Ha Noi: Tay Ho occupies the "largest serviced apartment supply market" in Ba Dinh district?

In the context of new projects scheduled to be launched in the period 2018 - 2020 will be located in two districts of Tay Ho and Cau Giay, CBRE Vietnam said that in the future, with large new apartment market, Tay Ho District will replace Ba Dinh became the largest source of supply.

Ha Noi: Tay Ho occupies the "largest serviced apartment supply market" in Ba Dinh district?

According to CBRE Vietnam, after the Dream Apart - Hotel opens in late 2016, Hanoi's first serviced apartment market in 2017 is relatively quiet, with no new projects launching. Total supply remained at 3,300 units, of which Ba Dinh and Tay Ho provided nearly 60% of the units. Grade A occupies 70% of the supply. Of the A-rated properties, up to 50% are located in the West Lake District, which suggests that investors are paying close attention to the area.
CBRE Vietnam said that asking prices of serviced apartments this quarter are relatively stable, up 0.7% over the previous quarter but down 0.3% year on year. Grade A rents were $ 31.84 per square meter, up 1 percent on a quarterly basis and 1.3 percent on a year-on-year basis. Meanwhile, Grade B rents fell slightly by 0.2% quarter-on-quarter.


CBRE explained that due to high demand, Tay Ho district has the highest average market price, followed by Cau Giay, Ba Dinh and Tu Liem. In I / 2017, fill rates are improved in all grades. Specifically, Grade A occupancy increased by 3.1 percentage points while Grade B increased by 2.3 percentage points quarter-on-quarter.
Two projects will enter the market located in the West Lake and Cau Giay area in the coming quarters. New projects scheduled for 2018-2020 will also be located in these two districts. With the new large apartment market, Tay Ho District will replace Ba Dinh as the largest source of supply in the market.
Despite positive signs, however, CBRE Vietnam is concerned that the serviced apartment market will face continuous pressure from the rental and apartment model.


"In the past, due to supply constraints and the lack of services and facilities, traditional apartments were not seen as competitors in the serviced apartment segment. However, the new high-end projects launched in the past has changed the face of the market. With a high quality of construction and management, convenient location and full facilities, the traditional rental apartment model is better advertised for around $ 10 / m2 / month. Meanwhile, the rent of serviced apartments in Hanoi usually falls to about $ 24 - $ 34 / m2 / month depending on the class, "said Marc Townsend, CEO CBRE
Marc Townsend adds that the supply of serviced offices is still concentrated in certain areas without the widespread nature of traditional apartments, while condominiums for sale and rent are increasingly gaining in popularity. Interest from home buyers as well as foreigners in Hanoi - the main object of the serviced apartment. Therefore, the model of apartments for sale and rents is expected to develop further in the coming years.