Basic HTML Version
timeout
34
A
s the economic hub of Viet-
nam, with vibrant economic
and commercial activities, Ho
Chi Minh City has attracted a
large number of foreign expatriates for
work and residence, resulting in the 15
year-plus development of the serviced
apartment sector.
Currently, this sector has over
3,900 units of all development quali-
ties and rent levels. This is a niche, yet
stable market segment, with occupan-
cy consistently exceeding 80 per cent
throughout the last few years.
Despite the economic downturn,
serviced apartment stock in Ho Chi Minh
City still achieved a 10 per cent annual
growth rate over the last five years. A
strong foreign direct investment (FDI)
level in Ho Chi Minh City and adjacent
provinces such as Dong Nai and Binh
Duong, has been the main trigger for the
development of this sector, especially
during the mid-2000s economic boom.
Although it has suffered from the
economic crisis, FDI has shown signs of
improvement recently, especially with
the flow from Asian countries such as
Japan and Korea. Furthermore, Ho Chi
Minh City still has a moderate cost of
living compared with other large Asian
cities, such as Singapore, Hong Kong
and Bangkok. These factors, along with
strong economic growth, will continue
to attract more foreign workers into
the city, giving positive prospects for
the development of the serviced apart-
ment sector.
Initially, the serviced apartment
projects were mostly located in the
CBD. However, with fast urbanisation
and strong development of major infra-
structure projects, serviced apartments
have spread to other parts of the city.
The three main areas with the highest
density are the CBD area (District 1 and
part of District 3), District 2 in the east
and District 7 in the south.
The CBD area, including District 1
and a part of District 3 is where all
Grade A serviced apartment projects
are currently located. The area is the
busiest business destination and has a
high concentration of office buildings
where major international companies
are located. There is also a wide range
of social and recreational facilities from
shopping centres, restaurants, interna-
tional schools and hospitals.
With their prime locations and
high development quality, the ser-
viced apartments in this area have the
highest rents in the city; for a typical
two-bedroom grade A project located
in the CBD, renters can expect to pay
from $2,500 to $3,500/month. Most
grade A projects in the CBD are man-
aged by international operators with
top-notch service standards, security
and amenities.
Ho Chi Minh City has a large and swelling number of serviced residences.
Nguyen Khanh Toan
, research manager for Savills Ho Chi Minh City, provides
an overview of the Saigon market and looks forward to where it is headed in
the near future
LUXURY LIVING AND TRAVEL
Serviced living proves big hit