HÀ NỘI — Rental housing market in Hà Nội has experienced a notable upward trend, driven by increasing demand and the rising prices of apartments. 

According to batdongsan.com.vn, rental prices for fully furnished two-bedroom apartments in the first quarter of 2025 rose by VNĐ1million per month against at the end of 2024 to VNĐ8.5-10 million in HH Linh Đàm apartment areas, Hoàng Mai District, and VNĐ9-9.5 million in Định Công apartment buildings.

Kim Văn - Kim Lũ apartments also saw an increase, fetching VNĐ8.5–9 million per month for an unit having two bedrooms and two bathrooms, compared to VNĐ8 million last year.

In the city’s central Ba Đình District, apartments at Discovery Central have edged up to VNĐ18-19 million per month for furnished two-bedroom units against the previous rental price of VNĐ17.5-18 million. One-bedroom units in the area also saw modest increases, with some now renting for VNĐ15-15.5 million per month.

The trend continued at Vinhomes Metropolis on Liễu Giai Street and the Matrix One project in Nam Từ Liêm District, where rental prices have risen by approximately VNĐ1 million since late 2024. 

According to Phạm Thị Miên, deputy director of the Vietnam Real Estate Research Institute, rising rental demand and continuously increasing apartment prices are the primary drivers behind this trend. Landlords are compelled to raise rental rates to ensure cash flow and investment returns.

Other cost pressures - such as rising construction materials, maintenance fees, and management charges - are also contributing to higher rents, particularly in high-end complexes with full amenities.

Besides that, the evolving lifestyle preferences of young professionals are also shaping the rental housing market. Many prioritise flexibility and mobility, opting to rent rather than buy, according to Miên. 

"Currently, in the rental housing market, aside from apartments purchased for investment, there is also a significant number of individual houses being rented out for residential purposes," said Đỗ Thị Thu Hằng, senior director of advisory and research at Savills Hà Nội.

"Rental houses are evolving to compete with rental apartments. Homeowners or investors who lease properties and sublet them, are offering the market a variety of small, well-equipped apartments with smart layouts and affordable prices."

These units often feature minimal furniture, with a strong focus on cleanliness and a modern, civilised living environment, appealing especially to workers and students.

Many of these residential areas also include stylishly designed cafés and convenient retail stores. This added convenience allows rental houses to compete strongly with apartments, which typically offer two- to three-bedroom units at significantly higher prices," Hằng said.

However, Miên said rising rental costs are increasingly burdensome for low- and middle-income tenants, particularly young workers. Rent now consumes 35–50 per cent of their income, making it difficult for them to save or maintain a stable lifestyle in major cities. Many are being forced to compromise - moving further away from city centres or settling for lower-quality accommodations.

To address this, the Vietnam Real Estate Brokers Association has urged the Government to promote the development of affordable housing through initiatives such as tax incentives, low-interest loans, and reduced land costs. 

They also advocate for the creation of a long-term rental housing fund to support civil servants, workers, and young professionals.

Meanwhile, "the expansion and development of industrial parks in Hà Nội, coupled with strong FDI inflows, are driving significant demand for serviced apartments,” said Mathew Powell, director of Savills Hà Nội.

Hà Nội attracted $2.2 billion in FDI from 293 newly registered projects in 2024, a 30 per cent increase year-on-year, placing it fifth nationwide.

Demand for serviced apartments is being driven primarily by foreign professionals, engineers, and technicians working in the city’s 10 operational industrial parks. With nine of these parks at full capacity, the market is expected to expand further.

In the first quarter of 2025, total stock in Hà Nội reached 6,246 units across 64 projects, remaining stable quarter on quarter and increasing by 3 per year on year.

Occupancy improved by 2 percentage points quarter on quarter and 4 percentage points year on year to 84 per cent, with Grade A and B apartments having higher occupancy quarter on quarter, while Grade C declined 2 percentage points.

Average rentals rose by 1 per cent quarter on quarter and 2 per cent year on year, with rents in Grade C being the only segment to decrease.

Looking ahead, 17 new projects are set to introduce 4,077 units, with 2,889 scheduled for completion in 2025. The Tây Hồ View Complex will lead with the largest Grade A supply. The majority (83 per cent) of future inventory will be located in secondary areas, with the rest in the western region. Branded operators will dominate this segment, accounting for 87 per cent of upcoming supply. — VNS