HCMC serviced apartment rents plummet

Some 2,000 of the 6,500 serviced apartments in the city remained unoccupied, the lowest occupancy rate since 2016.

Savills said the market was severely affected by the Covid-19 pandemic. One grade B and five grade C properties pulled out of the market and became office buildings. Serviced apartments, to attract tenants, have been offering discounts or free utilities.

The rental apartment market, a competitor, also experienced a drop in rents. A survey by VnExpress found apartment rents fell by an average of 20-30 percent.

HCMC will have around 41,000 new apartments entering the market in 2021, according to real estate Colliers International Vietnam.

These units would pose a strong competition to grade B and grade C serviced apartments, it said.

Another competitor, vacation rental market place Airbnb, is going through a slump after tenants canceled bookings due to the fear of coronavirus.