HCMC – Hanoi City’s serviced apartment segment has caught more tenants’ attention as many people have a tendency to rent apartments in close proximity to the city center.
Serviced apartment recorded a rise in both average occupancy rate and rent, according to Savills. The average occupancy rate of the overall market rose 5.7 percentage points to 82% while average rent stayed at VND602,000 per square meter, up 3.2% quarter-on-quarter.
Savills projected that five serviced apartment projects with 637 units will come on the market by the third quarter. In addition, some 20 projects will supply the market with 1,440 units next year.
However, the rising supply in serviced apartments will put more competitive pressure on existing condos in the downtown area.
There will be few large-scale apartment projects entering the market in the quarters ahead while many small-scale apartment projects of less than 10 units each will be launched in order to meet rising demand, according to the latest report by Knight Frank. These are privately owned buildings with affordable rents.
More and more people prefer leasing condos than purchasing private-owned apartments. Previously, Minister of Construction Trinh Dinh Dung stated that developing apartments for lease is a must to restructure the ailing real estate market.
Such a move will help property market balance between leasing and buying, said a source from a property firm.
Source: The Saigon Times