Vietnam’s woeful lack of serviced apartments
With foreign investors and tourists flocking to the country, demand is high.
Serviced apartments in Hanoi and Ho Chi Minh City reported occupancy rates of 88 percent and 80 percent in the second quarter of this year, Do Thi Thu Hang, associate director of research at real estate consultancy Savills Vietnam, said.
Though international property companies have been investing in serviced apartments in Vietnam since 1993, the number of developments in Vietnam has been very low compared to other countries, she said.
In Hanoi, there are 900 units belonging to three major international chains, or a mere 1 percent of their global holdings, she said.
The number is not enough to meet the demand from an increasing number of expats and tourists coming to Vietnam every year, she said.
Foreign firms have been setting up shop in large industrial zones in various provinces while most of the serviced apartments are in Hanoi and Ho Chi Minh City, she said.
With employees of foreign-invested businesses and other foreign companies being the main customers, “there will be even more demand for this type of apartment in future,” she said.
Foreign direct investment in Vietnam has been increasing in recent years, reaching $35.9 billion last year, the highest since 2009, according to official data.
Vietnam has been attracting an increasing number of international tourists, with 7.9 million of them arriving in the first six months, a 27 percent increase year-on-year, according to the Vietnam National Administration of Tourism.