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Luxury apartment rental prices have surged significantly over the past several months, with real estate professionals forecasting continued increases ahead.
Ho Chi Minh City’s apartment rental market has experienced remarkable momentum over the past four months, with rental prices climbing substantially. Year-over-year, rates have risen between 10-25%.
On Diamond Island, District 2, for instance, apartment rental prices have increased from 14 million VND to 16 million VND per month compared to last year. Select units in the Brilliant building now command rates of approximately $1,200 per month.
>>> You may be interested in: Why is Diamond Island the most livable apartment complex in Saigon?
According to real estate professionals, current prices represent only the beginning. Further increases are anticipated due to limited supply and rising material costs.
Regarding the recent rental price increases, Mr. Ngo Quan, a developer of numerous rental apartments in Ho Chi Minh City, noted that rental investors faced considerable challenges during the pandemic years. Through early 2022, he struggled to fill vacancies despite offering substantial discounts. Only in the past two to three months has the rental market shown meaningful recovery.
During the peak of the Covid-19 outbreak and subsequent lockdowns, vacancy rates were particularly severe. “Even with significant price reductions, I still carried the cost of keeping units empty, with approximately 70% of my portfolio vacant,” he explained.
During this period, he depleted his reserves and borrowed funds to offset losses. Following the pandemic, he invested substantially in upgrading and renovating rental units. Consequently, new leases reflect an increase of 5-10% monthly compared to pre-pandemic rates. Despite higher pricing, he reports achieving 100% occupancy.
On the drivers behind rising rental prices, Associate Professor Dr. Dinh Trong Thinh, an economic expert, identified one key factor: as property values appreciate, rental rates naturally follow.
Additionally, demand for accommodation that incorporates amenities and lifestyle services has increased significantly—amenities that standard townhouse rentals typically cannot provide.
Finally, the return and influx of expatriates and skilled professionals to Vietnam has generated a marked surge in demand for luxury apartment rentals.
