Hanoi Rent Hikes Squeeze Tenants Amid Inflation Strains

File photo for reference only

In Hanoi's bustling Khuong Dinh Ward, Thuy Ngan recently faced a 10% rent increase on her modest 20-square-metre apartment, prompting a difficult decision. Her landlord raised the rent from VND3.8 million (about 6,000 Thai Baht) to VND4.2 million (6,630 Thai Baht) per month due to soaring inflation. Her additional expenses on utilities pushed her monthly bills to nearly VND5 million (7,880 Thai Baht), consuming a third of her income. As a result, Ngan opted for a cheaper apartment farther from her workplace, despite the longer commute.

Quang Huy and his wife in Cau Giay Ward faced a similar predicament when their rent was hiked by 15% to VND9 million (14,190 Thai Baht) starting next month. Their landlord cited renovations as the reason for the increase, leaving them with limited options. After weeks of hunting for alternatives, they are considering moving further out of the city.

Hanoi landlords are raising rents by 10-15%, partly due to inflation and rising property and furnishing costs, says Nguyen Tuan Anh, who manages a rental firm. The consumer price index rose by 3.24% last month, impacting household expenses like electricity and water, which saw increases of 10.8% and 3.9% respectively.

Demand for rental housing in Hanoi climbed by 11% in July from the previous month, according to property portal Batdongsan. Since March, house rents have escalated by 10-15%, particularly for small units. The surge reflects a broader trend, with cities like Hanoi and Ho Chi Minh City being magnets for job seekers. The 2023 Provincial Governance and Public Administration Performance Index reports that 22% of respondents moved to these cities for employment opportunities.

Rising property values have fuelled landlords' expectations for higher rents, exacerbating pressure on tenants. Nguyen Chi Thanh, vice chairman of the Vietnam Association of Realtors (VARS), explains that the annual September influx of students drives peak rental demand, often resulting in expired leases and further rent hikes.

However, with economic challenges persisting and wages stagnating, many are forced to downgrade their living conditions. A recent VnExpress survey found that 14% of more than 7,800 respondents are considering leaving Hanoi for lower living costs elsewhere.

Experts suggest that expanding social housing could help alleviate rent pressures. Pham Duc Toan, CEO of property developer EZ Property, recommends enhancing social housing supply with better interest rate and tax incentives, and easier land access for developers.

As Hanoi's housing market tightens, the struggle to maintain affordable living spaces remains a critical issue for the city's residents.

  Adapted by ASEAN Now from VN Express 2025-09-10