Hanoi Climbs the Ranks in Asia's Expensive Rental Markets

According to Global Property Guide, Hanoi has secured its position as the 11th most expensive city in Asia for renting apartments. This analysis, conducted across 15 major Asian cities, highlights the competitive nature of Hanoi's rental market.

A one-bedroom apartment in Hanoi now averages $525 per month, a figure that underscores the city's growing appeal and the challenges faced by renters. Leading the list are Seoul, Singapore, and Hong Kong, with their rental markets setting the benchmark for luxury and cost.

Rising Trends and Tenant Sentiments

Recent reports, including a tenant sentiment analysis by Batdongsan, reveal a 10% increase in Hanoi's average rents last year, reaching VND19 million per month. This trend is attributed to the sharp rise in apartment prices, with some housing projects seeing a 40-50% increase in prices, as noted by Pham Duc Toan of EZ Property.

Le Tiet Cuong from Savills Hanoi points to increased demand as a key driver behind the rising rents. This demand is fueled by a shift from buying to renting among residents, a direct consequence of the escalating property prices.

Impact on Residents and the Need for Social Housing

The expansion of industrial parks in neighboring areas has exacerbated the housing demand, with supply struggling to keep pace. Le Bao Long of Batdongsan highlights the financial strain on residents, with over half of Hanoi's population spending 31-40% of their income on rent.

In response to these challenges, there's a growing call for the development of social housing. Toan advocates for subsidies on interest rates and taxes, alongside easier access to land, to stimulate private investment in social housing projects.