SERVICED APARTMENT MARKET              

Supply

The majority of expatriate residential developments in Hanoi are found in Ba Dinh District and the West Lake area in Tay Ho District. which is becoming the centre of the upscale residential market due to good environment and the availability of land for development.

The total number of serviced residences is about 1,900 units.

Range of Monthly Asking Rent per Unit – Grades A & B

Rents range from USD$25 to over USD$50 at some of the more expensive / brand-named properties with lease terms typically a year. However, with the credit crunch, less expats are being deemed necessary and there is growing downward pressure and occupancy rates are increasing. This is however partially due to the increase of supply, with several new properties coming on-steam in 2008/9 including Somerset Hoa Binh towers (office & resy).

Size – sqm       1 bedroom        2 bedroom      3 bedroom       4 bedroom      5 bedroom

$ / pcm             1,000-3,000     1,500-4,000     2,000-4,500     2,900-6,500     4,000-8,000

Future Projects

Several new luxury service apartment projects have recently, or are due to come on-line in Hanoi over the next couple of years including : -

- Pacific Place (180)

- Skyline (88)

- Somerset Hoa Binh (206)

- Atlanta (52)

- Somerset Westlake Hanoi (refurbishment of 61 units)

- DMC Tan Long Skyline

- Vincom 25 floor $28.5 million apartment complex next to Vincom twin ­towers.

- Ngoc Khanh Plaza.

These projects are under construction. Several other huge schemes are at the initial planning stages and the final plans have not been approved. As a number of these proposed projects are only at the preliminary design or planning phase, their completion dates, if implemented, may stretch beyond the next 3 years. It would not be unrealistic to assume that not all of these developments will come to fruition, as building plans and proposals are frequently amended or shelved in response to slow market conditions.