Hanoi apartment rents on the rise

Demand increased by 13% from the previous quarter, and rents rose by 8-10% in and near the downtown area such as Hoan Kiem and Hai Ba Trung districts while a little further away, in districts like Cau Giay and Nam Tu Liem, they were up 14-16%.

A real estate agent said rents in and near the downtown have increased recently by VND1-2 million (US$42.5-85), and a two-bedroom apartment in Sky City Lang Ha now costs VND16-18 million a month.

Three-bedroom units in an old apartment block on Nguyen Co Thach Road in Nam Tu Liem District cost VND9-10 million.

Vo Thi Khanh Trang, deputy head of Savills Research, said apartment rents are increasing since the economy is recovering after Covid.

Nguyen Quoc Anh, deputy general director of Batdongsan, said people are increasingly opting to rent since the prices of houses and apartments have been on the rise.

Le Quoc Kien, a real estate analyst, said apartment rents are likely to rise by 20% from two years ago, but the yields remain lower at around 4% than in 2018-19, when they were 6%.

Many people are buying apartments to lease and then resell them at a profit.