Steep Increase in Rental Costs Across HCMC

In a significant development, Ho Chi Minh City (HCMC) has witnessed a staggering 20% surge in rental prices over the past ten months, marking the highest increase in the last two years. According to property listing platform Nha Tot, this surge excludes data on sleep boxes and cage homes. By last month, the average rent had reached VND3.8 million, with some properties commanding as high as VND6.6 million.

The price hikes were observed across most districts, from the bustling downtown areas to the quieter suburbs. Despite these steep increases, demand for rooms and apartments in HCMC remains robust, with inquiries rising by 16% to 60% in the third quarter compared to the previous quarter.

The highest demand was recorded in Thu Duc City, home to numerous universities. Another property listing platform, Batdongsan, confirmed this trend with a 38% year-on-year increase in inquiries for rooms in HCMC in October. CEO of Nha Tot, Nguyen Hoang Uyen, attributed the price hikes to limited supply, particularly in District 7 where demand surged 59% without any new supply.

Many students are now competing fiercely to find affordable rooms near their universities, causing significant concern, especially for those coming from other localities. Dinh Minh Tuan, director of Batdongsan’s southern business, noted that as property prices have jumped in recent years, many potential homebuyers have opted to rent instead, further driving up rental rates. Additionally, authorities have been tightening fire safety regulations, requiring landlords to make property upgrades, which also contributes to the rising costs.