Boutique Serviced Apartments - Emerging Market

According to Cushman & Wakefield’s research, there are approximately 3,300 serviced apartments in 63 projects in HCM market. Grade A and B dominate the market when contributing the highest share of the whole market inventory. 70% of Grade A & B projects are managed by International Operators such as Sedona, The Ascott, IHG, Phu My Hung, Norfolk Group, The Peninsula Properties. 30% are self – managed.

C&W also observes that there has been an emerging trend of boutique serviced apartments with 7 projects being launched into the downtown Ho Chi Minh City, supplying an additional 257 units so far.

The research demonstrates that the current average occupation rate is 83% signaling that this sector of the residential market has really bucked the trend. The boutique market is typically made up of developments that are small in scale of 15 to 60 units including studios, one and two bedrooms ranging from 30 sqm to 85 sqm and the average rental is USD25- 28 per sqm. They offer contemporary design and finishing, good level of on site facilities and a personalized service quality. 

These are well positioned to serve middle level tenants on a short and long term basis and companies with increasingly tightened housing budgets are now taking advantage of the downturn in the economy to relocate their staff from some of the internationally operated serviced apartment complexes to boutique projects where big cost savings can be made but knowing that their staff will be just as well accommodated.

One of the featuring properties is the newly opened Q Residence. This 60 unit building provides modern comfortable surroundings with onsite amenities in a prime residential location only minutes to the CBD and 5 minutes from Nguyen Van Troi Street – the airport link. The building includes fully furnished one bedroom apartments from 43 – 53 sqm and two bedroom apartments from 63 - 67sqm in different configurations with an extensive range of services and facilities that consists of gymnasium, terrace where you can relax after long working hours. Excellent customer service is the priority of the Management team. Mr. Anirban, one of the first tenants said “There is a specific focus on keeping tenants happy here, plus everything is brand new. The service there is great – nice and personalized”.

On occasion of the New Year, Q Residence has offered the Promotion up to 10% discount for leases to be signed before 28 February 2013.