Serviced Apartment Industry in Vietnam

In consequence of continuously expanded international relations, Vietnam has appealed many foreign investors to come and seek for business opportunities. This is definitely true in the cases of Hanoi and Ho Chi Minh city (HCMC) – the two biggest cities and the most effervescent business environment in the country.

Serviced apartments have many advantages that help them to appeal lessees: Well managed, full amenities and private, etc. They could provide comfortable accommodation for guests with short, medium or long stay. Renters for this kind of apartment range from well paid emloyees, expatriates, foreign experts, overseas Vietnamese, etc…

One highly appreciated strength of such kind is flexible staying duration while owners of flats for lease prefer long persistence. Another firming preponderance is that serviced apartments buildings have possibility of providing tenants with quality and suitable services at they focused on leasing objective from the very first footstep. Besides, particularly in the case that lessees are foreigners. They prefer serviced apartments to normal rent flats because tenants in serviced apartments building are often similar situations with each other. It means they could be ensured private and safe living conditions without colliding like staying in some other complicated places.

When apartments for sales are in stuck situation as being affected by economic context, regulations and laws then serviced apartments segment is still going smoothly. According to statistics figured out by analysists, there are nearly 4000 serviced apartments in HCMC and number in Hanoi is about 3000. They are in highly efficient and productive operations now at rates about 15$, 25$, 30$ per m2 per month for standard to luxury apartments (from A to C class) alternatively and most of them rent more than 80% capability.

In comparison with flat for sales, serviced apartments require medium to long term investment in a big amount thus there are a few Vietnamese investors in this segment. With proven strengths and favorable conditions, serviced apartment market still creates opportunities for both foreign and local investors.