The Vietnamese capital is the 11th most expensive in Asia, according to research firm Global Property Guide, which analyzed apartment rental markets as of this month in 15 major cities on the continent.
A one-bedroom apartment in Hanoi costs an average of $525 per month.
Seoul tops the list with a one-bedroom apartment costing up to $3,500 followed by Singapore at $2,826 and Hong Kong at $2,100.
Several other research firms have also noted the rising trend in Hanoi apartment rentals.
A tenant sentiment report by property listing platform Batdongsan indicated that average rents in the capital rose 10% last year to VND19 million per month compared to HCMC’s VND14 million.
Pham Duc Toan, CEO of property developer EZ Property, said the sharp rise in apartment prices has also driven up rents in Hanoi.
Last year prices at many housing projects climbed by 40-50%, prompting landlords to raise rents too, he added.
Le Tiet Cuong, head of residential sales at property consultancy Savills Hanoi, said increased demand is contributing to rising rents.
The demand is caused by many people switching from buying to renting due to the rising prices, he explained.
The expansion of industrial parks in several neighboring provinces and cities has increased the demand for housing, but supply remains limited.
Le Bao Long, strategy director at Batdongsan, said the high rentals are forcing people to allocate a larger proportion of their income to housing.
A survey by his company found that more than half the city’s people spend 31-40% of their income on rent, while this figure is 21-30% in HCMC.
The rising rents mean adding social housing is imperative.
Toan suggested increasing the supply of social housing for both buying and lease by offering subsidies on interest rates and taxes and easing access to land, thus attracting private investment.
