Ms. Hoang Nguyet Minh - Senior Director, Savills Hanoi Commercial Leasing Department - recently said that at the end of 2024, the unit conducted a survey with nearly 500 businesses currently tenants at Grade A and Grade B offices.
This activity aims to better understand the demand of the office market in 2025-2026.
Accordingly, regarding the selected office location, if previously the main source of demand was for Hoan Kiem district (Hanoi), now the first priority location is Ba Dinh and Cau Giay districts (Hanoi).
Notably, the rate of tenants interested in Hoan Kiem district has decreased from 45% in 2021-2022 to about 25% in 2024.
According to experts, with a large supply spread across the districts, to keep up with the trend and maintain the occupancy rate, investors need to be flexible in business problems and leasing policies, even supporting tenants to invest in completing furniture.
Many tenants can sign cooperation management and operation contracts with service offices and coworking spaces (shared office system chain), thereby having more utilities to provide to tenants.
Ms. Hoang Nguyet Minh predicts that with a large supply, the office market in 2025 will be a tenant market.
The market with more new supply will increase the competitiveness of investors in terms of rental prices, building quality, and rental incentives, thereby increasing the occupancy of the building.
Also according to information from CBRE Vietnam, the office market in Hanoi recorded a higher absorption area in the B-class segment, reaching nearly 45,000m2 - double the absorption area of 22,760m2 recorded in class A, due to good rental policies.
Throughout 2024, the office market in both Hanoi and Ho Chi Minh City witnessed a change in absorption volume with a slight increase.
In the next 3 years, CBRE Vietnam forecasts that the supply of offices is expected to reach nearly 170,000m2 in Hanoi and more than 100,000m2 in Ho Chi Minh City.
By 2030, this figure could reach more than 600,000m2 in Hanoi and more than 300,000m2 in Ho Chi Minh City ( provided that projects are granted timely licenses), which will increase competitive pressure in the office rental market.
