CSS), in the second half of 2023, among the three common reasons for people wanting to rent a house, "flexibility is a priority". ” accounts for the largest proportion (3%), “don't want to buy a house because the price is not reasonable” accounts for 38% and “can't afford to buy a house” accounts for 29%.
However, in the first half of 2024, "not enough money to buy a house" has become the top reason why people choose to rent a house, accounting for 33%. The motivation to rent a house because of "prioritizing flexibility" has reduced its proportion to only 27%. It can be seen that the financial trend of renting does not allow real estate ownership to increase in the first half of 2024.
Among them, apartments are the type of real estate that renters are most interested in (43%), followed by private houses (18%) and motels (18%), only a small part (9%) are interested in renting. Interested in townhouses for rent.
Mr. Le Bao Long - Strategy Director of Batdongsan.com.vn said that most Vietnamese people are only willing to spend 10% - 30% of their income on rent each month.
He analyzed: "Currently, the average rental price of boarding houses in Ha Noi and Ho Chi Minh City are 3,5 and 4,8 million VND respectively, the average apartment rental price in these two cities is 2 - 12,5 million VND. This means that, for a person/household to have enough money to rent a house, their total monthly income must be from 13 - 15 million VND if choosing a boarding house and 20 - 30 million VND if renting an apartment. This is not a low income level for the majority of Vietnamese people. Therefore, the high rental price level is an obstacle for people.
Mr. Le Bao Long added that to overcome financial difficulties, tenants actively look for properties with smaller areas or located farther from the center.
Specifically, according to the CSS Report for the first half of 2024, when asked about adaptation plans when house rents are high, 67% of real estate consumers plan to rent a smaller house, 27% will rent a farther place, 20% said they would live with more people, 13% would rent a place with fewer amenities.
In a context where the majority of tenants are trying to tighten their budgets and expect a more reasonable price, 70% of landlords are also willing to reduce rent, with the common reduction being less than 10%.
SOUTH ENGLAND