In the first quarter of 2024, Hanoi’s stock of serviced apartments remained stable compared to the fourth quarter of 2023, and increased by 2 percent year-on-year, reaching more than 6,000 units. The occupancy rate hit 82 percent, a fall of 1 percentage point quarter-on-quarter but up 2 percentage points year-on-year, according to Savills.
This is, in part, because FDI inflows boost into the capital city, according to Savills. Of note, in the first half of 2024, Hanoi had the fourth highest inflow of FDI in Vietnam recording US$1.18 billion, accounting for 7.78 percent of the country’s total registered FDI.
These new FDI projects have seen a rise in foreign experts living inthe city. In 2023, 10,200 businesses applied for permission to hire foreign workers across 14,700 positions. In the first six months of 2024 alone, however, there were nearly 11,200 businesses approved to hire for about 14,000 positions, according to The Hanoi Department of Labor.
To accommodate this growing workforce of foreign experts, more than 3,800 units have been added in 2024 with more to come. Parkroyal Serviced Suites Hanoi, for example, is expected to come into operation this year with 227 units and Fusion Suites is expected to provide the market with 193 units in 2025. Hanoi’s Tay Ho District, popular with foreign workers, will account for 63 percent of the new supply with 2,423 units, and is expected to provide the largest Grade A supply from 2025.
This suggests that despite broader challenges facing Vietnam’s real estate industry there is still some momentum.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked