HCMC rents surge 20% in 10 months

This is the biggest increase in the last two years, according to property listing platform Nha Tot, which excludes data of sleep boxes and cage homes.

By last month average rents were VND3.8 million, with some properties commanding as much as VND6.6 million.

Price hikes were seen in most districts, from downtown areas to the suburbs.

Despite steep hikes, demand for rooms and apartments in HCMC remained high.

Inquiries for these types of accommodations in HCMC in the third quarter went up between 16% and 60% compared to the previous quarter.

Houses for rents in District 5, Ho Chi Minh City. Photo by VnExpress/Phuong Uyen

The highest demand was recorded in Thu Duc City where many universities are located.

Another property listing platform, Batdongsan, confirmed the trend with a 38% year-on-year increase in inquiries for rooms in HCMC in October.

CEO of Nha Tot, Nguyen Hoang Uyen, attributed the price hikes to limited supply.

In District 7, for example, demand has surged 59% but no new supply has been recorded, she added.

Many students have to compete to find a room near their university with limited budget, she said.

"The hike is a major cause of concern for students, especially those coming from other localities."

Dinh Minh Tuan, director of Batdongsan’s southern business, said that as property prices jump in recent years, many homebuyers have given up their plans to buy and instead pay monthly rents, which increase the rates for rooms.

Authorities have also been tightening fire safety regulations which require landlords make property upgrades.

The average income of a Vietnamese worker in the first six months was VND7.5 million per month, up 7.4% year-on-year, according to the General Statistics Office.

This means an average worker in HCMC would need to spend half of his or her income on rents alone.