Friday, September 20, 2019 4:55:32 PM - Markets open
VN-INDEX 990.36 -6.74/-0.68%
HNX-INDEX 104.14 +0.10/+0.10%
UPCOM-INDEX 56.97 +0.27/+0.48%
Ha Noi office and retailHa Noi office and retail competition heating up
Source: VNS - 2/13/2017 9:32:46 AM
 (0 ratings. You must sign in to rate.)
The market segment for offices and retail space for lease in Hà Nội is expected to become fiercely competitive as supply increases.

It is estimated that by the end of this year, the market will have additional 200,000cq.m of offices for lease from seven projects. However, there is no new project in the capital’s centre.

CBRE said last year, the total supply of office for rent was up to around 1.2 million sq.m including 65 per cent of B-class offices. The rental price of the B-class offices was US$17.8 per sq.m a month, posting 0.6 per cent year-on-year increase. That of A-class offices was $28.5 per sq.m a month, representing 3 per cent decrease from the previous year.

The rental price and occupancy rate of offices in the city’s centre has been at high level due to favourable locations and limited land funds.

Companies with strong financial situations were ready to pay $30-40 per sq.m a month for A-class offices and $20-30 per sq.m a month for B-class offices excluding taxes and service fees.

However, big areas in the centre area’s were hard to find.

Nguyễn Hoài An, CBER’s deputy director, said that rental in the city’s centre was expected to increase due to limited supply, while the western area rents might sink due to abundant supply.

Việt Nam in general and the real estate market in particular are expected to attract foreign direct investment in the upcoming time thank to the advantages of stable politics, geographical location and human resources.

The positive signs of the economy could draw attention from foreign investors to the country and the capital markets, thus making demand of office for lease higher.

Cushman & Wakefield said the competition in the market would be increased due to not only new projects but also to the increase of new types of offices such as co-working spaces and office-tel.

In term of retail space for lease, Hà Nội has around 1.2 million sq.m, posting 10 per cent increase from last year with the launch of two new commercial centres including Vincom Phạm Ngọc Thạch and Vincom Plaza Bắc Từ Liêm with a total of 45,900 sq.m.

The average rental price of the city’s commercial centres in the first quarter of the year was reduced by 7.6 per cent from the previous quarter.

According to Savills Việt Nam 12 new commercial centres with a total area of 158,000 sq.m are expected to be completed this year. All of the centres are located in the city’s outside centre area in Cầu Giấy, Thanh Xuân and Hà Đông district. Most of the projects have been integrated into residential complex.

The country opened its retail market under WTO’s commitments and has attracted foreign retailers, causing the fierce competition. Japanese, Thailand and Chinese retailers have expressed increasing attention to investments in Việt Nam, showing strong development potential in the market despite competition.

Newer News
19/08 Rising demands for realty with long-term ownership
08/07 VN to boost professional real estate brokers
07/07 VN to boost professional real estate brokers
24/06 Property market heats up in Binh Phuoc province
19/06 Excitement rises in Vietnam’s real estate
13/06 NVL: Takes expo to introduce a range of projects
09/06 MoC: rules for condotels, officetels coming this year
03/06 Real estate market set for recovery as HCM City streamlines housing regulations
31/05 Real estate market set for recovery as HCM City streamlines housing regulations
29/05 Real estate sector advised to reduce dependence on bank credit
Older News
13/02 HCM City aims for sustainable realty market
09/02 HN to collect VNĐ10 trillion from auctioning land
06/02 Realty market outlook gloomy
03/02 PM urges stronger development of affordable housing
02/02 Experts back retail property sector
21/01 Property market to continue strong showing this year
20/01 M&A helps to jolt real estate
12/01 HN witnesses positive property market development in Q4
11/01 Major realty firms to be inspected
10/01 VN’s average floor area per person is 22.8sq.m
Newsletter Signup
Top Stories
Crude import tax zeroed in November
VN central bank makes first key rate cut since 2017
Total UPCoM firms reach 850 in August
ACV: Gov't should buy back shares from ACV's foreign shareholders: MoT
EU enhances inspections on Vietnam’s agricultural products from Sept 1
Market Update
Last updated at 3:10:00 PM
VN-INDEX 990.36 -6.74/-0.68%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.