Why serviced apartment rents in Ho Chi Minh City are 30% higher than traditional units

Several factors sustain long-term occupancy rates for this sector.

According to an Avison Young report, the performance of serviced apartments in HCMC remained stable in the third quarter of 2024. 

“Average rental prices for both Grade A and B segments held steady at 39.1 USD/sqm/month and 21.3 USD/sqm/month, respectively. Grade A serviced apartments range from 1,490 USD to 7,400 USD/unit/month, while Grade B ranges from 1,000 USD to 4,000 USD,” the report added.

Here’s more from Avison Young:

The occupancy rate for Grade A slightly decreased by about 2%, while Grade B remained unchanged. To compete with traditional apartments, most serviced projects are keeping rental prices stable for up to two years, with Grade A offerings also including incentives like complimentary breakfast and room upgrades. 

Although rental prices are approximately 30% higher than those of traditional apartments, the convenient locations, quality amenities, and flexibility in lease terms are key factors that help sustain long-term occupancy rates for serviced apartments. 

Most tenants also prefer to sign multi-year contracts to benefit from these incentives, with serviced apartments priced between 1,500 and 3,000 USD/unit/month being the most popular choice among renters.