Vietnam: The average rent for serviced apartments in Ho Chi Minh City has fallen to a five-year low, according to data from Savills.
The $23 per square metre per month average recorded in Q3 2020 represents a 10 per cent year-on-year fall.
Occupancy fell 19 percentage points to 65 per cent as there were few international flights entering the country. Overseas professionals are main tenants of serviced apartments.
In the first nine months, registered foreign direct investment capital in HCMC dropped 28 per cent year-on-year to just over $3 billion.
The Savills report says owners of more than 20 per cent of Grade B projects are offering discounts of up to 30 per cent for long-term tenants, or other perks such as free utilities.
The supply of serviced apartments fell seven per cent year-on-year to 6,200 units, with one Grade B project withdrawing 164 units for renovation and a 31-unit Grade C project being converted into office space.
There are 11 projects in the pipeline which are expected to boost supply by a further 1,300 units in the next four years.
