Office leasing momentum continues to reduce

According to the research company Savills Vietnam Real Estate, the average rent capacity of the office market in the quarter reached 85%, up approximately 2% lighter than the previous quarter and equivalent with an increase of quarter 3 of 2009. Although capacity has many signs lease optimistic, but, the office rent tend to decrease rate of 3.6% compared to the fourth quarter of 2009.

The amount of Grade A office rent in the regulations is hardly a significant increase, while Grade B reduced to half. Only grade C achieved the best results.  A series of class A buildings such as Pacific Place, Sun City has bid rent 60 - 65 USD, now have reduced to 42-50 dollars. The Capital Tower was originally planned to be hired about 55-60 dollars, but until put into operation, only 42 USD each m2. No. 4 Lang Ha Building in late 2009 with minimum lease at 33 USD so far reduced to U.S. $ 25-27. Kinh Do Building on Tay Son street from 28-30 dollars so far reduced to 20-22 per m2.

Some Grade C in the area in Nguyen Phong Sac, Trieu Viet Vuong, Le Dai Hanh has the lease from 7-12 dollars bid has attracted more customers asking rent.

Savills’s measures, although the Vietnamese economy has many signs of recovery since late 2009, investing abroad companies are returning to Vietnam, but the needs of an office is very limited. Mr. Tran Nhu Trung, director of research company Savills Vietnam, believes: "The initial impact of regulations prohibiting the use of the apartment business office or commercial shield Grade C is expected Union will have a lot of positive changes in the next quarter" said Trung.

According to Mr. Trung, the forecast expects rents will continue to reduce, but can recover within 12-16 months. Because many lease customers will find flexible hiring new locations in areas outside the center when the power supply in the central area covering the city.

As assessed by Savills, has a market of approximately 610,000 m2 of office space, up 3.5% over the 4 / 2009, including 86 Grade A, B, C, distributed over 10 districts of the city. Two new office buildings in Hanoi Tourism is the Sky City Tower and Tower has added approximately 16,600 m2 of office space to the total power supply. In four years, approximately 1.9 million m2 of office from 120 projects will be available in the market lead to extra power supply status. Among them, the estimated area of the city center is only about 5% of the amount of new supply.