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According to Ms. Tu Thi Hong An, Director of Savills commercial leasing, the serviced apartment market shows strong resilience, with good service projects to attract customers back to the same average capacity. pretty good. With FDI inflows and demand from foreign experts in the future, the market may return quickly in the near future.

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The quarter 4/2020 report of this unit shows that in 2020, the total supply is approximately 6,500 units, up 3% QoQ and 2% YoY. There are 5 new mid-end projects including 5 projects supplying 100 units managed by CityHouse. By 2022, more than 750 units from 7 projects are expected to enter the market. These projects are managed by both a foreign operator like Somerset and a local operator such as CityHouse.

According to Savills, the average serviced apartment rents are down 7% year on year. Landlords are reducing rental rates or offering utility services free of charge to increase competitiveness. In 2020, average capacity is down 20 percentage points year on year. In the first half of 2020, total consumption reached negative, but in the second half of the year total consumption was 240 units after foreign experts were given priority back. Operators are more successful when they are flexibly leasing both short and long term guests.

In 2020, the total foreign direct investment (FDI) in Ho Chi Minh City is approximately 4.4 billion USD, down 48% YoY, but still the locality attracting the highest FDI in the country. The forecast for Ho Chi Minh City is still positive. Ho Chi Minh City has reviewed approximately 13,000 applications for expert entry to Vietnam showing an improvement in supply.

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Until commercial flights continue, market forecast is uncertain, but long term forecasts remain positive. The Covid vaccine is in the middle of a trial in Vietnam, which loosens prospects for travel restriction. According to Global Hospitality, it is forecasted that by 2023 the revenue of the hospitality industry will be 4% higher than 2019.

According to Ms. Tu Thi Hong An, Director of Savills commercial leasing, the serviced apartment market shows strong resilience, with good service projects to attract customers back to the same average capacity. pretty good. With FDI inflows and demand from foreign experts in the future, the market may return quickly in the near future.

Forecast for this market, Colliers International Vietnam also said that in the remainder of 2021, when the Covid-19 pandemic is expected to be controlled with the gradual introduction of vaccines, businesses will be back to normal and international flights will be reopened. In addition, International Trade Agreements such as EVFTA, UKVFTA and RCEP will create opportunities for new retailers to come to work from abroad to Vietnam, increasing the demand for serviced apartments of international visitors to Vietnam. Male.

The report of this unit also shows that the rental price and occupancy rate of serviced apartments have continuously decreased. Specifically, the last quarter of 2020 saw a 5% decrease in rent compared to the same period in 2019, the same decrease compared to the third quarter. The serviced apartment occupancy rate in Ho Chi Minh City fell sharply by more than 30% q-o-q. In 2020, the average rental rate is 39 USD / m2 / month for Grade A and 31.23 USD / m2 / month for Grade B. The occupancy rate of Grade A decreases to only 61%, lower than 90 % in the same period last year, while Grade B occupancy decreased to 56%, lower than 84% in the previous quarter.

Serviced apartment tenants mainly include foreigners on business trips as well as foreigners working in Vietnam, and the Covid-19 pandemic has reduced many flights into the country, thus affecting demand. general about serviced apartments in HCMC.

In terms of supply, according to Colliers International Vietnam, there was no new supply in Q42020, after the second outbreak was under control, most of the serviced apartments were back online. In total, there will be about 6,200 rooms by 2020. Some upcoming projects have yet to confirm their completion date. The year 2021 is expected to be the year when Sonata Residence and Berkley Serviced Residence start to sell and add a large number of new rooms to the market.

In terms of demand, in the fourth quarter of 2020, when some international flights are back online, the demand for short-term serviced apartments increased slightly. Many serviced apartments have offered attractive promotions and discounts up to 10-20% to boost sales and offset the losses suffered by the serviced apartment market.

This unit forecasts that the demand is unlikely to increase in the first quarter of 2021 because people will celebrate Tet, meaning that business will slow down and fewer people come to Vietnam to work.

Theo Nhịp sống kinh tế



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