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Potential types of accommodation
With the increasing number of foreign investors and businesspeople coming to Vietnam, and higher average incomes compared to previous years, the demand for comfortable accommodation is also steadily increasing. Recognizing this, many businesses have decided to invest heavily in rental apartments, leading to an abundant supply and a more vibrant market than ever before. Apartments ranging in size from 50-70 m² are the most popular and sought-after rental option.
In Vietnam's two largest cities – Hanoi and Ho Chi Minh City – there are many foreigners living and working. They are a key target group for the rental apartment market. Marc Townsend, CEO of CBRE Vietnam, commented on the rental apartment segment: "According to our research, many projects operating in Ho Chi Minh City have stable rental yields due to stable rental prices and stable capital values.”
The fully equipped serviced apartments offer a comfortable and relaxing stay for guests.
When asked about choosing between traditional hotels and serviced apartments, some foreign guests said that serviced apartments have more advantages. One guest staying at Oakwood Residence Saigon said: “Oakwood Residence Saigon is right next to SC VivoCity shopping mall and close to many other amenities, so life is more convenient and easier. The apartment is always clean with daily housekeeping service. The standards here are on par with any Oakwood apartment we’ve stayed at worldwide,” Anh Patrick shared on TripAdvisor.
Warm bedrooms with luxurious and sophisticated furnishings at Oakwood Residence Saigon.
According to Savills' report, Vietnam has nearly 100,000 foreign professionals living and working there. These include management-level staff from multinational corporations, consultants working under contract in Vietnam, employees of foreign aid projects, and non-governmental organizations. Driven by the need for spacious, upscale, yet comfortable living spaces that ensure privacy, serviced apartments are gaining increasing popularity among expatriates.
According to Savills, from 2017 to 2020, especially in the last months of the year, the number of foreign experts from large companies and corporations coming to work on projects in Vietnam increased sharply. This is considered the "golden period" for the serviced apartment rental market. Accordingly, investors began to accelerate development and showed more favoritism towards this type of apartment.
The well-designed and comfortable interiors of the serviced apartments give guests the feeling of being in their own home.
The serviced apartment market is booming.
As of 2019, the estimated supply of serviced apartments could reach 2,650 units. Many serviced apartments have been launched catering to diverse segments, but generally aim to meet the desire of most expatriates for comfortable, safe, and private accommodation. Prices for serviced apartments vary considerably, but generally range from $900 to $5000 USD.
One of the most reputable and well-established serviced apartment management companies is The Ascott Limited, the world's largest serviced apartment management and operation group. Currently, The Ascott Limited manages 4,500 apartments across 22 projects in 7 provinces and cities in Vietnam under three well-known brands: Somerset, Ascott, and Citadines. Ascott Limited's serviced apartments consistently achieve occupancy rates of 80% or higher, including both short-term and long-term guests.
Oakwood Residence Saigon serviced apartments are located in District 7, an area with many unique features but also offering privacy and security.
In terms of location, District 1, District 3, and District 7 are always "hot spots" attracting many serviced apartment projects because they are close to the city center and major roads, making transportation easier. Regarding advantageous location, Oakwood Residence Saigon, located in District 7, is frequently mentioned due to its outstanding advantages. Managed by Oakwood Asia Pacific Ltd, a leading brand in the serviced apartment sector with numerous international awards and a strong reputation built on 39 projects across 21 cities in Asia.
Specifically, the SILA Urban Living serviced apartment won the Vietnam Real Estate Award 2015 in the category of Best Apartment Architectural Design. The apartments feature elegant interiors and spacious balconies, allowing you to comfortably admire the vast open city skyline.
In Hanoi, several well-known serviced apartment brands such as Frasers Suite, Keangnam, Crown Plaza, and Somerset Westlake consistently attract significant attention. Frasers Suite, a serviced apartment from the globally renowned Frasers Property group, has made a strong positive impression on guests. Each apartment ranges from 125-156 m2, with one to three bedrooms, fully furnished, and featuring sophisticated design and international-standard amenities. Lotte Center, with its 258 luxurious and modern one- to four-bedroom apartments housed in a uniquely designed building inspired by the traditional Ao Dai dress, and adhering to environmental protection standards, is also a formidable contender in Hanoi's serviced apartment market.
A modern gym and swimming pool are available to cater to the needs of guests from all countries.
Generally, serviced apartments offer amenities similar to those found in high-end hotels, including swimming pools, modern gyms, lounges, mini-libraries, shuttle services, apartment maintenance support, and housekeeping. In addition, security and fire safety are always top priorities, becoming one of the main concerns for foreigners choosing accommodation in Vietnam. Therefore, many foreigners believe that living in apartments or serviced apartments offers more effective and secure management.
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