The market for leasing offices in Hanoi is expected to brighten in 2015due to expectations of a continued economic recovery, according to CBREVietnam Co Ltd, a foreign property consulting service provider inVietnam.
"In the short term, improved macro-economicconditions should positively impact net absorption, but not necessarilyrental growth," a representative of the CBRE Vietnam said in Hanoi onDecember 4.
Central business district (CBD) locations arestill preferred for renting office space, but not in older officebuildings that have not been renovated and fire-proofed, therepresentative said.
Commercial tenants now see opportunitiesto upgrade from landed property to professional office buildings, asrents continue to become more affordable and landlords offer moreattractive incentives.
"Flexible leasing terms, high qualityservices and new attractive office design are still the keys toattracting and retaining tenants," the representative said.
"In 2015, we don't project any new grade A supplies, and we expect tosee positive net absorption as FDI and economic indicators increase," headded.
Rents are likely to stabilise in mid-town and theCBD, but older CBD buildings and new market entrants in the west willfeel pressure from increased rental costs.
At the same time,grade B supplies continue to come available, with a total net leasablearea of 257,000 square metres to launch in 12 projects in 2015, mostnotably at Handico Tower, HUD Tower and Diamond Flower Tower.
Further, the growth rate of net absorption is expected to be slowerthan that of the new supply, while vacancy rates in grade B buildingswill remain high.
"Delays in construction of several projectsfrom time to time, such as Apex Tower and Mo Market, make the pictureless grim, however, supply still outweighs demand, so we will continueto see pressure on projects in the West and even in older CBD buildingsas opportunities grow in Midtown," according to the official.
CBRE Vietnam also said CBRE recently performed a survey of tall andvery tall buildings in the region. According to the survey, while NYCstill leads the world with 152 "supertall" buildings, Asia has surpassedthe rest of the world in total numbers, despite starting decades laterthan other areas, with some 1800 in 2015, compared to 800 in theAmericas, 200 in the Middle East and 100 in Europe.
As ofSeptember, occupancy rate at the Lotte Center Hanoi's has reached 25percent, with 75 percent of the total 45,000-square metres of officearea in the building remaining available.
According to CBREVietnam, the occupancy rate is quite successful for a new officebuilding that has only opened within the past few months. The rentalcosts in the building are set at 37 USD per sq.m., considered a mediumprice for grade A office space.
Lotte Center Hanoi is amulti-functional complex, including shopping centre, hotel, high-endapartments and grade A office area. It is located in Ba Dinh district,Hanoi, having been built with a total investment of 400 million USD.-VNA
"In the short term, improved macro-economicconditions should positively impact net absorption, but not necessarilyrental growth," a representative of the CBRE Vietnam said in Hanoi onDecember 4.
Central business district (CBD) locations arestill preferred for renting office space, but not in older officebuildings that have not been renovated and fire-proofed, therepresentative said.
Commercial tenants now see opportunitiesto upgrade from landed property to professional office buildings, asrents continue to become more affordable and landlords offer moreattractive incentives.
"Flexible leasing terms, high qualityservices and new attractive office design are still the keys toattracting and retaining tenants," the representative said.
"In 2015, we don't project any new grade A supplies, and we expect tosee positive net absorption as FDI and economic indicators increase," headded.
Rents are likely to stabilise in mid-town and theCBD, but older CBD buildings and new market entrants in the west willfeel pressure from increased rental costs.
At the same time,grade B supplies continue to come available, with a total net leasablearea of 257,000 square metres to launch in 12 projects in 2015, mostnotably at Handico Tower, HUD Tower and Diamond Flower Tower.
Further, the growth rate of net absorption is expected to be slowerthan that of the new supply, while vacancy rates in grade B buildingswill remain high.
"Delays in construction of several projectsfrom time to time, such as Apex Tower and Mo Market, make the pictureless grim, however, supply still outweighs demand, so we will continueto see pressure on projects in the West and even in older CBD buildingsas opportunities grow in Midtown," according to the official.
CBRE Vietnam also said CBRE recently performed a survey of tall andvery tall buildings in the region. According to the survey, while NYCstill leads the world with 152 "supertall" buildings, Asia has surpassedthe rest of the world in total numbers, despite starting decades laterthan other areas, with some 1800 in 2015, compared to 800 in theAmericas, 200 in the Middle East and 100 in Europe.
As ofSeptember, occupancy rate at the Lotte Center Hanoi's has reached 25percent, with 75 percent of the total 45,000-square metres of officearea in the building remaining available.
According to CBREVietnam, the occupancy rate is quite successful for a new officebuilding that has only opened within the past few months. The rentalcosts in the building are set at 37 USD per sq.m., considered a mediumprice for grade A office space.
Lotte Center Hanoi is amulti-functional complex, including shopping centre, hotel, high-endapartments and grade A office area. It is located in Ba Dinh district,Hanoi, having been built with a total investment of 400 million USD.-VNA
