New high-end apartment developments in Thu Thiem new urban area (Photo: VNA)

HCM City - Apartment rents in Ho Chi Minh City have surged by up to 28 per cent since last year, especially in the mid-priced and high-end segments.

Pham Viet Tuc, a house broker in District 4, told Viet Nam News that rentals in high-end apartment projects in prime locations have risen by up to 28 per cent compared to last year.

According to a report by JLL, rental prices for apartments in the city increased by 1.6 per cent quarterly and 5.9 per cent annually in the first three months, averaging 10 USD per square metre per month, particularly in new high-quality developments.

The rental growth has been influenced by the stronger rent prices recorded in new high-quality offerings in the city, according to the report.

Roddy Allan, chief research officer of JLL in Asia-Pacific, said that HCM City, along with Jakarta, Bangkok, and Manila, has seen a hike in rental apartment prices among developing market groups.

“Vietnam’s largest city, HCM City, was also one of the region’s best performing markets from a residential perspective,” he said.

Limited supply has resulted in consistent price hikes in the rental segment, he said.

Only 500 apartments were put up for sale in HCM City in the first quarter, the lowest number in the past 15 years and a 17 per cent decrease from the same period last year.

The demand for high-end living standards remains strong, especially among those with high incomes willing to pay 20-30 million VND per month to rent a comfortable apartment rather than buy one, said a real estate broker.