The Shift Toward Renting Over Buying in Vietnam’s Housing Market

In Vietnam, rising property prices have left many young people with no choice but to rent, as homeownership becomes increasingly

. Over the past five years, apartment prices in major cities like Hanoi, Ho Chi Minh City, and Da Nang have by more than 70%, while average have only grown by 6-10%. With apartment prices reaching upwards of 2 billion VND, many young professionals, such as Phuong Anh, a bank employee with a monthly income of 23 million VND, are opting to rent instead of buy. This trend is further by the flexibility that renting offers, especially to younger generations who value over ownership.

Although rental prices are rising at a slower pace than property prices, the rental market in Vietnam still faces several challenges, including limited supply and lack of legal protections for

. Moreover, high rental costs in urban centers like Ho Chi Minh City and Hanoi further push individuals to seek more affordable housing options in suburban areas. As the demand for rental properties continues to grow, experts predict that new models of renting, such as long-term leasing with an option to purchase, may soon emerge to meet the evolving needs of the market.