Hanoi Short of High-End Apartments

Market for prime apartments for lease is being warmed up by soaring demand in Hanoi, according to the CB Richard Ellis Vietnam (CBRE), a US real estate consultancy service provider.

 

“It is very difficult to lease a high-grade apartment at present, even the most expensive,” said Marc Townsend, managing director of CBRE.

 

Analysts said that the leasing fee of a 100 sq m apartment is US$3,000 a month, and a 4-room apartment is US$6,000 a month.

 

According to CB Richard Ellis, the high-grade apartment building Skyline Tower located near Truc Bach and West Lakes, which is in the final stage of construction, is fully occupied, though the leasing fees are relatively high, at $2,170 per month for a one-bedroom apartment and $6,400 per month for a four-room apartment.

 

The apartments all have good facilities, which consist of bathroom, living room, kitchen and bedroom.

 

In addition, the services here are very good, including the security guard, internationally standardized fire alarm system, spare electricity supply system, and laundry service. High-income earners are ready to pay such a high rent if they can enjoy high-grade services provided by professional managers.

 

It is wiser to lease apartments than staying in hotels, since the leasing fees are much cheaper, and services are much better.

 

However, the supply of high-grade apartments in Hanoi is very short. Despite the presence of several foreign invested apartment projects, Hanoi still lacks A-class apartments, and foreigners have no other choice than leasing medium-class apartments built by families.

 

Statistics released by CBRE recently said that the rate of apartment occupancy has reached 98 per cent in Hanoi.

 

CBRE has forecast that the demand for high-grade apartments and office buildings will increase sharply in the near future as more and more foreigners will come to Vietnam to make investments.