In the past 2 years, in Hanoi market, the price of affordable and intermediate apartment line has not changed or even decreased slightly. However, the high-end apartment segment in the central area of Hanoi witnessed increasing rents in early 2019.
Affordable price apartments, intermediate “stamped” in place
Ha Dong, Hoang Mai and Nam Tu Liem – capital cities of low-cost and middle-class houses in Hanoi recorded the slowdown, even a slight decrease. For example, in 2016, Ms. Pham Hong Mai rented an apartment of more than 100m2, fully furnished in Van Khe urban area (Ha Dong) for 7 million VND / month. After 3 years, at the present time, this apartment retains the old rental price. Last year, Ms. Mai increased the rental price by 1 million VND but without waiting for customers, she was forced to return to the old price. “Many guests came to see the apartment but ended up choosing to rent apartments with the same area, also full of furniture in the project but the price is lower. My price increase is not feasible, I have to return to the old price, ”Ms. Mai shared.
At the end of 2018, Mr. Tuan Nam, owner of an apartment for rent of about 90m2, full of furniture in The Pride (Ha Dong) was forced to reduce the rent from VND 8 million / month to VND 7.5 million / month. More than 1 month after the former tenant returned home, he still could not find a new one. According to Mr. Tuan Nam, if he patiently waits for more, he can rent out at the old price, but the long wait, the frequent opening time for guests to see the house, working with the broker makes him decide to accept. receive VND 0.5 million off when meeting goodwill guests.
In fact, most other apartments in Ha Dong district such as Xuan Mai, Bac Ha, Usilk … also noted the situation that the rental price stood still or had a slight decrease.
In Hoang Mai, the apartments in Kim Van Kim Lu, HH Linh Dam, Gelexia Riverside … rents have not changed in the past 2 years. At Kim Van Kim Lu project, 3-bedroom apartments still have a rental price of VND 6-7 million / month, a 2-bedroom apartment is priced from VND 4.5-6 million / month; 1 bedroom apartment is 3-4 million VND / month. At HH Linh Dam, the popular rent for 1-bedroom apartment is VND 4 million / month, apartment 2 for sleeping is VND 5-6 million / month, apartment 3 sleeps from VND 6-7 million / month. Gelexia 2 bedroom has a rent of 5-7 million VND / month, 3 bedroom apartment is 6.5-8 million VND / month. Particularly, many apartments for rent in these projects recorded a slight decrease in rents of 3-5%.
In Nam Tu Liem, 2-bedroom apartments in Me Tri Ha and Me Tri Thuong apartments still have a rent ranging from VND 7-9 million / month. The 2-3-bedroom apartments in Ham Nghi and My Dinh areas have remained the same at VND 8-11 million / month in the last 2 years.
Mr. Nguyen Van Thach, a broker specializing in apartment segment, said the reason for the rent of apartments in these areas has been on a standstill, even slightly reduced by the abundant and continuous supply in these areas. It keeps increasing year by year. The rental market is fiercely competitive, with more and more tenants making it difficult for them to increase their prices.Mr. Nguyen Van Thach, a broker specializing in apartment segment, said the reason for the rent of apartments in these areas has been on a standstill, even slightly reduced by the abundant and continuous supply in these areas. It keeps increasing year by year. The rental market is fiercely competitive, with more and more tenants making it difficult for them to increase their prices.
Central apartments for rent increase price
While the rents of suburban apartments stood still or decreased slightly, according to the survey, many high-class condominiums located in the central area of Hanoi have established a new rent level from the beginning of 2019. Levels increasing popularity ranged from 5-10%, concentrated in the districts of Ba Dinh, Hoan Kiem and Dong Da.
Specifically, many apartments for rent in the Vinhomes Metropolis project were offered in early 2019 with prices 5-10% higher than in early 2018. Many 1-bedroom apartments in this project do not have furniture is being offered for rent at VND 18.5-19 million / month while the same period last year was VND 17-17.5 million / month. The one-bedroom units with full furniture are priced at VND 23-25 million / month while the previous price is VND 21-23 million / month.
The 2-bedroom apartment, the previous rent is 22.5-24.5 million / month, now the rent reaches 24-27 million / month. The 3-bedroom apartments, rent from 38-39 million / month to 41-42 million / month. 4-bedroom apartments, prices without much change, still fluctuate popular 50-55 million VND / month for unfurnished apartments, 65-67 million VND / month for full furniture.
Another apartment building in Ba Dinh, D2 Giang Vo, also witnessed an increase in prices at the beginning of 2019. 2-bedroom, 2-bathroom, fully furnished apartments in this project have increased from 11-13 million VND / month to 13-15 million VND / month. Apartments in The Lancaster project – 20 Nui Truc, with 2 bedrooms full of furniture, the price also increased from VND 20-21 million / month to VND 22-23 million / month.
In Dong Da district, the price increase also belongs to a number of high-end projects with prime locations. Quite a number of high-class apartments under Hoang Cau Skyline project with full interiors have increased the price from 13-14 million VND / month to 14.5-16 million VND / month. Apartment with 2 bedrooms fully furnished in Hong Kong Tower, the rent increased from 14-15 million VND / month to 15-16 million VND / month. Sky City apartment price increases from 13-14 million VND / month to 15-15.5 million VND / month.
Nguyen Quoc Khanh, an apartment broker, said that it is not difficult to realize that the rising rental projects are in the high-end segment with many utilities and services, with prime locations in the central area. New supply of the high-end segment in the city’s golden plots is trickling due to the depleting central land bank. Scarcity of supply caused rents to increase over the years.
In addition, according to Mr. Thang, the increase in rented apartments is also characterized by the large number of expatriates seeking for hire. “The more foreigners have a project, the higher the rent and the selling price will be,” Mr. Thang emphasized.