Hoang Nam and his family live in a rented 70 sq m apartment with two bedrooms in Linh Dam residential quarter in Hoang Mai district, Hanoi, for which they have to pay rent of VND7.5 million a month. However, as he has taken a new job at an office far from the current residential quarter, he is seeking a new apartment in Thanh Xuan district near the new office.

He was warned that apartment rent in Hanoi was increasing, but he could not imagine that the rent would be so high. A two-bedroom apartment, 70 sq m, at Sakura apartment block at No 47 Vu Trong Phung, is offered at VND11 million a month. If he moves into the apartment, he would have to pay VND3.5 million a month more.

Analysts said apartment rental charges in Hanoi vary, depending on construction quality and interior decoration.

A fully furnished apartment in Thanh Xuan district with two bedrooms at an apartment block at No90 Nguyen Tuan is available with rent of VND14 million a month. A two-bedroom 80sqm, also fully furnished, at Imperia Garden project has rent of VND16 million a month.

People can find a lot of ads about apartments for rent. A 3-bedroom apartment at Stella Garden on Le Van Thiem Road is offered at VND17-19 million, with two options for tenants – fully or partially furnished.

Meanwhile, the owner of a 100 sq m apartment with 3 bedrooms at The Artmis, requires VND20 million a month, promising that everything is ready and tenants just need to move in, with no need to buy anything for decoration.

The rents are lower in Hoang Mai district. At HUD-developed apartment block, the rents are VND7-8.5 million a month for 40-60 sq m apartments.

A 62 sq m, fully furnished apartment at the 897 Giai Phong building or a 70 sq m two-bedroom apartment at Eco Lakeview Dai Tu project has rent at VND11.5-12 million per month.

Meanwhile, a three-bedroom, 100 sq m apartment at Sky Central building at No 176 Dinh Cong is available at VND14.5 million a month, fully furnished.

The rentals are higher in Cau Giay district, which has become a busy commercial hub. A two-bedroom apartment, fully furnished at D’capitale TranDuyHung, is offered at VND17 million a month, while a studio apartment there is VND13 million.

A 100 sq m apartment, with three bedrooms at high-end FLC apartment block at No265 Cau Giay, is offered at VND22 million a month, which only high income earners can afford.

The rental charge is even higher, VND32 million a month, for a 200 sq m apartment at Discovery project.

The noteworthy feature of Hanoi’s apartment leasing market, according to analysts, is the sky-high rent despite oversupply

Le Kim Quyen, Director of Fullhouse Company, specializing in renting houses for both Vietnamese and foreign clients, said My Dinh, Nam Tu Liem and Cau Giay districts are the areas where many restaurants, schools, and offices are located, with many Korean residents and Vietnamese, so demand for apartments is high.

According to Quyen, Vietnamese mostly seek apartments with rental charges of VND8-15 million a month, especially those for VND8-12 million. Many just want one-bedroom apartments, with a rent of VND6-8 million. The tenants are households and young working people.

Meanwhile, foreigners, who are mostly teachers, specialists, businesspeople, and families, want high-end apartments.

Businesspeople mostly seek apartments with rent of $1,000-1,500 a month, while teachers prefer apartments with rent of $400-600. Meanwhile, families want apartments with 2-3 bedrooms, $800-1,500. Around 90 percent of foreigners only accept fully furnished apartments.

Quyen said that supply is higher than demand. Many apartments had been left idle for 3-6 months before finding tenants.

“Landlords sometimes need some good luck to find suitable clients. If they are not experienced enough, they may set overly high rents and will not be able to lease apartments for many months,” he said.

“Owners need to be flexible and quickly adaptable to market conditions and set rental prices that are appropriate for different moments. They also can seek advice from professional advisory services.

As for tenants, it would be better for them to find apartments to lease in areas near their workplaces which have good rentals, and to use consultancy services. Consultants don not charge tenants and only collect fees from landlords.

Hong Khanh