Vietnam: Rates for Hanoi serviced apartments have reached a three-year low.
According to Savills Vietnam, average rates fell three per cent for Q4 2021 to VND547,000 (US$24.16) per square metre per month.
Compared to the previous year, average rent has decreased by four per cent to VND705,000 and by 11 per cent to VND233,000 for grades A and C apartments respectively.
Occupancy has increased by two per cent year-on-year. The Nam Tu Liem district is highest with 83 per cent occupancy, Hai Ba Trung at 79 per cent, and Long Bien at 78 per cent. Ten grade A and B projects for Hanoi have reported occupancies of more than 90 per cent.
Savills says that due to Covid-19, there are higher demands from tenants for living spaces, such as a good healthcare system, air quality, and green spaces. Tenants now prefer branded serviced apartments that collaborate with epidemiologists to improve safety quality and healthcare.
Developers are opting for smaller units, with studio and one-bedroom apartments covering 49 per cent of the market. Two- and three-bedroom apartments account for 35 per cent and 14 per cent respectively.
The four newest projects for Hanoi this year contain smaller units with an area size of 15 to 56 square metres, accounting for about 65 per cent of the project. Revenue from these smaller apartments are four to 15 per cent higher than larger units.
Smaller serviced apartments, studios and one-bedrooms, are becoming much more flexible for tenants, offering services such as dual keys and options of long-term and short-term leases.
