After a challenging period due to the pandemic, the serviced apartment market had a supply increase in the last quarter of the year. However, besides the supply and demand factors, the quality of serviced apartments is also the utmost priority to meet the strict requirements of the high-end customer group.

Serviced apartments: Why cannot the excess of supply meet the demand?

Thomas McClelland is a financial adviser working at a multinational financial group headquartered in the centre of Hanoi. When he first received the assignment to relocate to Vietnam for work, his biggest concern was to find accommodation. Because of not familiar with the traffic, Mr McClelland intended to find an apartment near the company’s headquarters for convenient transportation. However, due to the inability to find a place that matched the criteria set forth, he had to rent an apartment more than 10km away from the workplace. Spending two hours a day commuting makes Thomas crave to find another place that fully meets the needs of comfortable, modern living, with a more central location.

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Foreign experts often prefer hotel-serviced apartments (Illustration: Serviced apartment in Oakwood Residence Hanoi)

In regards to the serviced apartment market, a report by Savills Vietnam stated that, despite the complicated situation of the Covid-19 pandemic, the supply of serviced residences in Hanoi reached 5,500 units in the second quarter of 2021, an increase of 20% perennially. The proportion of Grade A properties has been stable over the past five years at 53% of the total number of hospitality properties. They are mostly managed by the Ascott and “Oakwood” – a newcomer to the Vietnam market.

Viet Linh, a real estate consultant in the foreign customer service sector, said that although the serviced apartment market has increased in quantity, not all can meet the rigorous quality requirements of the customers being senior experts.

With extensive experience in consulting for expatriate guests, Viet Linh shared specific criteria that developers of rental units should pay more attention to when developing their projects. The first is the location; foreign customers often search for projects close to the office or central districts due to their unfamiliarity with the new city. The second is the quality of facilities at places, such as gyms, swimming pools, health care services, etc. The third is guaranteed security.

“The standard of living for foreigner experts is much higher than ours. This group of customers is not simply looking for a lodgment; they require a private residence to rest and relax after stressful working hours. These criteria are what distinguish high-class serviced apartments,” Mr Linh stressed.

At this time, there are not many investors with high-class serviced apartments in Hanoi, Ho Chi Minh City or other big cities that can satisfy these criteria. Prominent among them is Van Phu – Invest, a real estate developer who is currently emerging in the sector of serviced apartments and hotels with the aesthetic project Oakwood Residence Hanoi in Quang An, Tay Ho District. Even in the pandemic period starting from 2019 to now, Oakwood Residence Hanoi has still recorded a high occupancy rate, with customers being mainly foreign experts.

Van Phu – Invest: Dedicated to creating competitive advantage

After nearly two decades of creating its legacy with the residential sector and urban real estate segment, Van Phu – Invest has embarked on tourism properties and marked its growth with the upscale serviced apartment and hotel projects. Consistent with the business philosophy of “dedicated to creating life values”, Van Phu – Invest develops product lines carrying distinguishing values, no matter which segment they are.

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Serviced apartment at Grandeur Palace – Giang Vo project of Van Phu – Invest

Right at the initial development step of serviced apartment projects, Van Phu – Invest carefully handpicked the most prime and convenient location inside the bustling city. Oakwood Residence Hanoi stands next to the breezy West lake with a poetic and peaceful view, only 4 km from the Old Quarter and less than 20 minutes by car from the International Noi Bai Airport. The Grandeur Palace – Giang Vo locates in the middle of the most bustling street of Ba Dinh district, one of the rare “diamond” plots left in Hanoi. Their central location offers convenient access to any point in the city.

With no stereotype, each project of Van Phu – Invest is an original product, being invested and researched meticulously through a comprehensive and systematic approach. Oakwood Residence Hanoi illustrates an elegant and classy style, as a unique art gallery nestled in the middle of the peninsula, overlooking the picturesque West Lake. Meanwhile, Grandeur Palace – Giang Vo impresses onlookers via sophisticated and extravagant design, as shown in the decoration of the hall, corridor, blossom garden, internal walkways, etc. The project brings a contemporary breath and a luxurious and classy neoclassical style of Western European architecture.

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Infinity pool at Grandeur Palace – Giang Vo project

Not only creating stunning and serene space, Van Phu – Invest also pays special attention to integrating diverse and rich facilities and perfecting service quality; towards maximising customers’ personal experience. Typically, the Grandeur Palace – Giang Vo turns the dream of a resort in the heart of the capital into reality. On the top floor of the building is a 4-season 50-meter infinity pool (meeting the standard of Olympic swimming pool length), equipped with transparent glass walls and unlimited views. From here, you can immerse yourself into the clear blue water and behold the gorgeous sunset pouring on the whole city after stressful working hours.

Right from the moment of embarking on the serviced apartment business, Van Phu – Invest is determined that maintenance and operation (O&M) management is one of the vital factors contributing to the project’s success. So the investor always chooses global reputable service providers to ensure the maintenance of 5-star service standards. Oakwood Residence Hanoi – the first project of the hotel & serviced apartment segment of Van Phu – Invest is an instance. The investor has selected Oakwood – a global leader in hospitality management with nearly 25,000 award-winning serviced apartments and hotels across North America, Asia and Europe and more than 50 years of experience.

Through “shaking hands” with international partners, Oakwood Residence Hanoi was warmly welcomed by domestic and foreign customers, as well as highly valued by many organisations and associations. The project won prestigious awards, including “Project worth living in 2020” from Vietnam Chamber of Commerce and Industry (VCCI), World Luxury Hotel Awards 2020: Luxury Serviced Apartment (Continent Winner – Asia), International Property Awards 2021: “Best Hotel Interior Design” (Asia Pacific), Golden Dragon Awards 2021: “Hanoi’s Leading Serviced Apartment”, etc.

“In addition to promoting the strength of planning and investing in the construction of urban areas across the country, Van Phu – Invest will accelerate our business in the hospitality real estate in the coming time, focusing on high-class serviced apartment products. We are dedicated to creating works with unique architecture and bringing a safe, comfortable and artistic living environment for residents to enjoy a life rich in both physical and spiritual. Investing in hospitality property helps us accomplish the goal of creating distinguish life values for customers.” shared a representative of Van Phu – Invest.