Near Tet, landlords struggle to find tenants

Landlord for rent is unsold

Ms. Nguyen Thi Hien posted information about renting an apartment in Cau Giay district ( Hanoi ) since December last year, but until now, she has not found a tenant. The old tenant returned the apartment right before Tet, making it difficult to find a new tenant. Ms. Hien said that she posted the apartment for rent on many real estate websites but almost no one asked to rent it.

This has affected Ms. Hien's monthly income. Not to mention, even though she cannot rent out the apartment, Ms. Hien still has to pay monthly service fees.

Many landlords and landlords admit that it is very difficult to find tenants near Tet.

Regarding this phenomenon, some real estate brokers said the main reason is low demand for store space when business is difficult. Meanwhile, a large amount of real estate that cannot be sold at the expected price is being transferred to rent, both for the owner to earn more cash flow and to hold out until the end of the year to continue looking for buyers after Tet.

Cận Tết, chủ nhà chật vật tìm khách thuê - 1 — A house on Ba Trieu Street (Hanoi) has a sign for rent (Illustration: Ha Phong).

A recent real estate market report from a unit shows that the number of real estate rental listings on the entire site increased by 21% compared to the previous month and 2% compared to the same period last year. The product with the most rental listings last month was boarding houses with an increase of 58% compared to the previous month.

In contrast to rental demand, real estate rental demand has not improved, continuing to decrease by 6% compared to the previous month and 14% compared to the same period in 2022. The trend of decreasing rental demand is strong in all types of apartments, private houses, townhouses and shops with a decrease of 5-14% compared to the previous month.

Notably, in Hanoi, the demand for real estate rental increased as the number of listings for this segment increased by 7%. However, the demand for rental decreased by another 2%. The rental trend decreased sharply in almost all types, with rentals for townhouses in Hanoi decreasing by 18%, rentals for apartments in Hanoi decreasing by 8%, boarding houses decreasing by 15% and offices decreasing by 11%.

Waiting for recovery after Tet

According to many real estate experts, the real estate rental market is expected to face many difficulties this year as the economy is facing challenges and real estate still needs a long time to recover. However, the difficulties will gradually decrease over the months, with growth returning in types that meet the rental needs of the majority such as apartments and townhouses.

Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn - said that apartments for rent and boarding houses will continue to operate stably because the demand for these two types is still very large.

For apartments, projects located near the center, with rental prices of 7-15 million VND/month will still have stable tenants. As for the type of boarding houses and rooms in the central area, the rental demand is always very high for both office workers, young workers and students.

In suburban areas, rental rooms near industrial parks will still be well-rented thanks to the return of workers after the Tet holiday. Meanwhile, rental areas near universities will still be a popular destination for students.

Cận Tết, chủ nhà chật vật tìm khách thuê - 2 — A row of townhouses with for rent signs in Ha Dong district, Hanoi (Photo: Ha Phong).

Mr. Tuan commented that the demand for rental housing will increase after Tet but the rental price may not fluctuate much. There may be a slight increase in rental prices in some types but not too high. Particularly for the segment of townhouses and shops for rent, prices may be stable in the first months of the year due to the difficult economic situation.

Ms. Trinh Thi Kim Lien, Sales Director of Dat Xanh Services, said that in 2023, there will be a shift in consumer behavior, from buying to renting in the context of an unrecovered economy, scarce housing supply, and high prices. This shift increases the demand for rental housing.

However, there is still differentiation in rental housing types. Low-end housing and worker housing are quite vacant and difficult to rent, while mid-range and above rental apartments maintain a good absorption rate. "The closer the housing is to the center, office areas, schools, supermarkets, the more attention it receives and the higher the rental price," Ms. Lien commented.

Source