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Serviced apartments in Vietnam typically command higher monthly rents than condos due to bundled amenities and services. They achieve higher occupancy rates but come with increased operating costs and more complex regulations.
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Serviced apartments in Ho Chi Minh City rent for $600-$3,000+ monthly versus condos at $540-$1,900 for similar sizes.
Serviced apartments achieve 80-89% occupancy rates compared to 68-70% for condos, with shorter tenant stays but higher yields.
| Aspect | Serviced Apartments | Condos |
|---|---|---|
| Monthly Rent (1BR) | $1,000-$2,000 | $1,250 average |
| Occupancy Rate | 80-89% | 68-70% |
| Typical Stay Duration | Weeks to months | 6 months to 2+ years |
| Main Tenants | Expats, corporate clients | Locals, families, students |
| Gross Rental Yield | 7-8% | 5-7% |
| Resale Difficulty | Higher | Lower |
| Operating Costs | Higher (bundled services) | Lower (separate utilities) |
How much do serviced apartments cost monthly compared to condos in Ho Chi Minh City and Hanoi?
Serviced apartments in Ho Chi Minh City command significantly higher monthly rents than comparable condos due to bundled services and premium amenities.
Budget serviced apartments in Ho Chi Minh City start at $600-$800 per month, while mid-range units cost $1,000-$2,000 monthly. Luxury serviced apartments exceed $3,000 per month in prime locations like District 1 and District 3.
Regular condos offer more affordable options with studios averaging 13.8 million VND ($540) monthly, one-bedroom units around 32 million VND ($1,250), and two-bedrooms approximately 49 million VND ($1,900) in similar prime locations. The price difference reflects the all-inclusive nature of serviced apartments versus the bare rental structure of condos.
Hanoi follows similar patterns with serviced apartments typically costing 20-40% more than condos in equivalent neighborhoods like Hoan Kiem, Ba Dinh, and Tay Ho districts.
What are the occupancy rates for serviced apartments versus condos in Vietnam's major cities?
Serviced apartments consistently achieve higher occupancy rates than condos across Vietnam's major cities as of September 2025.
Serviced apartments maintain occupancy rates between 80-89% in both Ho Chi Minh City and Hanoi, driven by steady demand from foreign direct investment, expatriate workers, and international business travelers. This high occupancy stems from their flexibility and comprehensive service packages that appeal to short-term residents.
Traditional condos average lower occupancy rates of 68-70% with greater variability depending on location, building quality, and management standards. Condo occupancy fluctuates more significantly based on seasonal demand and local market conditions.
The higher occupancy rates of serviced apartments translate directly into more predictable rental income for property owners, making them attractive investment options despite higher initial costs.
How long do tenants typically stay in serviced apartments compared to condos?
Tenant stay duration differs dramatically between serviced apartments and condos, reflecting their distinct target markets and rental structures.
Serviced apartment tenants typically stay for weeks to several months, with the average lease lasting 3-6 months. This shorter duration suits expatriate professionals, diplomatic staff, and corporate clients who require flexible housing solutions during temporary assignments or business relocations.
Condo tenants prefer longer commitments, usually signing leases for 6 months to 2+ years. Local families, students, and long-term expatriate residents choose condos for stability and the ability to personalize their living space over extended periods.
The shorter stay duration in serviced apartments creates higher tenant turnover but also enables owners to adjust rental rates more frequently to match market conditions. It's something we develop in our Vietnam property pack.
Which types of tenants choose serviced apartments versus condos?
The tenant profiles for serviced apartments and condos reflect distinct lifestyle preferences and housing needs in Vietnam's rental market.
Serviced apartments primarily attract expatriate professionals, international business travelers, diplomatic staff, and corporate clients relocating to Vietnam. These tenants prioritize convenience, bundled services, and prime locations near business districts, embassies, and international schools.
Condos appeal to Vietnamese locals, international students, families, and long-term expatriate residents who value space, customization options, and cost savings. These tenants often prefer establishing roots in residential neighborhoods with access to local amenities and transportation networks.
Corporate housing programs frequently choose serviced apartments for employee relocations, while individual renters seeking permanent housing gravitate toward condos for their flexibility and lower ongoing costs.
The distinct tenant segments create different demand patterns, with serviced apartments experiencing steady corporate-driven demand and condos facing more seasonal variations based on local housing cycles.
How do monthly operating costs differ between serviced apartments and condos?
| Cost Category | Serviced Apartments | Condos |
|---|---|---|
| Utilities | Included (commercial rates) | Separate billing (residential rates) |
| Management Fees | Bundled in rent | 200,000-500,000 VND monthly |
| Housekeeping | Daily/weekly included | Optional, tenant-arranged |
| Security | 24/7 professional service | Building security (varies) |
| Maintenance | Full-service included | Tenant responsibility |
| Internet/Cable | Premium packages included | Separate subscription |
| Amenity Access | Unlimited use included | Additional fees possible |
What tax obligations and regulations apply differently to serviced apartments versus condos?
Serviced apartments and condos face distinctly different regulatory frameworks and tax obligations in Vietnam as of September 2025.
Serviced apartments operate under business regulations requiring a business license, VAT registration (5%), and Personal Income Tax (5%) on rental income. Foreign owners must obtain a Vietnamese tax code and maintain detailed documentation for tax compliance. Additional business taxes may apply depending on the scale of operations.
Condos fall under residential property laws with foreign ownership limited to 30% of any building and maximum 50-year leasehold terms. Rental income faces similar Personal Income Tax rates, but administrative requirements are less complex with standard residential property management procedures.
Serviced apartment operators must comply with hospitality industry standards, safety regulations, and potential tourism taxes, while condo owners navigate standard residential rental regulations and homeowners' association rules.
The regulatory complexity makes serviced apartments more challenging to operate but potentially more profitable for experienced property managers familiar with Vietnamese business law.
How do initial purchase prices compare between serviced apartments and condos in central areas?
Purchase prices for serviced apartments consistently exceed condo prices in Vietnam's central districts due to their income-generating potential and premium locations.
Serviced apartments in central Ho Chi Minh City and Hanoi typically cost 10-30% more per square meter than comparable condos, with prime locations commanding premium prices. Central serviced apartment projects can achieve rental rates of $20-$24 per square meter monthly, justifying higher acquisition costs.
Central condos in top-tier projects range from $2,500-$4,000 per square meter, with significant price variations based on building grade, developer reputation, and exact location within the district. Newer developments with superior amenities command higher prices but may offer better long-term appreciation potential.
The price premium for serviced apartments reflects their immediate rental income potential, established management systems, and prime business district locations that attract consistent corporate demand.
Investors should factor in the higher upfront investment against potentially superior rental yields when comparing acquisition strategies for both property types.
What return on investment can you expect from serviced apartments versus condos?
Serviced apartments typically generate higher gross rental yields but face increased operating costs that impact net returns compared to condos in Vietnam's major cities.
Serviced apartments achieve gross rental yields of 7-8% annually due to premium rents and high occupancy rates. However, operating expenses including staff salaries, utilities at commercial rates, and comprehensive maintenance reduce net yields to 4-6% depending on management efficiency.
Condos deliver gross rental yields of 5-7% with lower operating costs, resulting in net yields often matching or slightly trailing serviced apartments at 4-5%. Condos offer potential for long-term capital appreciation, especially in established developments with strong developer reputations.
The choice between property types depends on investment strategy: serviced apartments for immediate cash flow generation versus condos for balanced income and appreciation potential over longer holding periods.
Market conditions in September 2025 favor both property types, with Vietnam's growing expatriate population and foreign investment supporting rental demand across segments. It's something we develop in our Vietnam property pack.
How easy is it to resell serviced apartments compared to condos?
Condo resales significantly outperform serviced apartments in terms of market liquidity and buyer demand in Vietnam's secondary property market.
Serviced apartments face limited resale markets, primarily appealing to investors or hospitality operators seeking established rental portfolios. Small independent serviced apartment buildings encounter particular challenges due to operational complexities and specialized buyer requirements.
Condos enjoy broader resale appeal among domestic and foreign buyers, families, and individual investors. Prominent developments with strong amenities and prime locations maintain active secondary markets with relatively quick transaction cycles.
The specialized nature of serviced apartment operations limits potential buyers to those with hospitality management experience or institutional investors, while condos appeal to diverse buyer segments including end-users and investment buyers.
Resale considerations should factor heavily into investment decisions, with condos offering superior exit strategy flexibility despite potentially lower rental yields during the holding period.
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What amenities do tenants expect in serviced apartments versus condos?
Amenity expectations differ substantially between serviced apartments and condos, directly impacting rental pricing and tenant satisfaction levels.
Serviced apartment tenants expect comprehensive hospitality-style services including daily or weekly housekeeping, 24/7 concierge service, gym access, swimming pool, business center, and laundry facilities. Premium properties include spa services, restaurant facilities, and personal shopping assistance.
Condo tenants typically expect basic building amenities such as security, parking, gym, and pool access, but arrange additional services independently. The amenity package influences rent levels but isn't bundled into the base rental price like serviced apartments.
The all-inclusive nature of serviced apartment amenities justifies premium rents but creates higher operational overhead, while condo amenities provide value without the comprehensive service expectations of hospitality-style properties.
Tenant satisfaction depends on matching amenity expectations with property offerings, making market positioning crucial for both property types in Vietnam's competitive rental landscape.
How flexible is the rental market for short-term stays in serviced apartments versus condos?
Serviced apartments dominate Vietnam's short-term rental market with superior flexibility and regulatory compliance compared to condos.
Serviced apartments accommodate lease terms ranging from daily stays to several months, making them ideal for business travelers, temporary assignments, and expatriate relocations. This flexibility commands premium rents but attracts consistent corporate and individual demand.
Condos face increasing restrictions on short-term rentals, with many buildings prohibiting rentals under 6 months and local regulations limiting Airbnb-style operations. Traditional condo leases favor longer commitments with standard 6-12 month minimum terms.
The regulatory environment in September 2025 increasingly favors licensed serviced apartments for short-term accommodation over informal condo rentals, creating competitive advantages for properly operated serviced apartment properties.
Investors seeking short-term rental income should prioritize serviced apartments over condos to ensure regulatory compliance and operational flexibility in Vietnam's evolving rental market. It's something we develop in our Vietnam property pack.
How do location preferences differ for serviced apartments versus condos?
Location strategies for serviced apartments and condos reflect their distinct target markets and tenant priorities in Vietnam's urban landscape.
Serviced apartments concentrate in central business districts including District 1 in Ho Chi Minh City and Hoan Kiem/Ba Dinh in Hanoi, prioritizing proximity to embassies, corporate offices, international schools, and transportation hubs. Industrial park areas like Binh Duong and Dong Nai also support serviced apartment demand from manufacturing executives.
Condos succeed in both central and emerging suburban areas including District 2, District 7, and Thu Duc in Ho Chi Minh City, plus My Dinh and Ciputra in Hanoi. These locations balance accessibility with residential amenities like schools, shopping centers, and family-friendly environments.
The location premium for serviced apartments centers on business convenience and expatriate lifestyle amenities, while condo locations emphasize residential community features and long-term liveability factors.
Rental demand patterns show serviced apartments achieving consistent occupancy in prime business locations, while condos benefit from broader geographic distribution and diverse neighborhood appeal across Vietnam's major cities.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Serviced apartments offer higher rental yields and occupancy rates but require greater initial investment and operational complexity.
Condos provide better resale flexibility and lower operating costs while appealing to broader tenant segments for long-term stability.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Sources
- VN Rent Home - Serviced Apartments Ho Chi Minh City
- JHouse - What is a Serviced Apartment
- JHouse - Serviced Apartments and Condominiums Thao Dien
- Move and Stay - Monthly Rent in Ho Chi Minh City
- Fazwaz - Condo for Rent Vietnam
- VnExpress - Hanoi Mid-Priced Serviced Apartment Rents Soar
- VietnamNet - Vietnam Tourism Market Rebounds
- RP Realty Plus - Renting Homes Increasingly Popular in Vietnam
- EmerHub - How to Buy a Condo in Vietnam
- ASEAN Briefing - Tax Obligations Non-Resident Property Owners Vietnam