Serviced apartment market heating up

Serviced apartments in Tay Ho recorded higher occupancy rates in the 4 months of this year thanks to more significant numbers of short-term foreigners. 

A survey by bdstanlong.com indicated that 2 affordable serviced apartment buildings in Tay Ho near Noi Bai International Airport gained an occupancy rate of nearly 80%.

Leasing fees of serviced apartments in Hanoi 

More specifically, the occupancy rate for standard serviced apartments with rents of VND680,000-750,000 (US$29-32) per night was 95%.

The manager of the serviced apartment buildings said the competitive offering price compared to hotel rates has helped them retain existing tenants and draw new ones.

A company currently leasing 230 high-end serviced apartments and officetels near the Landmark 81 Tower in Binh Thanh District said the occupancy rate surged sharply in the last four months, surpassing 95%.

More specifically, the occupancy rate for standard serviced apartments with rents of VND680,000-750,000 (US$29-32) per night was 95%.

The manager of the serviced apartment buildings said the competitive offering price compared to hotel rates has helped them keep existing tenants and lure new ones.

A company currently leasing 230 high-end serviced apartments and officetels near the Landmark 81 Tower in Binh Thanh District said the occupancy rate surged sharply in the last four months, surpassing 95%.

The company’s one-bedroom serviced apartments with rents of VND1.3 million per night were fully booked on weekdays and weekends.

Its two-bedroom apartments saw an occupancy rate of nearly 90%, attracting both short-term and long-term local tenants and guests from South Korea, Japan and Taiwan.

Serviced apartments with three bedrooms or more had an occupancy rate of 80%, and large families, mainly overseas Vietnamese, mostly favored them.

The average rent of serviced apartments around the Landmark 81 Tower is now nearly double compared to the pandemic period.

The rent of one-bedroom apartments surged from VND500,000-700,000 per night in the second quarter of 2021 to VND1.2-1.3 million per night in the first months of 2023.

Since March, the occupancy rate has remained above 80%, which is profitable, he added.

Real estate consultancy Colliers Vietnam said the occupancy rate of high-end and mid-end serviced apartments in Tay Ho reached 91-92% in the first quarter of the year, partly thanks to more foreign experts coming to work in Vietnam.

Property consultancy Savills Vietnam said serviced apartments in all high-end, mid-end and affordable segments posted an average occupancy rate of 84% in the first quarter, surging 16 percentage points against the same period last year.

Most serviced apartment tenants are professionals from Japan, South Korea and Taiwan.

The average rent of serviced apartments rose by 7%. However, that’s still 10% lower than in the pre-pandemic first quarter of 2019.

David Jackson, CEO of Colliers Vietnam, said the demand for serviced apartments would continue to increase, especially in the second half of this year when more Chinese tourists are expected to visit the country.

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