Demand for high-end apartments in HCM City and their rents have been declining rapidly in 2023. — Photo tuoitre.vn

While rents for affordable apartments remain steady in HCM City, they have fallen sharply and continue to do so in the case of high-end apartments.

According to a report by Colliers Viet Nam, the highest rental for a serviced apartment has decreased from US$8,125 per month (VND190 million) last year to $7,500 (VND175 million) now.

The same has happened in the mid-priced segment, with rents dropping from VND10-15 million ($436-654) to VND6-12 million ($260-523).

Nguyen Trung Trinh, who owns a residential building on Ly Tu Trong Street in District 1, said her tenants used to be foreigners working for international companies who were willing to pay $600 or more for a serviced apartment.

But after COVID-19 began she could not find any takers even when offered discounts of 15 per cent for six months and 30 per cent for a year.

Apartments on Le Thanh Ton, Hai Ba Trung and Ly Tu Trong, where many international companies are located, have also suffered rental drops. But despite a fall in rents from VND10-15 million to VND6-12 million now, and easing of lease conditions, they find it hard to attract lessees.

The chief reason is that a large number of foreign experts have not returned to work after the pandemic, especially from China.

Besides, COVID-19 has altered working habits, and professionals can now work and manage remotely and do not need to come to Viet Nam or stay for long, experts pointed out.

Since the beginning of 2020, the city’s high-end apartment leasing market has seen a drop of 30 per cent.

But demand for apartments costing up to VND5 million, located mostly in outlying districts and rented by young families, has been strong. — VNS