On July 15, Knight Frank Vietnam Real Estate Consulting Company just released press information related to the Hanoi office market in the second quarter of 2024.
Knight Frank Vietnam's latest research shows that in the second quarter of this year, Grade A office rental prices in the capital Hanoi remained at 30 USD/m2/month, thanks to new supply from the Grand Terra building. Just opened at 36 Cat Linh, Dong Da District.
Similarly, the Grade B segment also maintains the price of 15 USD/m2/month, and there is no additional supply. However, Knight Frank predicts that the office vacancy rate will increase in the near future due to new projects entering the market.
Mr. Leo Nguyen - Director of Strategy & Solutions for Tenants of Knight Frank Vietnam - shared: The office rental market in Hanoi is currently a bit gloomy, the demand for site surveys is less than half of the demand. period last year.
"Some new projects that have just come into operation have an occupancy rate of less than 30%, raising many concerns about the market situation. The second half of this year will have more supply from some projects that are about to be completed such as Heritage West. Lake and Taisei Hanoi Office Tower" - Mr. Leo Nguyen said.
According to Mr. Leo Nguyen, to attract tenants, investors need to offer highly feasible rental plans, with many promotions and competitive rental prices. On the other hand, tenants are also actively negotiating to further lower rents in the next 12 months.
According to Knight Frank Vietnam , the vacancy rate in the entire Hanoi office market is still high at 18.4%, an increase of 0.5% compared to the first quarter. This shows that newly inaugurated projects have high growth rates. Net absorption is very slow, and there is still a lot of vacant space at the newly opened Grand Terra building in the second quarter.
Across the city, the vacancy rate in the Grade A office segment is at the highest level of 23.3%, an increase of 1.8% compared to the previous quarter, while Grade B also has a fairly high vacancy rate of 16.6%. %. According to Knight Frank's forecast, by the end of this year, Grade A office space may be up to 30% empty due to additional supply.
It is expected that by the end of this year, Hanoi will welcome two new Grade A office projects, Taisei Hanoi Office Tower in Cau Giay district and Heritage West Lake in Tay Ho district, adding about 46,000 m2 of office space.
In 2025 and 2026, the city will receive more than 90,000 m2 of office space from Tien Bo Plaza projects in Dong Da district, Hanoi Hilton West in Cau Giay district, and Shilla Hotel in Tay Ho urban area. West.
