Keeping an optimistic outlook on serviced apartments in Hanoi

Serviced apartment developers in Hanoi are optimistic, because they expect the market to go up in the medium and long term.

Optimisticly waiting for the epidemic to pass

Although the market recorded a decline in rental capacity and rents due to Covid-19, foreign serviced apartment developers still promoted to put the project into operation in the fourth quarter of 2020. Difficulties during Covid-19 caused the average occupancy rate of serviced apartments in Hanoi in the fourth quarter of 2020 to only reach 67%, down 2 percentage points, while the average rent in this segment reached $25/m2. /month, down 5% from the previous year, according to data of Savills Vietnam.



Vietnam benefits from the trend of shifting global supply chains, so the serviced apartment market will develop more actively, especially in the second half of 2021.

Talking to a reporter of Investment Newspaper, Ms. Mija Park, Managing Director of The Five Residences Hanoi said, The Five Residences Hanoi project officially opened on October 10, 2020, has an important meaning in the world. many aspects. The project not only marks the entry of ONYX Group (Thailand) into the Vietnamese market, but also the first business establishment under the Saffron Collection brand newly built by ONYX, and paved the way for new projects. leading real estate in the Asia-Pacific region.

“With 116 elegantly decorated, full-service apartments, with panoramic city views, The Five Residences targets short-term tourists and foreign experts working and staying long-term in Hanoi,” Ms. Mija Park said.

A representative of The Five Residences Hanoi said that the operation of the serviced apartment market is closely related to FDI inflows. Restrictions on movement and return of many foreigners have a negative impact on short-term and long-term demand.

“With the serviced apartment market, due to Covid-19, many foreigners cannot return to work in Vietnam, so many luxury apartments for rent by foreigners are in a difficult situation. In the coming time, the Government needs to have solutions to create conditions for foreign experts to return to Vietnam to work and this is also a positive way to rescue the hotel industry in general and serviced apartments in particular.” , recommended by Ms. Mija Park.



Managing in the epidemic

Christophe Pairaud, General Manager of Novotel Hanoi Thai Ha Hotel and Novotel Suites Hanoi, said that due to the impact of Covid-19, the rental housing real estate segment faced many challenges, but in the medium term there are still resilience is higher than other segments.

Vietnam has excelled in controlling Covid-19 and has been recognized by the international community. The epidemic also shows that the economy's resilience to the crisis is quite good, so Vietnam becomes a more attractive investment location after Covid-19. The proof is that foreign investors are focusing on diversifying the market to spread risks and Vietnam is one of the preferred partners for the supply chain of large investors.

“In the context of complicated developments in the world, the real estate market in the first half of 2021 is still affected. The hotel industry is facing challenges, but investors are reaching out and planning their next steps,” said Christophe Pairaud.

Launched in early November 2020 with 343 hotel rooms, including 102 apartments from 1 - 2 bedrooms, Novotel Hanoi Thai Ha strictly takes steps to ensure safety so that the hotel is the first choice. of guests staying, especially in the serviced apartment segment.

Novotel Hanoi representative Thai Ha assessed: “Vietnam has advantages and benefits from the trend of shifting global supply chains, so I believe the Vietnamese market in general and the serviced apartment market in particular. There will be more positive developments, especially in the second half of 2021.”

“We always follow the needs of the market, grasp the slightest movement and change of the market to have appropriate directions. So the key factor that I want to emphasize is the willingness to adapt and change in all circumstances,” emphasized Christophe Peraud.



As noted by Colliers International Vietnam, the serviced apartment market in Hanoi is recovering slightly when the epidemic is under control. Many serviced apartments in Hanoi are unable to open due to continuously falling rents, but a new project like Hanoi Aqua Central is still completed and offers 238 serviced apartments is a remarkable sign.

According to Colliers International experts, despite the decline in both occupancy and rent, the serviced apartment market in Hanoi still has high potential for development. In 2021, when business activities return to normal, the serviced apartment market is expected to welcome more tenants.

Source: Investment Newspaper

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