Connect with us
CGIF-10th-Year-Anniversary

Vietnam

Office-for-lease market ready to take off in Hanoi and Ho Chi Minh City

The Grade A office segment in the downtown area of these two cities has a rental occupancy rate of over 95 per cent

Avatar

Published

on

According to real estate services firm Savills Vietnam, in 2017 Hanoi and Ho Chi Minh City continued overtaking other cities around the world to top the list of cities with the most attractive office rental returns.

The Grade A office segment in the downtown area of these two cities has a rental occupancy rate of over 95 per cent.

Location is becoming secondary to facilities and services

A survey by Prime Benchmark showed that in the second half of 2017 the rental rate for high-end office space in Hanoi and Ho Chi Minh City were reported at $38.8 and $52.2 per square metre, significantly lower than neighbouring markets like Taipei (China), Sydney (Australia), Singapore, Seoul (South Korea), and Shanghai (China).

The high office occupancy rate, meanwhile, is due to the market size that is still much smaller than other regional markets. To be specific, the office rental market in Hong Kong (China), Singapore, Japan or Korea are some 7-10 times bigger.

Nguyen Bich Trang, director of CBRE Vietnam’s Hanoi Branch, noted that the growth rate of the office leasing segment depends on a number of factors, including the new supply of office properties, foreign investment, and the quantity of available office buildings. However, in the past years, foreign investment in the local real estate sector has chiefly fallen into the residential segment and hardly went into office buildings.

According to Trang, foreign investors are not interested in the office leasing space as the segment has a surplus of office buildings as a result of a supply boom back in the 2014-2016 period. Yet in 2017, the office leasing segment has been showing positive signals.

“2017 has been a year that will absorb the supply of office properties and 2018 will be a stepping stone for the segment to bloom during 2019-2020,” Trang said.

Shifting demands

It is worthwhile to note that the office leasing market in Vietnam has witnessed a shift in supply in 2017, as tenants have moved to new office buildings to get better services and amenities, while rental rates are not significantly…

Source link

Comments

Vietnam

Foreign capital still heads to Vietnam

As many as 798 projects added a combined over 5.11 billion USD to their investment capital, down 23 percent year-on-year in project number but up 6.8 percent in value.

Avatar

Published

on

Hanoi (VNA) – The total amount of foreign investment poured into Vietnam this year to September 20 reached 21.2 billion USD, equivalent to 81.8 percent of the same period last year, reported the Ministry of Planning and Investment.

(more…)
Continue Reading

Trade

Why Vietnam Has Become a Promising Alternative for US Businesses in Asia

Vietnam Briefing discusses trends in the Vietnam-US relationship, growing economic ties, and how US businesses can leverage and benefit from moving their production to Vietnam.

Avatar

Published

on

Following four decades since the end of the Vietnam War, Vietnam’s relationship with the US has changed significantly.

(more…)
Continue Reading

Cambodia

CLMV’s economic growth crashes to two-decade low due to COVID-19

The COVID-19 crisis has caused the rate of economic growth in the CLMV bloc to be at its lowest in two decades, the CLMV economies could grow at 3.4 percent this year

Avatar

Published

on

The COVID-19 pandemic is having a negative impact on CLMV economies through their dependency on foreign-sourced revenue from tourism and exports says KResearchCenter.

(more…)
Continue Reading
Advertisement

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,520 other subscribers

Trending