With tens of thousands of rental apartments in Hanoi suspended for failing to meet fire safety standards, rental prices are soaring.
| A house in Thanh Xuan District, divided into many small dwellings inside. Photo: Pham Hung/The Hanoi Times |
Market prices have increased by 12-15% since the end of 2023, according to Dinh Minh Tuan, regional director of property research website batdongsan.com.vn.
Demand for rental homes in big cities is always high, he told Lao dong newspaper.
Tuan said the rising rental prices are due to the fact that nearly 16,500 rental houses are now banned because landlords fail to meet fire safety standards.
They have to make fire safety improvements to their homes, and that costs them some money and time, Tuan said, adding that eventually they have to raise prices to cover the fire safety costs.
As the new academic year approaches, more students are moving to Hanoi and looking for accommodation. Monthly rental prices for a 15-20m2 apartment have jumped by VND300,000-500,000 (US$11.83-19.72) per month, and prices for a fully furnished place of more than 25m2 have risen by VND500,000-VND1 million (US$19.72-39.43).
Such increases have pushed rental prices in Hanoi to a range of VND2.8-4.5 million ($110.41-177.44) per month.
Thuy Minh, a second-year student at the Academy of Journalism and Communication, said her landlord raised the fee to VND500,000 ($19.72) per month in early July.
The landlord told Minh that the increase was to cover the cost of installing fire alarms and firefighting equipment.
It now costs Minh about VND3.5 million ($138) a month to live in the apartment. She has to find someone to share the cost.
Nguyen Thi Huong, who lives in Cau Giay District, said the rent went up by VND500,000 ($19.72) to VND4 million ($157.73) a month after the owner built an emergency staircase.
Huong is looking for a new place with a lower rate. She wants to transfer her contract to someone else.
Meanwhile, Hai Linh, a second-year student at Hanoi Electric University, told The Hanoi Times that she had moved to her friend's house after her accommodation in Cau Giay district was closed a month ago.
"I haven't been able to find a new flat for a month. So my friend has been letting me stay with her since then. I think it is very difficult to find a new house now because of the lack of supplies," she said.
Le Cuong said he had invested tens of millions of dong to build emergency exits and smart fire alarms for his rental houses in Thanh Xuan, Hoang Mai, and Cau Giay districts.
He said the rate hikes are reasonable and fair because landowners like him have to make up for the investment in fire safety.
To meet the demand for accommodation, especially from first-year students, landlords in Hanoi have gone to great lengths to add safety features to their properties.
In My Dinh ward, Nam Tu Liem district, homeowner Kim Oanh has invested hundreds of millions of dong in fire extinguishers and emergency exits for her tenement building.
"We now have ladders so we can easily move to a safer place in case of fire. On the ground floor, where the garage is, we have several fire extinguishers and other tools," she told Dan Viet newspaper.
"I have received some rental offers from the students and they are all looking for fire safety standards. So I and other landlords have upgraded our buildings," she said.
Hong Ngoc, the owner of a four-storey tenement building in Cau Giay District, said she had installed a large fire extinguisher on each floor and breakable windows for each room.
"On the top floor, I've had an emergency exit made with long enough rope ladders in case of danger," she said.
Vu Hong Thi, owner of a small apartment in Thinh Quang Ward, Dong Da District, told The Hanoi Times that her tenants had asked for permission to build an emergency exit and install rope ladders in anticipation of potential fire hazards.
"I think it's a good idea. Tenants should look after themselves first, rather than waiting for the landlord to take action," she said.
The local authorities have also been working to disseminate the city government's policy on firefighting and fire prevention. These include providing a second emergency exit in addition to the main entrance and equipping buildings with enough emergency kits to respond quickly to a fire.
The fire escape must be installed to ensure evacuation. Landowners are strongly advised to seek advice from professional agencies and companies when developing their emergency plans.
Mai Hong Son, who sells fire safety equipment in Ha Dong District, said he had supplied 10 projects since the beginning of July. His colleague in Thanh Xuan district, Hoang Thien, said sales have risen significantly in the past three months.
