According to the Savills Vietnam's report on the Hanoi property market for the second quarter of this year, the total occupancy was approximately 77,000 square metres, increasing 14.2% quarter-on-quarter (QoQ).

The demand in the secondary areas increased significantly by 175% QoQ due to the entry of two new projects: Gelex Tower and Coalimex Building, it said. There was also significant improvement in Thanh Xuan and Dong Da districts, which were up 25% to 35% QoQ this quarter.
 

On a year-on-year (y-o-y) basis, Grade B reported better performance with a slight 1.6% increase. Grade A, on the other hand, recorded a dr-op of 6.2% over the same period. Average asking rents stood at US$30.4 per square metres per month for Grade A buildings, and US$18.4 per square metres per month for Grade B buildings.

Savills Vietnam said, in the second half of 2014, 85,000 square metres from five projects in the secondary area are expected to be online. The largest project will be Lotte Center Hanoi, with approximately 45,000 square metres of space.

Up to 2016, 27 projects with more than 500,000 square metres at 36% of the total current stock will enter the market. All are under construction or being furnished. However, five projects supplying over 60,000 square metres have been delayed for several quarters.