The average cost of renting a two-bedroom apartment in Hanoi has reached VND 18 million ($750) per month, making it more expensive than Kuala Lumpur, Jakarta, and Mumbai, according to a report by Global Property Guide.
Hanoi’s Rising Rental Prices in the Asian Market
Global Property Guide, a real estate research organization operating in 60 countries across four continents, recently published data on apartment rental and purchase prices in 15 major Asian cities. The research, updated in early February, was based on market data and reports from local authorities.
The report highlights that Seoul has the highest rental costs in Asia, with a one-bedroom apartment averaging $3,500 per month. Singapore ($2,826) and Hong Kong ($2,100) follow closely behind.
Hanoi ranks 11th in the region for high apartment rental prices, with tenants paying $525 (VND 13 million) per month for a one-bedroom apartment. The average rent for a two-bedroom unit stands at $715 (VND 18 million). This figure is based on rental prices in central districts and Gia Lam District, collected from Vietnamese online real estate platforms.
Rental Price Surge Outpacing Ho Chi Minh City
The upward trend in Hanoi’s apartment rental prices has been noted by multiple real estate research firms. A report by Batdongsan, a property news platform, found that rental costs in Hanoi have been increasing faster than in Ho Chi Minh City, reaching an average of VND 19 million per month by late 2023—a 10% increase since early 2024.
In contrast, Ho Chi Minh City has seen a decline, with rents averaging VND 14 million per month, 28% lower than early 2023.
Factors Driving Hanoi’s Rental Price Increases
According to VnExpress, rising apartment selling prices have contributed significantly to rental price hikes in Hanoi’s central districts.
For instance, Discovery Complex (Cau Giay District): A furnished two-bedroom unit is now rented at VND 17–19 million per month, marking a 5% increase from early last year. The Matrix One (Nam Tu Liem District): An 88m² apartment costs VND 22–24 million per month, depending on furniture, excluding parking and service fees.
Even in suburban areas like Vinhomes Smart City, two-bedroom apartments in older buildings (2-3 years since handover) rent for VND 10–15 million, based on interior design. Smaller studio or one-bedroom units range from VND 7–10 million, with an annual increase of 5–7%.
Expert Insights on the Rental Market Surge
According to Pham Duc Toan, General Director of EZ Property, the sharp increase in apartment prices over the past year has driven rental prices higher. Many investors have raised rental rates to offset property value increases, with some projects seeing 40–50% price surges in just one year.
Le Tiet Cuong, Head of Residential Sales at Savills Hanoi, attributes the rise in rental prices to growing demand. Many potential homebuyers are postponing purchases due to escalating property prices, opting to rent instead.
Additionally, after a series of fires in mini apartments and alley houses, safety concerns have driven more tenants toward high-rise apartment complexes with better security.
The expansion of industrial parks in provinces surrounding Hanoi has also increased housing demand for foreign experts and workers. However, limited supply in these areas has led many to continue renting in Hanoi, further pushing up rental prices.
Rising Rents Becoming a Financial Burden
According to Le Bao Long, Strategy Director of Batdongsan, the rising cost of renting in Hanoi is becoming a major financial burden. Many residents must allocate a larger share of their income to housing, often compromising on location and amenities.
A recent survey found that, over 50% of renters in Hanoi spend 31–40% of their income on rent. In contrast, renters in Ho Chi Minh City spend a lower percentage, with 21–30% of income going toward rent.
Solutions: Increasing Social Housing Supply
To address rising rental costs, experts propose expanding social housing projects. This would provide affordable rental options with essential amenities and safety measures for lower-income workers.
Recommended policies include increasing financial incentives such as lower interest rates and tax benefits for social housing developers. Easier access to land funds to attract more investment in the affordable housing segment.
With these measures, Vietnam can create a more balanced rental market, ensuring that housing remains accessible amid rising real estate prices.
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Source: Vietnam Insider