Demand for high-end apartments in HCM City and their rents have been declining rapidly in 2023. Photo tuoitre.vn

HCM CITY — While rents for affordable apartments remain steady in HCM City, they have fallen sharply and continue to do so in the case of high-end apartments.

According to a report by Colliers Việt Nam, the highest rental for a serviced apartment has decreased from US$8,125 per month (VNĐ190 million) last year to $7,500 (VNĐ175 million) now.

The same has happened in the mid-priced segment, with rents dropping from VNĐ10-15 million ($436-654) to VNĐ6-12 million ($260-523).

Nguyễn Trung Trinh, who owns a residential building on Lý Tự Trọng Street in District 1, said her tenants used to be foreigners working for international companies who were willing to pay $600 or more for a serviced apartment.

But after COVID-19 began she could not find any takers even when offered discounts of 15 per cent for six months and 30 per cent for a year.

Apartments on Lê Thánh Tôn, Hai Bà Trưng and Lý Tự Trọng, where many international companies are located, have also suffered rental drops. But despite a fall in rents from VNĐ10-15 million to VNĐ6-12 million now, and easing of lease conditions, they find it hard to attract lessees.

The chief reason is that a large number of foreign experts have not returned to work after the pandemic, especially from China.

Besides, COVID-19 has altered working habits, and professionals can now work and manage remotely and do not need to come to Việt Nam or stay for long, experts pointed out.

Since the beginning of 2020, the city’s high-end apartment leasing market has seen a drop of 30 per cent.

But demand for apartments costing up to VNĐ5 million, located mostly in outlying districts and rented by young families, has been strong. — VNS