Mr. Nguyen Van Binh (36 years old, working in Hanoi) informed that apartment rental prices in inner-city districts have been fluctuating strongly in recent times due to increased demand from people.
According to Mr. Binh, instead of choosing to live in the inner city, many families like him are tending to look for apartments with an area of 48m2 or more away from the center of Hanoi such as Thanh Tri and Hoai Duc districts, with suitable rental prices from 7-10 million VND/month.
Similarly, Mr. Nguyen Van Loi (34 years old, a technical staff renting an apartment in Hoai Duc district) informed that his whole family used to rent a house in My Dinh ward, but the price was expensive, the rooms were very cramped and inconvenient.
After a few months of searching, Mr. Loi's family moved to live and rent an apartment in Hoai Duc district for 8 million VND/month, convenient to move when he was working in an industrial park near Nhon (Bac Tu Liem district).
"Residences in the inner city are now expensive and crowded. My family is renting a 2-bedroom apartment in Hoai Duc district for only 8 million VND/month. Although this area is far from the center, the road to work is convenient, the residential area is quiet, and you can save nearly 2 million VND/month compared to renting a house in the inner city" - Mr. Loi said.
Many real estate experts commented that apartment prices in big cities such as Hanoi and Ho Chi Minh City have increased sharply in the past year, causing rental prices to escalate.
Mr. Le Bao Long - PropertyGuru Vietnam Strategy Director - acknowledged that apartments for rent are an attractive investment channel for investors with long-term vision, due to high average profit rates ( combined with increased rental profit prices and over time), fluctuating around 12.5%/year.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that in reality, the rate of increase in people's income is not keeping up with the rate of increase in house prices, making it increasingly difficult for people to access apartments.
Meanwhile, primary apartment projects are expected to have a higher price level in the future, as investors have to optimize profits because costs are pushed up. This partly explains why many families are currently tending to rent houses.
Savills' report also shows that in the first quarter of 2025, the serviced apartment segment will continue to improve in terms of operations. Total supply is stable quarterly with 6,246 units in 64 projects, up 3% year-on-year.
The average rental price of serviced apartments per square meter in the Hanoi market in the first quarter of 2025 reached 610,000 VND/m2 (rental price includes service fee, excluding VAT).
Rental prices of high-end and affordable apartments have increased quarterly, while mid-range apartments are the only segment with stable rental prices quarterly.
