HCMC serviced apartment market recovering

As of early September the fill rates at serviced apartments in districts 1, 3, Phu Nhuan, and Binh Thanh surged 70-80%, up from 30-40% in 2020 and 20% in the second quarter of 2021, when Covid-19 peaked in the city.

Rents have risen to VND14-18 million ($600-770) a month.

Most serviced apartments in the central areas measure 35-55 sqm, and come with furniture, amenities and room service.

A report by property consultancy Savills said rents are recovering and the fill rate has jumped to 74%.

Nguyen Hong Hai, chairman of property rental firm VNO Group, said the occupancy rate at its serviced apartments is around 80%.

Recovery has been driven by the return of international businesses and tourists to HCMC, but there is room for further growth, he said.

Le Quoc Kien, owner of nine property projects and consultant to 10 others, said the VND15-million serviced apartment is a niche segment that mainly serves expats.

The segment also faces fierce competition from rental apartments, which cost less and are in abundant supply, he added.

Serviced apartments cost 40% more than regular apartments for lease, Vo Thi Khanh Trang, associate director of Savills in Ho Chi Minh City, said.