With the population density ranked second only after Ho Chi Minh City, demand for cheap apartments in Hanoi is always hot topic. But in 2017, as more and more people are living in Hanoi rental prices are rising, the supply appears to be relatively scarce, especially in the high end segment.
Apartment supply is lacking
It’s difficult to deny that the face of Hanoi capital has changed significantly due to the appearance of many apartment buildings. Currently the real estate market apartment is happening quite exciting, attracting strong attention of investors and customers, especially cheap apartments.
According to HoREA, the current population of the city has reached nearly 13 million people, of which nearly three million immigrants, accounting for about 23% of the population; more than 400,000 students; Every year more than 50,000 new couples are married. Out of the total of over 402,000 workers, 70.6% of those working in export processing and industrial zones in the city have no housing.
In the segment of affordable housing, the supply is almost very low although the number of customers wanting to rent apartments in Hanoi cheaply is always high. This can be explained by the fact that Vietnamese real estate companies are not interested in cheap housing projects, and in the market, despite the cheap housing, the landlord does not want to rent with the good price.
In 2017, cheap apartments in Hanoi has hundreds of medium-scale projects that have been started and completed, resulting in a significant increase in the supply of condominiums. But the increase in supply is still not able to meet the demand for housing of households, especially businesses renting offices. Today, even students – customer counterparts, who previously rented only cheap rooms, now also rent apartments when living in Hanoi.
Regarding the high-end segment, the majority of customers are foreigners living in Vietnam (most of which are in the West Lake area). The reason is that the projects around the West Lake are limited in height, the vacant lot is not much to be able to start new projects. Moreover, with the rate of rent apartments in Hanoi varying from $2,000 to $7,000 per month, tenant apartments are quite demanding in terms of space as well as the utility of living space, which not all homeowners can meet.
Why do so many people rent apartments in Hanoi?
We will not talk about foreigners living and working in Vietnam, because their demand for housing is an indispensable requirement for a “prosperous” job. So let’s talk about the Vietnamese, why renting apartments in Hanoi so many?
Experts say low-cost housing projects will meet the housing needs of many low-income and middle-income people. Although Hanoi always deploys hundreds of apartment projects, it seems that apartment apartments are quite scarce. It can be seen that the supply of apartments in Hanoi is very low despite the demand. Apartments for living and working are increasing day by day.
Many people do not have enough money to buy a house
This is probably the most common cause of renters. Currently, housing prices in Vietnam are too high compared to people’s income. Many people who have contributed to their lives can not buy a 600-800m-VND apartment. So they want to have a place to live, to work, they have to rent apartments in Hanoi if they want to remain living in Hanoi.
Many people who have contributed to their lives can not buy a 600-800m-VND apartment
Small and medium enterprises account for 98% of Vietnamese enterprises, and for service businesses, it is not necessary to rent a factory but only one representative office – then rent a condominium. Cheap will save them money. Now that we do not have to be in a new office building with a company, we can easily get to many of the businesses in our low-cost, middle to high-end apartments.
With housing prices so high today, many people think that Vietnamese people should convert ideas from buying houses to rent apartments to save costs. Although this view has mixed opinions, supporters, opponents but it is very popular in many developed countries in the world.
Thang Tran – Mogi.vn
