“The Rising Cost of Rent: How Hanoi and Ho Chi Minh City Are Coping with Soaring Property Prices”

The demand for stable accommodation is always a top priority for students living away from home. This demand spikes during the back-to-school season. According to Batdongsan.com.vn, in July, the interest in rental rooms and houses in Hanoi increased by 10% compared to June. In Ho Chi Minh City, the increase was 22%. Rental prices in some areas have been on an upward trend since Q2 2024.

For instance, in Ward 9, District 5, Ho Chi Minh City, which is close to universities such as the University of Natural Sciences, the University of Pedagogy, and the University of Medicine, the average rental price in Q2 2024 was 6 million VND per month, a 50% increase compared to the same period last year.

In Hanoi, in Bach Khoa Ward, Hai Ba Trung District, an area that houses prominent universities such as Hanoi University of Science and Technology, Hanoi University of Civil Engineering, and the Vietnam National University of Economics, the average rental price in Q2 2024 was 5 million VND per month, the highest in the last four years. Rental prices in Bach Khoa Ward have increased by 25% from Q3 2020 to Q2 2024.

Some landlords in Hanoi have increased rents by 10-15%, citing rising property prices as the reason for the hike. Similarly, the rental market in Ho Chi Minh City has also witnessed a rising trend in recent months, significantly affecting the psychology and behavior of tenants.

The simultaneous increase in rental prices in areas near universities in major cities like Hanoi and Ho Chi Minh City has posed a financial challenge for tenants, especially students who largely depend on their families for financial support or young working adults with low incomes.

As a result, the psychology of this group has shifted to balance income and monthly expenses. According to a Batdongsan.com.vn survey on rental behavior in the last six months of 2024, 47% of respondents chose to rent rooms with fewer furnishings, and 51% opted for smaller spaces.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, stated that, considering the locality, tenants in Hanoi tend to accept renting rooms with less furniture, while those in Ho Chi Minh City prioritize smaller spaces to cut costs. Other chosen options include renting places with fewer amenities and sharing accommodations.

Ngoc Van, a second-year student from Long An province at a Ho Chi Minh City university, shared that after the summer vacation, she returned to the city in early August to prepare for the new academic year. However, her landlord informed her of a rent increase of 500,000 VND per month. Ngoc Van said, “My contract ends in September, and I’m looking for other rooms with fewer furnishings to move to because they are more affordable.”

Besides rental prices, according to Mr. Quoc Anh, parents and students should also pay attention to the convenience of transportation and the security of the area surrounding the rental property. Fire safety is another crucial consideration.

Mr. Quoc Anh advised tenants to check for fire escape routes and fire safety equipment in the rental property and be mindful of nearby electronic or flammable product stores to minimize potential accidents. Additionally, tenants should thoroughly inspect the rental property for hidden cameras to ensure their personal safety and privacy.

The upward trend in rental prices is expected to continue for at least the next 1-2 months as the number of students enrolling in Hanoi and Ho Chi Minh City continues to rise. This situation calls for young tenants to calculate and adjust their spending to maintain a harmonious balance between their essential needs and desires.