The demand for rented office space in Hanoi increased sharply in thesecond quarter of this year, pointing to a gradual recovery of thedomestic economy, said property experts.
According to the SavillsVietnam's report on the Hanoi property market for the second quarter ofthis year, the total occupancy was approximately 77,000 square metres,increasing 14.2 percent quarter-on-quarter (QoQ).
The demand inthe secondary areas increased significantly by 175 percent QoQ due tothe entry of two new projects: Gelex Tower and Coalimex Building, itsaid. There was also significant improvement in Thanh Xuan and Dong Dadistricts, which were up 25 percent to 35 per cent QoQ.
"Approximatelyhalf of the enquiries received at Savills were for office spaces in thecentral business districts, which were double the enquiries for thewestern and secondary areas," said Savills Vietnam.
"For large office spaces of over 500 square metres, 42 percent of the enquiries were for the western area," they said.
"Affordablerents and attractive incentives from land-lords motivated commercialtenants to move from villa-type offices to professionally managed officebuildings," said the CBRE Vietnam.
According to CBRE Vietnam, average rents continued to decrease across the market, achieving 21.8 USD per square metre per month.
GradeA average asking rents decreased by 3.2 percent q-o-q, while Grade Brents recorded a slight decrease of 0.4 percent Q-o-Q.
On ayear-on-year (y-o-y) basis, Grade B reported better performance with aslight 1.6 percent increase. Grade A, on the other hand, recorded a dropof 6.2 percent over the same period. Average asking rents stood at 30.4USD per square metres per month for Grade A buildings, and 18.4 USD persquare metres per month for Grade B buildings.
Savills Vietnamsaid, in the second half of 2014, 85,000 square metres from fiveprojects in the secondary area are expected to be online. The largestproject will be Lotte Center Hanoi, with approximately 45,000 squaremetres of space.
Up to 2016, 27 projects with more than 500,000square metres at 36 percent of the total current stock will enter themarket. All are under construction or being furnished. However, fiveprojects supplying over 60,000 square metres have been delayed forseveral quarters.
Meanwhile, CBRE Vietnam said that movingforward, projects in the west will be under further pressure to slashrents as there will be enough properties in the market. The averagerents are expected to go down while the vacancy rate will rise.
"GradeA buildings in the city centre will achieve higher occupancy rates astenants have limited options in this segment. However, to compete withnew entrants the older properties will need to renovate and upgrade,"said CBRE Vietnam.-VNA
According to the SavillsVietnam's report on the Hanoi property market for the second quarter ofthis year, the total occupancy was approximately 77,000 square metres,increasing 14.2 percent quarter-on-quarter (QoQ).
The demand inthe secondary areas increased significantly by 175 percent QoQ due tothe entry of two new projects: Gelex Tower and Coalimex Building, itsaid. There was also significant improvement in Thanh Xuan and Dong Dadistricts, which were up 25 percent to 35 per cent QoQ.
"Approximatelyhalf of the enquiries received at Savills were for office spaces in thecentral business districts, which were double the enquiries for thewestern and secondary areas," said Savills Vietnam.
"For large office spaces of over 500 square metres, 42 percent of the enquiries were for the western area," they said.
"Affordablerents and attractive incentives from land-lords motivated commercialtenants to move from villa-type offices to professionally managed officebuildings," said the CBRE Vietnam.
According to CBRE Vietnam, average rents continued to decrease across the market, achieving 21.8 USD per square metre per month.
GradeA average asking rents decreased by 3.2 percent q-o-q, while Grade Brents recorded a slight decrease of 0.4 percent Q-o-Q.
On ayear-on-year (y-o-y) basis, Grade B reported better performance with aslight 1.6 percent increase. Grade A, on the other hand, recorded a dropof 6.2 percent over the same period. Average asking rents stood at 30.4USD per square metres per month for Grade A buildings, and 18.4 USD persquare metres per month for Grade B buildings.
Savills Vietnamsaid, in the second half of 2014, 85,000 square metres from fiveprojects in the secondary area are expected to be online. The largestproject will be Lotte Center Hanoi, with approximately 45,000 squaremetres of space.
Up to 2016, 27 projects with more than 500,000square metres at 36 percent of the total current stock will enter themarket. All are under construction or being furnished. However, fiveprojects supplying over 60,000 square metres have been delayed forseveral quarters.
Meanwhile, CBRE Vietnam said that movingforward, projects in the west will be under further pressure to slashrents as there will be enough properties in the market. The averagerents are expected to go down while the vacancy rate will rise.
"GradeA buildings in the city centre will achieve higher occupancy rates astenants have limited options in this segment. However, to compete withnew entrants the older properties will need to renovate and upgrade,"said CBRE Vietnam.-VNA
