Apartment buildings in Hanoi. Illustrative photo
In April 2025, Tran Ngoc Nam from Haiphong City rented a 65-square-metre apartment in Nam Tu Liem District for VND 12 million (approximately USD 470) per month under a six-month contract, plus service fees of VND 18,000 per square metre. When his lease expired in September, the landlord raised the rent to VND 14 million (approximately USD 550), citing higher housing demand.
“Rent now takes up 50 per cent of my income. With prices rising like this, it is hard to keep living in Hanoi,” Nam said.
Young couples and office workers also face mounting pressure. Minh Hoa, who recently got married, said she and her husband struggled to find a suitable studio or one-bedroom apartment within their budget. “Studios in Chua Lang or Cau Giay streets now go for VND 4-7 million per month. Even small apartments are above VND 5 million. With limited income, it is tough to cover both rent and daily expenses,” she said.
Surveys show sharp increases across the city. One-bedroom units of approximately 40 square metres rent for VND 5.6-6.5 million in Pham Van Dong and Duong Quang Ham, while studio apartments in Khuong Dinh and Khuong Ha range from VND 4.5 to 5.6 million. Fully furnished units with fire safety systems are generally priced between VND 4 million and VND 6.5 million.
Commercial rents in central districts have also inched up, reflecting broader market pressures.
Why rents are climbing
Nguyen Van Dinh, chairman of the Vietnam Association of Realtors, said rising apartment sales prices are pushing rental prices higher, with average rents up 10-20 per cent in 2024. In central Hanoi, most one-bedroom apartments rent for VND 10-15 million per month, while two-bedroom units cost VND 15-20 million per month. In suburban areas, average rents have doubled over the past five years, ranging from VND 6.5 to 15 million.
Pham Thi Mien, deputy director of the Vietnam Real Estate Research Institute, stated that demand growth, combined with soaring purchase prices, has compelled landlords to raise rents to offset investment costs. However, rental yields remain low compared to housing price growth, often below 4 per cent and, in some projects, under 2 per cent, which is lower than bank deposit rates.
Experts also note shifting lifestyles among younger people. Many prefer renting for flexibility, enabling them to change homes based on jobs, lifestyle, or access to better amenities.
For middle and low-income workers, however, the rising rents mean housing costs can consume 35-50 per cent of their monthly income, leaving little room for savings. Many are forced to compromise by moving farther from city centres or choosing lower-quality housing to remain in major urban areas.
