Hanoi to add 19,247sqm of new office supply by Q4 | Real Estate Asia
, Vietnam

Hanoi to add 19,247sqm of new office supply by Q4

And rents are expected to grow by 1.2%.

According to a JLL report, the Hanoi Grade A office market should be welcoming 19,247 sqm (NLA) from Techcombank Tower in 4Q22, bringing total stock to about 575,400 sqm (NLA). 60% of the space in this building is reportedly for owner-use. 

“Net absorption in 4Q22 is expected to be strongly driven by the new completion. A wave of new supply should be incoming in 2023, with four new buildings in both the CBD and non-CBD areas,” the report added.

Here’s more from JLL:

Given high expectations for the Techcombank building, rental value is projected to increase by 1.2% q-o-q in 4Q22. In 2023, this is expected to increase by 3.6% y-o-y due to the introduction of high-quality new supply. In the meantime, landlords in existing buildings are likely to maintain stable rents to keep their tenants, in the midst of a very competitive market.

Capital Place drives 3Q22 net absorption

Net absorption continued to increase, reaching about 7,000 sqm (NLA) in 3Q22, driven by large absorption in the Capital Place building. Capital Place reported the most notable leasing transactions, such as the 700-sqm office of Lazada and the relocation coupled with expansion of a services firm.

Office buildings in the non-CBD area recorded an increase in vacancy as some of the buildings were older and no longer fit tenant requirements. Tenants tended to choose other new Grade B buildings in the vicinity, which had much lower rents.

Only Techcombank building is scheduled to open in 2022

There was no new supply of Grade A buildings coming online in 3Q22. The Hanoi Grade A office market is expected to welcome Techcombank Tower, scheduled to open by the end of 2022. On the other hand, due to issues faced during construction, Lancaster Luminaire will be delaying its launch to the beginning of 2023.

The vacancy rate in the Hanoi Grade A office market recorded 15.7% in 3Q22, a decrease of 1.3% q-o-q and 3.7% y-o-y, mostly due to strong take-up in Capital Place. Meanwhile, most long-standing buildings continued to maintain their vacancy levels. It is estimated that there are 7 out of 20 active Grade A buildings that could offer more than 1,500 sqm (NLA) vacant space in 3Q22.

Capital Place pushes up overall rents

Capital Place, the first LEED-certified Grade A office building in Hanoi, had been increasing rents after achieving a sufficient occupancy rate, and this helped to push up the average rent in the Hanoi Grade A office market to USD 28.3 per sqm per month, an increase of 1.2% q-o-q and 5.7% y-o-y.

On the other hand, International Centre has decreased its asking rental price by 15% for office space on the 2nd and 3rd floors, to fill vacancy.

 

Follow the link for more news on

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.