Occupancy in serviced apartments for rent sees hike

A Savills Vietnam report says 813 serviced apartments were rented in the third quarter for an average rent of VND521,000 ($21) per square meter per month.

Demand for long-term renting of serviced apartments, mainly among Japanese, South Korean and Taiwanese experts, increased sharply against the same period last year.

Cao Thi Thanh Huong, research manager at Savills HCMC, said the influx of foreign visitors has helped the serviced apartments for rent market gradually recover to pre-Covid-19 levels.

From now until 2025, HCMC is estimated to have an additional 840 serviced apartments for rent, and the bigger supply, along with stronger demand, will enhance competitiveness in this segment against hotels and apartments, she said.

A VnExpress study found that as of late September, many serviced apartments for rent in the city’s 1, 3, Phu Nhuan and Binh Thanh districts had occupancy rates of 75-80%,. The occupancy was as high as 85-90% in some areas.

The occupancy rates were double that of 2020 when they hovered around 30-40%, and surged 3-4 times against the peak of Covid outbreaks in the second quarter of 2021, when it dropped to around 20%. Serviced apartments rentals in many urban districts rose 6-8% year-on-year in the third quarter.

Toan, the manager of a serviced apartment project in the city’s Phu Nhuan District near the Tan Son Nhat International Airport, said Q3 demand for renting serviced apartments among Asian experts, mainly from Japan, South Korea and India, increased 20% against the previous quarter and over 30% against the same period last year.

The demand for renting serviced apartments is set to rise further in the remaining months of this year when many Asian and European technology firms hold events in HCMC, Toan predicted.