The market segment for offices and retail space for lease in Hanoi has seen stable rental prices for grade A and B office buildings in the third quarter of the year. (Photo:VNA)Hanoi (VNA) – The market segment for offices and retail space forlease in Hanoi has seen stable rental prices for grade A and B office buildingsin the third quarter of the year, according to the CB Richard Ellis Vietnam,Co., Ltd (CBRE)- the world’s largest commercial real estate services andinvestment terms.
The rental price of A-class offices was 24.1 USD per square metre per month(excluding taxes and service fees), representing a year-on-year increase of 8.6percent due to limited supply. Meanwhile, that of grade B buildings was 13.7USD per square metre per month, up 1.4 percent from the same time last year.
Notably, there was no new project in the third quarter. The CBRE said that thetotal supply of office for rent was around 1.2 million squares metres as of thethird quarter, including 66 percent of B-class offices.
Occupancy of both grade A and B offices in the period was high, at 89 percentand 84 percent, up 0.1 percentage point and 1.4 percentage points,respectively, from the previous quarter.
Net absorption during July-September was 13,000 square metres. Most of thedemand for offices came from finance, banking, production and real estatesectors that want to branch out business or change offices.
In addition, demands for new working space of both domestic and foreignbusiness have been on the rise.
As new A-class offices will not be rolled out into market until the end of2018, rosy signs are expected for existing buildings in the coming time.
Troy Griffths, Deputy Managing Director of Savills Vietnam, said that officerental fees in Vietnam are rather modest as compared with other regionalcountries. However, the costs are forecast to scale up in medium term as officeoccupancy is nearly full, making it difficult for businessmen to findspace.-VNA
VNA
