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HOT PROPERTY
new, modern condominiums such as In-
dochina Plaza Hanoi, Richland Southern,
The Manor and Dolphin Plaza. Surround-
ing these properties are international
education facilities such as Korean and
Japanese schools and KinderWorld. Res-
taurants and marts catering to Japanese
and Koreans are growing in number
as well.
According to Piro, foreign investors
in Hanoi are evaluating new production
lines, building higher end constructions
and producing consumer goods which
reflect the positive growth and income
of Vietnamese society. “Therefore, the
demand for full serviced apartments
will continue with the right price-value
ratio for consumers,” he said.
The area is now home to some
outstanding serviced apartment pro-
jects, such as Crowne Plaza West Hanoi
Residences, Keangnam Hanoi Land-
mark Tower, and some other smaller
developments.
According to a source from Crowne
Plaza West Hanoi Residences, serviced
apartments in this development have
been full in recent months.
“Now we even have to compare
among different orders in order to
give priority to long term and big-
ger contracts,” they claimed, adding
that three bedroom apartments are
the most hunted because many busi-
nesspeople working in this area bring
family with them.
They also report that other ser-
viced apartment developments in the
west have a high occupancy rate of
up to 80 per cent, with the majority
of tenants coming from Japan, Tai-
wan and South Korea. Rental rates
for one-bedroom serviced apartments
in Keangnam start from $2,000 per
month and run up to $2,650 per
month for two-bedroom units.
According to Do Thu Hang, head
of Savills’ Hanoi research department,
to the third quarter of 2013, serviced
apartment demand in the west area of
Hanoi made up more than 23 per cent
of the total supply of the whole city.
This demand represents a 43 per cent
year-on-year rise.
“This is a very positive sign, showing
that the demand for serviced apartments
in the west is developing,” Hang said.
“We expect that with the increase
of investment from Asian countries,
they will still dominate the market in
the coming time,” Hang added.
Another preferred choice for expats
is leasing a unit from the increasing
number of quality condominium pro-
jects in the area, which are charging
much lower rental rates than serviced
apartment buildings. For instance, rent-
al rates at Indochina Plaza Hanoi (IPH)
start at $1,500 for two-bedroom units.
Nearby, hombuyers at Richland South-
ern are leasing two-bedroom units for
around $900 per month.
With stable supply and demand in-
creasing, some developers are wooing
their buyers by encouraging them to
rent their apartments.
In the IPH, the key tenants are Japa-
nese who represent more than 60 per
cent of total occupiers and who expect
a high level of quality.
“With IPH having recorded excep-
tional performance in terms of sales
and rental return generation with
major leasing occupancy by Japanese
residents who are very keen on the
serviced apartment model, we have
decided on a fresh approach to the
sales strategy in which we sell the ser-
viced apartments and then put them
up for lease. By doing this, we pro-
actively secure above-market rental
returns for residence buyers as we
have a great network of wealthy rent-
ers who are willing to move in right
away,” said Piro.
For starters, IPH’s developer decid-
ed to convert about five units into ser-
viced apartments by furnishing these
units and offering additional services.
“The program will be officially
launched later in the year; however, we
are always trying to think ahead of the
curve and accommodate the demands
of the market before our competitors. If
Crowne Plaza West Hanoi - a great choice for families