HCMC serviced apartments rents up 15% for short-term tenants

My Dung, a manager at a company that leases serviced apartments in the downtown area, said the price increases were seen in mid- to high-end buildings in Districts 1, 4, 7, Phu Nhuan, and Binh Thanh.

"Units whose rents have risen by over 10% are mostly short-term rentals. The increase is only 5-7% for long-term lease."

A one-bedroom studio apartment in these districts costs an average of VND800,000 (US$32.5) per night, up 14.3% from the end of 2023.

Rents for premium units have increased by more than 10% to VND1.2-1.5 million per night and VND1.7-2.4 million for one- and two-bedroom apartments.

Nguyen Quoc Dung, manager of another company renting out serviced apartments on Phu Nhuan’s Truong Quoc Dung Street, said daily rents have been hiked but monthly rates remain stable at VND14-27 million.

Over 80% of units are occupied, with the occupancy rate for one-bedroom apartments exceeding 90%, he said.

A company managing 255 high-end serviced apartments and officetels in Binh Thanh’s Nguyen Huu Canh Street area also reported similar rent hikes in the premium segment.

According to a report by property consultancy Savills, the average rent for serviced apartments in HCMC rose 1% year-on-year in the second quarter and the average occupancy rate was 79%.

Le Van Binh, a representative of a company specializing in serviced apartments, said prices are rising due to higher costs and a jump in demand for long-term accommodation from both locals and tourists.

"Some regular high-end apartment buildings are curbing renting out via Airbnb, and so short-term tenants are turning to premium serviced apartments."

Cao Thi Thanh Huong, senior manager of research at Savills Ho Chi Minh City, said steady growth in demand for long-term accommodation from foreign business visitors and enterprises has given property owners more confidence to hike rentals.

Troy Griffiths, deputy managing director of Savills Vietnam, said regular apartments are facing fierce competition from serviced apartments.

HCMC is expected to add 600 new serviced apartment units at nine projects, almost two thirds of them in District 1.