It is estimated that by the end of this year, the market will have additional 200,000sq.m of offices for lease (Photo: vneconomy.vn) It is estimated that by the end of this year, the market will have additional200,000sq.m of offices for lease from seven projects. However, there is no newproject in the capital’s centre.
CBRE said last year, the total supply of office for rent was up to around 1.2million sq.m including 65 percent of B-class offices. The rental price of theB-class offices was 17.8 USD per sq.m a month, posting a 0.6 percentyear-on-year increase. That of A-class offices was 28.5 USD per sq.m a month,representing a 3 percent decrease from the previous year.
The rental price and occupancy rate of offices in the city’s centre has been athigh level due to favourable locations and limited land funds.
Companies with strong financial situations were ready to pay 30-40USD per sq.m a month for A-class offices and 20-30 USD per sq.m a month forB-class offices excluding taxes and service fees.
However, big areas in the centre area’s were hard to find.
Nguyen Hoai An, CBER’s deputy director, said that rental in thecity’s centre was expected to increase due to limited supply, while the westernarea rents might sink due to abundant supply.
Vietnam in general and the real estate market in particular are expected toattract foreign direct investment in the upcoming time thank to the advantagesof stable politics, geographical location and human resources.
The positive signs of the economy could draw attention fromforeign investors to the country and the capital markets, thus making demand ofoffice for lease higher.
Cushman & Wakefield said the competition in the market wouldbe increased due to not only new projects but also to the increase of new typesof offices such as co-working spaces and office-tel.
In term of retail space for lease, Hanoi has around 1.2 millionsq.m, posting 10 percent increase from last year with the launch of two newcommercial centres including Vincom Pham Ngoc Thach and Vincom Plaza Bac Tu Liemwith a total of 45,900 sq.m.
The average rental price of the city’s commercial centres in thefirst quarter of the year was reduced by 7.6 percent from the previous quarter.
According to Savills Vietnam, 12 new commercial centres with atotal area of 158,000 sq.m are expected to be completed this year. All of thecentres are located in the city’s outside centre area in Cau Giay, Thanh Xuanand Ha Dong district. Most of the projects have been integrated intoresidential complex.
The country opened its retail market under WTO’s commitments andhas attracted foreign retailers, causing the fierce competition. Japanese,Thailand and Chinese retailers have expressed increasing attention toinvestments in Vietnam, showing strong development potential in the marketdespite competition.-VNA
VNA
