A serviced studio apartment in HCM City. Rental prices for serviced apartments in Việt Nam’s largest city witnessed a hike of up to 8 per cent in 2023. — VNS Photo Bồ Xuân Hiệp

Rental prices for serviced apartments in HCM City and Hà Nội saw an increase of up to 8 per cent last year, according to a real estate market report.

According to the report by Savills Vietnam, in HCM City, the highest increase of 8 per cent was seen in grade C apartments, while grade B rents rose by 5 per cent and grade A rents by 3 per cent.

The average rent across all grades in the city was VNĐ516,000 (US$21) per square metre per month, representing a 3 per cent increase. However, this was still 11 per cent lower than rents in 2019.

The occupancy rate in HCM City was 82 per cent, up 6 per cent year-on-year.

Meanwhile, in Hà Nội, the average rent per sqm was VNĐ580,000 ($23.65), up 1 per cent, with an occupancy rate of 83 per cent.

Experts attributed the increased demand for serviced apartments to the increasing number of foreign experts in the country’s two major cities, with HCM City attracting the highest foreign investment last year.

Despite the growing rents and occupancy rates, the supply of serviced apartments is expected to remain low.

HCM City is expected to add only 600 units at nine projects by 2025, while Hà Nội is expected to add 450 units, mostly in grades A and B, with Tây Hồ District accounting for 63 per cent of them.

As the economy continues to recover, demand for accommodation is expected to increase steadily, especially in locations near industrial parks, city gateways, and areas with good transport infrastructure, experts noted. — VNS