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.
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…
Vietnam sustains FDI growth amid US-China trade war
Japan was the largest source country, with 429 newly granted FDI projects totalling $8.5bn, MPI figures show
ASEAN seeks measures to push sustainable tourism development
ASEAN members gathered in Vietnamst ouching upon measures to speed up sustainable tourism development.
Nearly 200 delegates, including leaders of national tourism organizations (NTOs) of ASEAN members and the regional groupings partners gathered in Vietnams northern Quang Ninh province on Monday, touching upon measures to speed up sustainable tourism development.
Addressing the meeting, Nguyen Trung Khanh, general director of the Vietnam National Administration of Tourism, said tourism sector makes contributions to better political and cultural understanding, and closer bilateral and multilateral cooperation not only among regional countries, but also among nations in the world.
At the 49th meeting of NTOs of countries of the Association of Southeast Asian Nations (ASEAN) which opened on Monday in Quang Ninhs Ha Long city, the delegates also highlighted contributions of tourism sector to gross domestic product.
Thailand Is Second Most Visited Country In Asia
Thailand attracted second highest number of tourists in the region with 32.58 million visitors in 2016
The Asia Pacific region accounts for 30 per cent of the world’s international tourism receipts
But Bangkok has been engulfed by smog for the past few days, raising questions about how seriously the authorities are taking the air pollution problem in the Thai capital.
Experts warn of the threat to public health if the unhealthy air quality levels persist, urging authorities to enforce mitigation measures to protect people’s health
It has been almost a week since the PM2.5 level in Bangkok rose significantly, forming a thick layer of smog over the city, but authorities are still scrambling to find solutions to help ease the problem
Spraying water over Greater Bangkok’s sky, trying to produce artificial rain haven’t brought any significant results so far.
The Asia Pacific region has outperformed all other regions in terms of growth, with international tourist arrivals increasing an average 7% per year compared to the world average of 4%.
The Asia Pacific region accounts for 30 per cent of the world’s international tourism receipts.
Thailand attracted second highest number of tourists in the region with 32.58 million visitors in 2016.
Source : English.news.cn
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