COVID-hit rental property market begins to heat up

VIETNAM, April 1 –

The rental property market is improving alongside the reopening of economic activities. — Stock Photo

HÀ NỘI — The COVID-19-hit rental property market is rebounding from its hibernation as the nationwide successful vaccination campaign allowed economic activities to reopen, driving up demand.

The market has seen an increase in listings and searches for rental properties in recent months.

For more than two years, the rental market has fallen into hibernation due to the impacts of the COVID-19 pandemic with social distancing measures put in place to combat the spread of the virus.

However, from the beginning of this year, the successful vaccination campaign allowed the reopening of economic activities with people returning to work, shops and restaurants reopened and the roads became congested again.

Ngô Mạnh, a broker in Hà Nội, said there was a significant increase in the number of searches for spaces to open restaurants, cafes, pharmacies, supermarkets, shops and bank branches, especially in town centers.

A recent report from the real estate portal showed that searches for office space for rent in HCM City were up 32% in February from the previous month, apartments by 53%, private homes by more than 80% and townhouses by around 32%.

Rents remained low but started to rise, according to the report.

Notably, searches for cheap rooms to rent in the southern city jumped 142%

In Hà Nội, searches for rooms to rent increased by 237%, private houses by 77%, apartments by 73% and offices by 17%.

Trần Khánh Quang, a real estate expert, said that when the economy recovers, the rental property market will also rebound. He forecast the rental market to be robust from the second quarter of this year.

According to David Jackson, CEO of Colliers International in Việt Nam, along with the economic recovery, rental demand was increasing. Many landlords were still offering average discounts of 10-15% compared to the pre-pandemic period, he said, stressing that it was time to look for rental properties because rents were still relatively cheap and there there were now a number of choices.

If the pandemic remained under control and did not cause significant negative impacts, the rental market would rebound to pre-pandemic levels within a few months, he said.

Regarding the rental departments segment, Mattew Powell, director of Savills Hanoi, predicted an improvement in the rental housing market as the country reopens international flights, increasing the demand for rental accommodation from foreigners.

This segment was also on a positive trend, as the flow of foreign direct investment (FDI) to Việt Nam increased significantly in the first quarter of this year, which means that more foreigners will come to work in Việt Nam, he said. -he declares.

The latest updates from the General Bureau of Statistics showed that FDI disbursed totaled $4.42 billion in the first three months of this year, up 7.8% from the same period last year. last.

The rental office segment was also robust.

According to Knight Frank Việt Nam, commercial real estate in Ho Chi Minh City was recovering strongly to pre-pandemic levels, with an occupancy rate of over 90%.

The real estate asset management company expects rents to rise 15-20% by the end of 2023.

Vietnam’s economy grew 5.03 percent in the first quarter of this year compared to the same period last year. The government has set itself the target of achieving a GDP growth rate of 6.5% for the year as a whole. —VNS