Office rents went up in Ho Chi Minh City and Hanoi, Vietnam’s two largest metropolises, in the second quarter this year due to tight availability, and this trend is predicted to continue in in the short and medium terms, Cushman & Wakefield (C&W), a leading global real estate services firm, has said in a report.Average asking rents trended upwards continually in HCM City, rising 9% quarter-on-quarter (QoQ) and 18% year-on-year (YoY) due to the increase in rent of buildings in prime locations with limited vacant space for lease, the firm said.
Office segment in HCM City in Q2. Source: C&W
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Substantial space was absorbed during the quarter, 84% of which happened in grade B buildings, whilst absorption in grade A was minimal due to tight availability, it added.
Similarly, rents for both grades in Hanoi rose between April and June. Grade A recorded rental increases of 4.1% QoQ and 8.0% YoY due to the exit of a lower-rent project which was regraded to grade B. Meanwhile, grade B had modest increases of 0.7% QoQ and 2.5% YoY.
Similarly, rents for both grades in Hanoi rose between April and June. Grade A recorded rental increases of 4.1% QoQ and 8.0% YoY due to the exit of a lower-rent project which was regraded to grade B. Meanwhile, grade B had modest increases of 0.7% QoQ and 2.5% YoY.
Office segment in Hanoi in Q2. Source: C&W
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Cushman & Wakefield predicts that rents in Hanoi will soon be half of that in Ho Chi Minh, which is an opportunity for the capital to grow at a large pace as office real estate becomes extremely expensive in the southern hub, the company noted.
