Serviced apartments see strong growth in Hanoi, face challenges in HCMC
The serviced apartment market in Hanoi experienced significant growth in 2024, driven by strong foreign direct investment (FDI) flows, while it faced challenges from declining FDI and increasing competition in Ho Chi Minh City.

A serviced apartment at the SwissBelresidences Hanoi project by Swiss-Belhotel International. Photo courtesy of Epic Tower.
In 2024, Vietnam attracted a total of $38.2 billion in registered FDI. The FDI disbursement reached $25.4 billion, a 9% year-on-year increase and an all-time high.
The influx of FDI led to a substantial number of foreign experts and workers living and working in Vietnam, boosting the growth of serviced apartments, particularly in Hanoi and HCMC.
However, this segment showed contrasting trends in the two major cities.
According to a Savills Vietnam report, the total serviced apartment supply reached 6,246 units from 64 projects, maintaining stability quarter-on-quarter and increasing by 3% year-on-year, after the SwissBelresidences Hanoi project began operation in Q3/2024.
Occupancy rates rose 2 percentage points quarter-on-quarter and year-on-year to 84%. In particular, A- and B-grade apartments had higher occupancy rates quarter-on-quarter, while C-grade ones saw a 2-percentage-point decline.
Average rent climbed by 1% quarter-on-quarter and 2% year-on-year, reaching nearly VND600,000 ($23.5) per square meter per month. Grade C was the only segment to experience a decrease in rental prices.
In 2024, Hanoi attracted $2.2 billion in FDI from 293 newly registered projects, a 30% surge from the same period of 2023, ranking fifth in the country, after Bac Ninh, Hai Phong, HCM, and Quang Ninh.
The capital city also approved the planning of three new industrial parks (IPs) in Thuong Tin and Soc Son districts, covering a total area of 600 hectares. These include Bac Thuong Tin IP (137 hectares), Phung Hiep IP (175 hectares), and Soc Son IP (324 hectares). Ten existing IPs span 1,300 hectares, nine of which are fully occupied.
The expansion of industrial parks is expected to attract more tenants into the serviced apartment market, particularly foreign experts, engineers, and technicians.
Regarding future supply, Savills expected from this year, Hanoi will have 17 new projects with 4,077 units to be launched.
In 2025 alone, seven projects will provide 2,889 units, with the West Lake View Complex projected to add the largest supply of A-grade units. One project in Tay Ho district is expected to add 162 units by 2026. Up to 83% of future supply will be in the inner city, while the remaining 17% will be in the western area.
International operators continue to dominate Hanoi’s market, with 87% of future supply. Notable market players include The Ascott, Lotte Group, Parkroyal Serviced Suites Hanoi, Shilla Hotels & Resorts, Hilton, and Hyatt.
Matthew Powell, director of Savills Hanoi, said he believed that the development of industrial parks, along with strong FDI flows, has been a key driver of the serviced apartment demand growth.
Challenges from declining FDI, competition in HCMC
Meanwhile, in HCMC, in Q4/2024, the supply of serviced apartments decreased by 3% quarter-on-quarter but remained stable year-on-year, with over 8,000 units.
The quarterly decline was primarily due to the closure of 55 A-grade apartments at Indochine Park Tower and the conversion of 175 serviced apartments into hotels in two projects.
Savills forecast that the future supply of serviced apartments in the southern hub will be limited, with increasing competition from rental apartments.
By 2027, only nine projects with a total of around 700 units are expected to enter the market. Of these, B-grade apartments will account for 67% of future supply, with an average 160 units per project.
Since 2021, the situation had improved, with occupancy rates increasing by an average of 4 percentage points per year and rental prices rising 1% annually. However, in 2024, occupancy dropped by 3 percentage points year-on-year to 79%, mainly due to weaker short-term demand in Q3. Rental prices remained stable year-on-year at VND515,000 ($20.2) per sqm per month.
In Q4, rents rose 2% quarter-on-quarter and year-on-year, reaching VND522,000 ($20.45) per sqm per month. Along with the rent increase, high demand during the year-end period helped boost landlords' confidence.
Occupancy increased by 5 percentage points quarter-on-quarter and by 1 percentage point year-on-year to 82%, thanks to demand from expatriates, international visitors, and business travelers.
There was strong consumption across all categories, with 315 units sold. B-grade apartments accounted for the largest share at 77%, driven by short-term demand from international visitors and business travelers, followed by C-grade with 20%, and A-grade 3%.
FDI is a key driver of accommodation demand from foreign workers in Vietnam. However, experts assessed that the slowdown in FDI growth in HCMC may pose challenges for the growth of this segment.
In 2024, registered FDI in the city reached $3 billion, a 49% plunge from the previous year. Newly registered capital was $511 million, down 15% year on year.
At the same time, the serviced apartment segment in HCMC faced direct competition from more affordable rental apartments. In Q4, serviced apartment rents were approximately 45-112% higher than those for high-end residential apartments. By 2027, more than 5,000 A- and B-grade apartments are expected to enter the market.
Su Ngoc Khuong, senior director of investment at Savills Vietnam, commented that in 2024, serviced apartments in HCMC showed an improvement in performance thanks to growth in international visitors and the year-end travel demand. However, the slowdown in FDI could affect the future prospects of this sector, he noted.
- Read More
US agreement on 20% tariff for goods imported from Vietnam 'a success': expert
Reaching agreement with the U.S. on 20% tariff for goods imported from Vietnam and even 40% for transshipping is a success for the Southeast Asian country, said Ho Quoc Tuan, a senior lecturer of accounting & finance at University of Bristol, the UK.
Economy - Thu, July 3, 2025 | 9:55 am GMT+7
Malaysia diversifies trade partners to stay economically resilient
Malaysia’s economy remains resilient thanks to its long-term and comprehensive economic strategy, despite geopolitical tensions in the Middle East that have raised concerns about the possible closure of the Strait of Hormuz and disruption to global energy supplies, according to the Ministry of Trade, Investment and Industry (MITI).
Southeast Asia - Thu, July 3, 2025 | 8:44 am GMT+7
Vietnam Airlines launches first direct air link between Vietnam and Italy
National-flag carrier Vietnam Airlines officially launched its first direct flight connecting Hanoi and Milan on Tuesday, establishing direct air link between Vietnam and Italy for the first time.
Travel - Thu, July 3, 2025 | 8:28 am GMT+7
Makara Capital Partners wants to mobilize $5-7 bln for investments in Vietnam: exec
Singapore's Makara Capital Partners is eyeing investment opportunities in Vietnam, including those in the biological and pharmaceutical industries and the International Financial Center project.
Economy - Thu, July 3, 2025 | 12:52 am GMT+7
Vietnam, US reach agreement on landmark trade deal framework
Vietnam's Party chief To Lam and U.S. President Donald Trump on Wednesday stated that they welcome the agreement reached by the two countries' negotiating teams on the Joint Vietnam-United States Statement on a Fair, Balanced, and Reciprocal Trade Agreement Framework.
Economy - Wed, July 2, 2025 | 11:28 pm GMT+7
Vietnam's ACV expects 17% profit drop, plans $1.52 bln investment in Long Thanh airport this year
State-owned Airports Corporation of Vietnam (ACV), which operates 22 airports nationwide, expects its 2025 pre-tax profit to decline 17% year-on-year to VND10.53 trillion ($402.56 million) due to foreign exchange losses.
Companies - Wed, July 2, 2025 | 4:08 pm GMT+7
Two mega urban area projects in central Vietnam get greenlight
Two major urban projects in Quang Ngai province's Dung Quat Economic Zone, with a total investment of over VND54 trillion ($2.06 billion), have received in-principle approvals from Deputy Prime Minister Tran Hong Ha.
Real Estate - Wed, July 2, 2025 | 4:02 pm GMT+7
Roadmap for cleaner fuel transition launched for Vietnam’s first oil refinery Dung Quat
Binh Son Refining and Petrochemical JSC (BSR) and PV Gas D, a subsidiary of PV Gas, have signed an MoU on LNG trading principles, marking a significant step in BSR’s roadmap to transition from traditional fuels to cleaner alternatives at Dung Quat Oil Refinery.
Economy - Wed, July 2, 2025 | 3:52 pm GMT+7
EPC contracts signed for Vietnam’s offshore Block B - O Mon gas pipeline
Southwest Pipeline Operating Company (SWPOC), a subsidiary of Vietnam’s state-owned Petrovietnam, on Monday signed EPC contracts for two key packages (PC1 and PC2) of the Block B – O Mon gas pipeline project.
Economy - Wed, July 2, 2025 | 2:01 pm GMT+7
Major Vietnamese developer Sun Group proposes riverfront road, metro line projects in HCMC
Sun Group, a leading real estate developer in Vietnam, is seeking Ho Chi Minh City authorities’ permission to invest in a riverfront road along the Saigon River and a 40-kilometer metro line under the build-transfer (BT) model in the former Cu Chi district.
Infrastructure - Wed, July 2, 2025 | 1:32 pm GMT+7
Vietnam stock market to enjoy favorable 'tailwinds' in H2: experts
While external challenges are persistent, domestic economic stimulus policies will be a key driver helping Vietnam's stock market become more positive in the remaining six months of 2025, according to experts.
Finance - Wed, July 2, 2025 | 8:20 am GMT+7
Agro-forestry-fishery exports rise over 14% in H1
Vietnam’s total agro-forestry-fishery trade in the first half of 2025 is estimated at $57 billion, with exports reaching $33.5 billion, up 14.3% year-on-year, according to the Ministry of Agriculture and Environment.
Companies - Tue, July 1, 2025 | 10:33 pm GMT+7
Banks end magnetic cards, require biometrics for firms from July 1
From July 1, banks across Vietnam have stopped using magnetic stripe cards and now require biometrics for company accounts to prevent fraud and improve security.
Banking - Tue, July 1, 2025 | 10:17 pm GMT+7
Data Law aims to protect data and unlock value
The 2024 Data Law, which aims to regulate the collection, sharing and commercial use of data, creating a trusted marketplace while enhancing personal data protection and cybersecurity, takes effect on Tuesday, July 1.
Companies - Tue, July 1, 2025 | 10:06 pm GMT+7
Thailand attracts large investment in data centers, digital services
The Thailand Board of Investment (BOI) has approved investment applications worth a total of THB 28.6 billion (about $870 million) in digital infrastructure and travel sector projects, as well as incentives for the use of local content in the manufacturing of electric vehicles (EV) and hybrids, as well as electrical appliances (E&E).
Southeast Asia - Tue, July 1, 2025 | 9:55 pm GMT+7
Indonesia launches $5.9 bln EV battery ecosystem
Indonesia held a groundbreaking ceremony on Sunday for its integrated electric vehicle (EV) battery ecosystem in Karawang, West Java province.
Southeast Asia - Tue, July 1, 2025 | 9:49 pm GMT+7