Office absorption stays stable in Hanoi: CBRE

Hanoi (VNA) – Strong demand will ensure stable absorption of office space in Hanoi in the second half of 2022, according to real estate services firms CBRE.

CBRE experts said rental prices for both Grade-A and B offices in the capital city will also stay stable in H2.

Three Grade-A office projects and two Grade-B ones will be unveiled in the last six months, they said, noting that most of new supplies will come from outlying areas.

Total office supplies in H1 surpassed 1.6 million square metres, 38% of which were from Grade-A projects.

Despite limited supplies, more than 20,000 square metres of offices were rented during the reviewed period, and most of the absorbed space belonged to Capital Place – a Grade-A project in Ba Dinh district.

Following the improvement trend in the previous quarter, rental prices in Q2 continued to increase. They stood at 28.7 USD per spare metre each month for Grade-A offices, up 4% quarter on quarter and 5.8% year on year; and at 14.3 USD for Grade-B ones, up 1.8% quarter on quarter and 2.6% year on year, according to CBRE.

The office vacancy rate in Q2 declined to 16.6% among Grade-A offices, down 2.3% quarter on quarter and 4.5% year on year, and to 10.4% among Grade-B ones, down 0.3% quarter on quarter and 1.3% year on year.

Such sectors as information technology, banking, finance, and insurance still took the lead in the office market when they accounted for 37% of total transactions in Hanoi.

Many of the transactions were made by domestic real estate companies that opened new offices in the city. Particularly, the co-working space market rebounded as they made up 17% of total transactions in H1, CBRE found./.