A towhouse in HCM City with banner saying "House for rent". Landlords in the city have cut down rentals due to low demand. — VNA/VNS Photo Hoàng Tuyết

 

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 per cent during the first two months of 2025.

 

According to a report from Nhà Tốt, an online platform providing property market data, rental rates across all districts fell by an average of up to 18 per cent in January. Districts 1 and Bình Thạnh District saw the most significant drops of 20-32 per cent from the end of 2024.

 

Specifically, the report indicates that townhouse rents in Bình Thạnh District dropped from VNĐ40 million (US$1,600) at the end of the previous year to VNĐ26.8 million, a decline of 32 per cent.

 

In District 1, rates fell by around 20 per cent from VNĐ77 million to VNĐ62 million ($2,400), District 7 experienced a 13 per cent decrease from VNĐ33 million ($1,300) to VNĐ29 million ($1,137) and the drops were 19 per cent in Bình Tân District and 32 per cent in Thủ Đức City.

 

Other districts recorded decreases of 7-18 per cent.

 

Phú Nhuận District was the only place where rental prices did not fall. In fact, they rose slightly from VNĐ35.5 million ($1,400) to VNĐ42.2 million ($1,700), 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 per cent.

 

In District 1, they declined by 17-20 per cent year-on-year, in District 5 by 25-30 per cent, in District 2 by 12 per cent, and in the Phú Mỹ Hưng New City Centre in District 7 by 12 per cent.

 

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 per cent in the first month of the year.

 

Rents for full houses in the central area decreased by 15.3 per cent in District 1, 11.6 per cent in District 3, 8.8 per cent in Bình Thạnh District, and 21.4 per cent in District 11 compared to the same period last year.

 

Experts have attributed the downturn to weak demand.

 

A Nhà Tốt 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 per cent, with a further decline of 50-65 per cent 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.

 

Đinh Minh Tuấn, director of batdongsan.com.vn for the southern region, said last year townhouse rentals increased by an average of over 20 per cent, with some areas seeing rises of 30-35 per cent.

 

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 Nguyễn Huệ Street, Bùi Viện and major shopping streets like Nguyễn Trãi and Cách Mạng Tháng 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. — BIZHUB/ VNS

 

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