Many options to rent offices in Hanoi in the second half of the year

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According to CBRE Vietnam, from the second half of 2021, the Hanoi office market is expected to receive new supply from 10 projects.

Lotte Mall Hanoi project. (Photo: Hoang Huy).

CBRE Vietnam’s real estate market report in the second quarter of 2021 said that in the second half of the year, the Hanoi office market is expected to receive a new supply of about 180,000 m2 of new floors from 5 projects.

In which, the Techno Park Tower project, invested by Vinhomes Joint Stock Company (Code: VHM) contributes 90,000 m2 of floor space. This project is located in Vinhomes Ocean Park urban area (Gia Lam).

HUD Tower in Thanh Xuan of Housing and Urban Development Investment Corporation (HUD) also contributed 48,000 m2 of floor space in the second half of this year; Vinacomin Tower in Cau Giay invested by Vietnam Coal and Mineral Industries Group (Vinacomin) contributes 38,000 m2 of floor space.

The remaining two projects include BRG Tower in Hoan Kiem district of BRG Group with a supply of 5,000 m2 of floor space; Intracom Riverside in Dong Anh is invested by Infrastructure and Transport Investment Joint Stock Company (Intracom), contributing 22,000 m2 of floor space.

Besides, from 2022 onwards, Hanoi is expected to welcome more than 150,000 m2 of floor space from 5 other projects, including Lancaster Luminaire in Dong Da (Trung Thuy Group, 20,600 m2); project 36 Cat Linh in Ba Dinh (16,000 m2); Epic Tower at Cau Giay (25,000 m2); Lotte Mall Hanoi (45,000 m2) and The Valley Smart Building in Nam Tu Liem (39,500 m2).

Source: CBRE Vietnam

In the second quarter, the vacancy rate in the Hanoi office market continued, despite an improvement compared to the previous quarter, but remained at a relatively high level. In which, the vacancy rate of Grade A segment continued to decrease but was still quite high at 18.9%. The Grade B segment was more active with the vacancy rate dropping to 11.5%.

The average rent in the second quarter for Grade A office space was $26.9/m2/month and grade B was $14.0/m2/month, unchanged from the previous quarter.

In the first half of the year, the trend of shrinking and paying rent in Hanoi has decreased significantly compared to the same period last year, from 17% of total transactions in 2020 to 0%.

Source: – Translated by