Vietnam: After a difficult pandemic year, serviced apartment rental prices in Ho Chi Minh City have continued to drop in recent months.
Across HCMC, apartment rents have dropped substantially in the last year, with an estimated 30 per cent drop, due to Covid impacts. The drops have continued throughout the pandemic, and, in the last two months, apartment rental prices have dropped an additional 10 to 15 per cent.
Prices are low throughout the city but so is demand. Even though the supply of apartments has greatly increased, due to many tenants closing leases because of pandemic impacts, the demand has not increased, leaving vacant apartments with low prices.
Districts Two and Nine, which are both now a part of Thu Duc City, have both seen substantial price falls. In District Two, luxury apartments that used to rent for about $1,300 to $1,500 per month are now priced at $900 to $1000 per month. In District Nine, furnished two-bedroom apartments that used to be priced at $430 per month are now priced at $280 per month.
In the southern area of HCMC, prices for a 75 square metre, two-bedroom apartment fell from between $516 and $559 to between $344 to $387.
Prices have also dropped by more than 30 per cent since the pandemic began in the Binh Thanh District and District Four.
Trang Minh Ha, a consultant for North Star Asia, analysed the situation. He explained that loss of income due to the pandemic has greatly impacted the real estate market, forcing some to return their rented lodging. Recent Covid outbreaks have only worsened the situation, with many landlords lowering rent by about 10 to 20 per cent in May and June alone.
Minh Ha said that the future is unclear. Rents may continue to drop depending on the vaccination campaign and the pandemic’s continued effect on the country overall.
