HCM City (VNS/VNA) - After years of steady increases, townhouse owners in HCM City have recently started reducing rentals for their properties.
Estate agents in the city have reported a decline in rental rates of 20-32% during the first two months of 2025.
According to a report from Nha Tot, an online platform providing property market data, rental rates across all districts fell by an average of up to 18% in January. District 1 and Binh Thanh district saw the most significant drops of 20-32% from the end of 2024.
Specifically, the report indicates that townhouse rents in Binh Thanh district dropped from 40 million VND (1,600 USD) at the end of the previous year to 26.8 million VND, a decline of 32%.
In district 1, rates fell by around 20% from 77 million VND to 62 million VND (2,400 USD), district 7 experienced a 13% decrease from 33 million VND (1,300 USD) to 29 million VND (1,137 USD) and the drops were 19% in Binh Tan district and 32% in Thu Duc city. Other districts recorded decreases of 7-18%.
Phu Nhuan district was the only place where rental prices did not fall. In fact, they rose slightly from 35.5 million VND (1,400 USD) to 42.2 million VND (1,700 USD), and this is attributed to the limited supply of rental townhouses in the area.
A similar trend was reported by market research firm DKRA Group in a recent update.
It noted that townhouse rental prices in HCM City have decreased compared to the period before the Lunar New Year.
Compared to the same period in 2024, rental prices in central districts have fallen by a significant 24-26%.
In district 1, they declined by 17-20% year-on-year, in district 5 by 25-30%, in district 2 by 12%, and in the Phu My Hung New City Centre in district 7 by 12%.
Historical data from online real estate platform batdongsan.com.vn also indicates that townhouse rental rates across HCM City have adjusted downwards by 5-10% in the first month of the year.
Rents for full houses in the central area decreased by 15.3% in district 1, 11.6% in district 3, 8.8% in Binh Thanh district, and 21.4% in district 11 compared to the same period last year.
Experts have attributed the downturn to weak demand.
A Nha Tot representative said rental townhouses in most districts and suburban areas of HCM City have been affected by a subtle wave of rent reductions throughout 2024.
This downward trend has occurred amid both cooling supply and demand for rental townhouses.
Towards the end of last year, the number of rental listings and tenant demand dropped by 10-30%, with a further decline of 50-65% in January.
The significant fall in demand pressured many landlords to lower prices to attract tenants. Some even temporarily withdrawn their properties from the market, opting to wait until after the Lunar New Year in the hope of securing better rental rates.
Dinh Minh Tuan, director of batdongsan.com.vn for the southern region, said last year townhouse rentals increased by an average of over 20%, with some areas seeing rises of 30-35%.
So many tenants believe that the current rental reductions are still relatively modest. To attract new tenants, many landlords have introduced more flexible policies such as offering renovation support and initial rent-free periods.
The rental townhouse market in HCM City is expected to improve this year, driven by an economic recovery and increased international tourism, which is set to boost retail activity.
Demand for rental properties in densely populated areas such as Nguyen Hue Street, Bui Vien and major shopping streets like Nguyen Trai and Cach Mang Thang 8 is showing positive signs.
Furthermore, the emergence of new brands, particularly in the F&B and retail sectors, is providing additional momentum for market recovery.
Flexible business models, such as combining retail spaces with coffee shops or multifunctional areas, are becoming increasingly popular, allowing landlords to optimise the use of their properties./.
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