Hanoi apartment rental prices actually increased slightly in some projects in the first quarter of 2025, while some projects maintained the old rental prices of the end of last year. The fact that selling prices are still anchored at high levels and rental prices continue to increase slightly makes the dream of settling down of young people still facing many difficulties.
Apartment Rental Prices Slightly Increase In Some Projects
At the HH Linh Dam project (Hoang Mai district), the rental price of a fully furnished 2-bedroom apartment with an area of about 70 square meters is advertised at a rental price of 8.5-10 million VND/month, a slight increase compared to the price of 8-9.5 million VND/month in November 2024. With the same area and function, the rental price of 2-bedroom apartments in the Dinh Cong apartment complex also increased slightly from 8.5-9 million VND/month to 9-9.5 million VND/month. A 2-bedroom, 2-bathroom apartment at the Kim Van Kim Lu project with an area of about 70 square meters is currently being offered at a common rental price of 8.5-9 million VND/month, instead of the price of 8 million VND/month last year.
In Ba Dinh district, apartment rental prices at the Discovery Central project also recorded a slight increase compared to the end of last year when some landlords offered fully furnished 2-bedroom apartments for rent at a common price of VND18-19 million/month instead of the common rental price of VND17.5-18 million/month. Some landlords also slightly increased the rental price of 1-bedroom apartments with an area of 55 m2 to VND15-15.5 million/month. However, some landlords still kept the rental price at VND14-15 million/month. Similarly, at the Vinhomes Metropolis project on Lieu Giai street (Ngoc Khanh ward, Ba Dinh district), the rental price also continued to increase by about VND1 million compared to the end of last year.
At the Vinhomes Smart City project, the rental price remains the same as at the end of last year, with only a few landlords increasing the rental price due to renovations and additional furniture. Specifically, fully furnished studio apartments are still priced at VND7-8 million/month. For fully furnished 2-bedroom, 2-bathroom apartments, the rental price is still VND10.5-12 million/month. Fully furnished 3-bedroom apartments are still being offered for rent at VND14-15 million/month. In Nam Tu Liem district, the common rental price for fully furnished 3-bedroom apartments at The Matrix One project is still VND26-28 million/month. However, some landlords have offered the price up to VND29 million/month due to additional furniture. Some 2-bedroom apartments in this project also recorded an increase of about VND1 million/month compared to the end of last year.
Why Are Apartment Rents Increasing?
Regarding the fact that apartment rental prices are increasing, Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Research Institute, said that the increase in apartment rental prices comes from many reasons. Firstly, the demand for rental is increasing and secondly, the selling price of apartments is also constantly increasing in the market. Therefore, when homeowners buy at a high price, they will also rent at a high price to balance the investment cash flow as well as ensure profits. However, Ms. Mien emphasized that it is undeniable that the profit margin from renting apartments is not keeping up with the increase in house prices and tends to be increasingly low.
Ms. Mien emphasized that the current rental price increase rate is only about half of the house price in 2024. The profit rate for renting apartments in Vietnam is lower than saving, only fluctuating around 4%, even in some projects the rental rate is below 2%.
In addition, another reason for the increase in apartment rental prices is the increase in construction material prices, maintenance costs and apartment management fees, which also contribute to pushing rental prices to a new level. This is common in high-end apartment projects with full amenities and services. And especially, young people are having a different and more innovative way of thinking and living when they value flexibility in choosing a place to live. They prioritize renting a house to easily change their place of residence according to work or young people change their place of residence because they choose a new lifestyle, or access areas with better amenities. This is also a reason that contributes to promoting the development of the rental apartment market.
The Deputy Director of the Vietnam Real Estate Research Institute also said that the continuous increase in rental prices has made it difficult for many workers, especially young people with low and middle incomes, to maintain their lives in big cities. Because the cost of renting a house accounts for 35-50% of their income, not to mention other expenses, young people have almost no savings. This group of customers has been forced to reduce their criteria for renting a house, such as accepting to go far away, choosing lower quality projects to have a place to live in big cities.
