CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Real estate
Office rent in HCM City on upward trend for eight straight quarters: C&W
Linh Pham 10:03, 2019/01/20
Over the year, increasing supply led to positive performance with Grade A rental hitting maximum US$75/sq.m/month.
Average asking rents of offices continued the upward trend for the last eight quarters ending in late 2018, mainly due to the limited space available for lease, according to Cushman and Wakefield (C&W). 
 
Illustrative photo
Illustrative photo
The rent recorded a remarkable increase of 12.2 % in the year, including a modest rise of 1% in the fourth quarter (Q4) 2018. 

Both short and medium forecasts indicate that this rental growth is likely to continue in the coming quarters.

Alex Crane, managing director of Cushman & Wakefield Vietnam, commented: “Vacancy will continue to constrict in the first half 2019. New office buildings will launch in Q2 which will put some incentives back into the market, something that has been missing for the last 12 months.” 

He added that oversupply or new vacancy through two or three high profile buildings in Ho Chi Minh City in 2019 are not sure to give tenants more choice and better cause for relocation. It means that rents across the market will then stabilize before reducing later this year. 
 
Office rental in HCM City in Q4 2018. Photo: C&W
Office rental in HCM City in Q4 2018. Photo: C&W

Sometimes at low vacancy, Grade A buildings have been rent as much as US$75/square meter (sq.m)/month and Grade B at US$40/m2/month. These high-watermark prices will fall by the end of the year and likely stabilize at US$55 for Grade A and circa US$35 for Grade B.
 
Asking rent of offices in HCM City in Q4/2018. Photo: C&W
Asking rent of offices in HCM City in Q4/2018. Photo: C&W
Timing will be key for both landlords and occupiers this year, he noted.

Over the year, increasing supply led to positive performance. The total stock rose 1.9% on quarter and 4.7% on year thanks to the completion of two Grade B buildings. 

As a result, occupancy rates remained high at over 95%. The quarter saw a large proportion of total net absorption attributed to new entrants in the market.
Comments
Other news
22:45, 2025/01/15
Industrial property benefits from surge in high-tech investment
Vietnam is emerging as a strategic destination for major technology firms given its favorable geographic location within the global supply chain.
08:31, 2025/01/15
Vietnam's property market rebounded in 2024, driven by reforms and transparency
Nearly 81,000 units were available for sale in 2024, up more than 40% on year.
22:24, 2025/01/09
Hanoi's new appartment supply triples to highest level since 2020
In 2025, the new supply of apartments in Hanoi is expected to remain robust, reaching over 31,000 units, higher than in 2024.
16:20, 2024/11/20
Hanoi to add nearly 6,000 social housing units by 2025
The construction of social housing in the capital has reached only 9% of the target set in the plan to build one million social housing units by 2025.
16:35, 2024/10/22
New international brands diversify Hanoi hotel offerings
Hanoi's hotel market is also experiencing a decline in rental rates amid the seasonal lull in tourism and leisure activities.
20:57, 2024/10/21
Hanoi set to deliver new luxury apartments this quarter
Over 19,000 new apartments were delivered in the first nine months of this year, surpassing the total supply in 2023.