TAY HO OCCUPIES THE LARGEST SERVICED APARTMENTS IN SOURCE OF SUPPLY IN BA DINH DISTRICT.

In the context of new projects to be launched in the period, 2018-2020 will be located in Tay Ho district and Cau Giay District., CBRE Vietnam said that Tay Ho district will replace Ba Dinh to become the largest source of supply in new serviced apartments market. According to CBRE Vietnam, after Dream Apart- Hotel is opened at the end of 2016, Hanoi’s serviced apartments market in the first quarter in 2017 is relatively quiet. Total supply remained at 3,300 units. In there, Ba Dinh and Tay Ho district account for nearly 60% apartments. A – rated properties occupy for 70 % of the supply with 50 % located in Tay Ho district which shows that investors are strongly interested in this area.

CBRE Vietnam said that rental price of serviced apartments in Tay Ho this quarter was relatively stable, increasing by 0,7 % compared with the previous quarter, but decreasing of 0.3 % of years. A- rated rental price reaches to 31.84 USD/m2 which increases by 1 % on a quarterly basis and 1.3 on a year on year basis. Meanwhile, B - rated rental price declined slightly by 0.2 % compared with the fourth quarter in 2016. Due to high demand, Tay Ho district has the highest average price in the market, followed by Cau Giay, Ba Dinh, and Tu Liem. CBRE has explained the reasons for high demand is that in the 1st quarter of 2017, fill rates are improved in all grades. Specifically, A-rated increased by 3.1% points while B- rating goes up by 2.3 % points quarter on quarter.Mr. Marc Townsend said that source of supply of serviced apartments rental in tay ho still concentrated on certain areas without widespread of traditional apartments. In the past, due to the limit of the source of supply and lack of services and facilities, traditional apartments were not seen as competitors in serviced apartment segment. However, new high-end projects, which has launched in the past, has changed the face of the market.With the high quality of management and construction, favorite location and sufficient facilities, the traditional rental apartment model are advertised better for around 10 USD/m2/month. Meanwhile, the rental price of serviced apartments in Hanoi usually is about $24-$34/m2/month, Mr. Marc Townsend- Ceo of CBRE Vietnam said.