A survey by Gialong news newspaper found a number of such serviced apartments available in places such as Hoan Kiem, Ba Dinh, Hai Ba Trung and Tay Ho district with monthly rents of US$300-500.
A 40sq.m apartment on Hai Ba Trung Street in Hoan Kiem District with a kitchen and washing machine, refrigerator and wifi costs $450.
For shorter terms, they cost up to VNĐ900,000 ($38) per day.
Instead of investing millions of dollars to build properties Hanoi Capital inner districts, real estate developers are renting properties and furnishing apartments and putting them up as mid-priced serviced apartments for rent.
A survey by Gialong news newspaper found a number of such serviced apartments available in places such as Hoan Kiem, Ba Dinh, Hai Ba Trung and Tay Ho district with monthly rents of US$300-500.
A 40sq.m apartment on Hai Ba Trung Street in Hoan Kiem District
of apartment for rent in hanoi with a kitchen and washing machine, refrigerator and wifi costs $450.
For shorter terms, they cost up to VNĐ900,000 ($38) per day.
A person who turned a three-storey building he rented on Tran Phu Street in Ba Dinh District said it was the third house he rented to lease out.
He pays VNĐ60 million a month for it, and invested VNĐ400 million to renovate and buy furniture before leasing it out.
With its six bedrooms, it is expected to fetch VNĐ110 million per month.
Bui Dang Tuan, owner of a house on Tran Hung Dao Street in the same district, said she has refused to rent a new house she bought for VNĐ18 billion (nearly $1 million) to a lessee for VNĐ45 million.
Instead, she plans to turn it into a serviced apartment and get more than VNĐ45 million.
Nguyen Duy Thai, CEO of Gia Long Real Estate Co. Ltd., said mid-priced serviced apartments have mushroomed in the last two years with average monthly rents of around $500.
These are targeted at relatively wealthy tenants who have to work in these areas for short periods, he said.
Recently, they have also been seen in suburban districts like Dong da, Cau Giay, he said.
“In the past few years, serviced apartments have been recognised as a safe and profitable channel for investment.”
Bui Khoa, head of Thien Khoa housing Việt Nam, said mid-priced serviced apartments are preferred by young tenants. While expatriates working for multinational groups usually prefer regular apartments in inner districts, the young tenants prefer comfortable mid-range serviced apartments which offer them privacy, instead of apartment buildings and boarding houses.
Most of them are in five- to seven-storey complexes built on smallish plots of land in inner districts. A complex could have seven to 30 units measuring 20-40sq.m and costing $350-$380 per month.
In suburban districts such as Dong da, Cau Giay, they could cost VNĐ4-6 million for 20-40sq.m units.
Khoa said these are targeted at medium-income civil servants and workers who spend long hours at work
