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D
espite the economic down-
turn, Lew Yen Ping, area man-
ager of Ascott International
Management Vietnam, the
largest operator of serviced apart-
ments in Hanoi, remains very positive.
And she has good reason to be –
Ascott currently boasts an occupancy
rate of over 80 per cent across its
portfolio.
“We are confident about the long-
term outlook of Vietnam’s economy.
Its large, young workforce and pro-
business environment will continue to
attract multinational companies to set
up operations. This will, in turn, bring
expatriates and business travellers into
the country, generating strong de-
mand for serviced residences in Viet-
nam,” she said.
The serviced apartment segment
seems to be less affected by the property
market’s woes, with demand for rental
apartments in major cities quite high.
She reports that, despite the supply
increasing, the number of international
service resident operators is still limited,
leading to the fact that the demand is
consistent: “A lot of supply is coming,
but we have only a few international
players, so the demand remains, mak-
ing Hanoi attractive to investors.”
The main competitor of high-end
serviced apartment complexes is private
housing. However, according to many
experts, most tenants aspire to lease a
serviced apartment rather than a private
house, as they will be offered a range of
facilities which private houses can not
supply, and most importantly, living in
complexes are 100 per cent safe.
Meanwhile, houses with desirable
land are rarely on the market, while ex-
isting buildings need to be renovated or
even demolished, pushing up the total
price. Furthermore, car access can often
be difficult.
In contrast, serviced apartments
normally have good access, good views
and come with amenities and facilities
that would be uneconomic to install
and maintain in a standard house.
“At Ascott’s serviced residences, our
residents do not just come back to their
accommodation, they come home to
familiar faces, welcoming surroundings
and the assurance that their needs will
be taken care of. Guests appreciate that
Ascott understands their concerns,“
said Lew.
Due to the success of the serviced
apartment segment, a number of hotel
developers have been converting their
hotel rooms into serviced apartments.
InterContinetal Westlake Hanoi is
one example. The hotel’s developers ,
Berjaya and GTC, have decided to con-
vert around one fifth of the total hotel’s
rooms into residences.
“We see the market is growing
and with this shift we will have more
options for our guests who wish to
stay in a residence rather than a sim-
ple hotel room,” said Adam McDonald,
general manager of InterContinental
Hanoi Westlake.
While some areas of the property market are on
shaky ground, the serviced apartment sector is not
only riding out the rough spell, but seeing consid-
erable growth.
Bich Ngoc
reports.
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