Home rental market booming
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Searches for rental properties in Hanoi and Ho Chi Minh City surged 101% in January against last year, while rents rose, according to the real estate website Batdongsan.
In Hanoi, searches for rental apartments and houses increased 112% and 38%, respectively. The respective figures for HCMC were 157% and 107%.
The average rent of apartments in Hanoi and HCMC climbed up 8% and 4%, respectively. The average rent of rental houses increased 33% in Hanoi and 18% in HCMC.
Dinh Minh Tuan, head of Batdongsan in the southern region, said the reasons include a higher demand from enterprises and migrant workers.
He said some firms, which downsized last year, are now renting premises with an area of 50-70 square meters in apartment blocks in city centers.
The higher demand has led to higher rents.
Selling prices of apartments have increased 30-40% over the past two years, but rents have risen at lower rates.
Questions & Answers
Q.What is driving the increased demand for rental properties in Hanoi and Ho Chi Minh City?
What is driving the increased demand for rental properties in Hanoi and Ho Chi Minh City?
The surge in demand is attributed to higher activity from both enterprises and migrant workers. Some businesses, having downsized previously, are now seeking to rent premises within city centre apartment blocks.
Q.How have rental price increases compared to apartment selling price increases recently?
How have rental price increases compared to apartment selling price increases recently?
While rents have risen, their increase has been at a lower rate compared to apartment selling prices. Apartment selling prices have climbed by 30-40% over the last two years.
Q.Which city experienced a higher percentage increase in apartment rental searches?
Which city experienced a higher percentage increase in apartment rental searches?
Ho Chi Minh City saw a higher percentage increase in apartment rental searches, rising by 157%. Hanoi's apartment rental searches increased by 112%.
Q.What size premises are firms reportedly looking to rent in city centres?
What size premises are firms reportedly looking to rent in city centres?
Firms that are now re-entering the market are reportedly looking to rent premises measuring between 50 and 70 square metres. These are typically located within apartment blocks in city centre areas.