Hanoi apartment rental prices are among the most expensive in Asia

The information was provided by Global Property Guide - a research unit in 60 countries on 4 continents, headquartered in Northern Europe - in its report on the apartment buying and renting market in 15 major cities in Asia. This data was collected from market data in each region and reports published by management agencies as of early February.

Accordingly, in the apartment rental market, Seoul (South Korea) is the most expensive, up to 3,500 USD (about 88 million VND) for a one-bedroom apartment per month. Followed by Singapore (about 2,826 USD) and Hong Kong (2,100 USD).

Hanoi ranks 11th in terms of expensive apartment rental prices in the region. Tenants have to pay about 525 USD (more than 13 million VND) for a one-bedroom apartment per month. For a two-bedroom apartment, the average rent is up to 715 USD (18 million VND). This figure is higher than many cities in Asia such as Kuala Lumpur (Malaysia), Jakarta (Indonesia), Mumbai (India).

The increase in apartment rental prices in Hanoi has also been noted by many research units. In a recent tenant psychology report, real estate news channel Batdongsan said that rental prices in the capital tend to increase more strongly than in Ho Chi Minh City, averaging 19 million VND per month, as of the end of last year. This level increased by more than 10% compared to the beginning of 2024.

Meanwhile, in Ho Chi Minh City, the average rental price is 14 million VND per month, down about 28% compared to early 2023.

Explaining the above developments, Mr. Pham Duc Toan, General Director of EZ Property, said that the sharp increase in apartment prices in the past year has caused rental prices to escalate. He said that the high rental yield has helped the apartment segment to be chosen by many investors. Last year, housing prices in many projects continuously escalated, 40-50% after one year, causing many homeowners to increase rental prices to "maintain the value of the property".

Sharing the same view, Mr. Le Tiet Cuong, Head of Residential Sales, Savills Hanoi, said that the strong increase in demand contributed to the increase in rental prices. This demand comes from a group of people switching from buying to renting in the context of increasingly expensive apartment prices. Not to mention, after many fires in mini apartments and houses in alleys, a group of people have switched to renting houses in projects to ensure security and safety.

In addition, the expansion of industrial parks in many neighboring provinces and cities also increases the demand for housing for experts and workers. However, certain limitations in supply make many people still choose to rent houses in Hanoi, causing rental prices to increase.

High rental prices are becoming an obstacle for people, according to Mr. Le Bao Long, Strategy Director of Batdongsan. He said that people in the capital are having to spend a larger proportion of their income on housing needs, accepting "compromises on amenities and location" in the context of increasingly expensive rental prices.

According to a survey by this unit, more than half of respondents spend 31-40% of their income on housing rental costs in Hanoi, while this proportion in Ho Chi Minh City is about 21-30% of income.

In the context of escalating apartment rental prices, social housing is considered an effective solution, helping workers rent at low costs, with adequate facilities and ensuring safety and security. Mr. Pham Duc Toan proposed to boost the supply of social housing for purchase and rent by increasing preferential interest rates and taxes, creating conditions for accessing land funds to attract more businesses to invest in this segment.