Landlords are busy looking for tenants at the end of the year.

Supply and demand imbalance in the rental market

According to Batdongsan.com.vn's December 2023 real estate market report, the number of rental listings on this platform increased by 21% compared to the previous month and 2% compared to 2022. In particular, the most popular rental product is boarding houses with rental listings increasing by 58% compared to the previous month. Following that are types of business premises increasing by 28%, offices and apartments increasing by 7-9%.

On the contrary, the demand for real estate rentals remains quite gloomy, 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.

Real estate rental demand increases sharply during Tet holiday picture 1 — Many homeowners in Ho Chi Minh City have hung up "for rent" signs for many months but have not found any customers.

In specific markets such as Ho Chi Minh City and Hanoi , rental demand and rental demand also have opposite figures. While rental listings increased by 7% on average, rental listings decreased by 2% in almost all types. In which, types such as townhouses and boarding houses had the sharpest decrease in rental demand.

Specifically in Ho Chi Minh City, the number of apartment rental ads increased by 8.3%, rental of boarding houses and rooms increased by 67.2%, office rental increased by 3.6% and warehouse kiosk rental increased by 12.3%. The number of apartment rental searches decreased by 4%, private house rentals decreased by 13%. Street-front townhouses are a type of real estate with both the number of rental ads and rental demand decreasing in the past month. The decreases were 23% and 13%, respectively.

Real estate rental demand increases sharply during Tet holiday picture 2 — The number of rental listings increased sharply at the end of the year (Photo: Batdongsan.com.vn).

This decrease in rental demand is considered a common situation at the end of the year in the market of big cities. In addition, the difficult business situation also makes it difficult for all types of townhouses. Meanwhile, a large amount of real estate that cannot be sold at the expected price is being shifted to renting, both to earn more cash flow and to hold out until the end of the year to continue finding buyers after Tet.

Rental market expected to recover in the new year

Although it is forecasted that there will be many difficulties and challenges in the new year, many opinions believe that these difficulties will gradually decrease over the months and growth will return in types that meet the rental needs of the majority such as boarding houses, rooms for rent, apartments for rent and townhouses in some central areas with retail recovery.

According to Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the South, apartments for rent and boarding houses will continue to operate stably because the demand for these two types is still very high. For apartments, projects located near the center, with rental prices from 7-15 million VND/month will still have stable tenants. As for boarding houses and rooms in the central area, the demand for rental is always very high for both office workers, young workers and students.

Real estate rental demand increases sharply during Tet holiday picture 3 — Apartment type still maintains stable number of tenants

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

“Demand for rental housing will increase after Tet, but rental prices may not fluctuate much. There may be a slight increase in rental prices for some types of properties, but not too high. As for the townhouse and shop rental segment, prices may be stable in the first months of the year due to the difficult economic situation,” said Mr. Tuan.

Commenting on the rental market, Ms. Trinh Thi Kim Lien, Sales Director of Dat Xanh Services, said that in 2023, there will be a shift in consumer behavior, shifting 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. Housing closer to the center, office areas, schools, supermarkets, is especially interested and can be rented at a good price.

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