According to the real estate consulting firm CB Richard Ellis Vietnam, if all office buildings are completed, the vacancy ratio will rise to 30 percent in Hanoi.
In the recent time, the office-for-lease market became gloomy because of the global economic crisis forcing many international groups to delay the plan of entering or expanding investments in Vietnam for the narrowed payment capacity. Moreover, some domestic companies could build their headquarters by themselves along with a high volume of space for lease, which affected the demand and leasing price band of the real estate market.
Currently, more enterprises joined the tenser competition to attract renters in remaining months of 2009 instead of racing in the high leasing prices. With the goal of fulfilling space, office investors are making efforts to provide many interests to renters.
Investors of both Grade A and B have upgraded buildings (electrical mechanical system, building management building) and provided more interests to the customers like excepting or cutting down rentals in first period, adjusting office rental, offering promotions in furniture décor, stabilise office rentals in 24-36 months, parking free of charge, better service quality, forex rate swap contracts, easier leasing requirements, more professional and transparent marketing strategies. All measures have brought in clear effects.
In Q3, the vacancy ratio of offices Grade B reduced from 22.1 percent of Q2 to 13 percent and Grade A from 2.84 percent to 2 percent. However, factually the office rental generally has slumped sharply.
The offering price of Pacific Place, Sun City and Vietcombank Tower averaged at $48-46 per sqm a month in Q1, $46-55 per sqm a month in Q2 and only $42-52 per sqm a month in September.
Meanwhile, that of Reso and CDC was $35, $30 and below $30 per sqm a month. But most contracts were signed at $20-30 per sqm a month. Big consumers had to spend much time to negotiate renting contracts.
Meanwhile, the new supply of Hanoi is forecasted to surge three times over next three years, of which 65 percent will be in outskirts.
The office buildings with better quality will make increase the pressure on current market and pull down the office rental, and create more options for customers as well. Customers can have more chances to rent bigger space and the rental will return to the level of 2006.
As estimated, in Q4, there will be 70,000 sqm of offices Grade A and B being marketed. In which, Bidv Tower at No 194 Tran Quang Khai St has 16,000 sqm, Capital Tower at No 109 Tran Hung Dao St with 20,000 sqm, Vinaconex at No 34 Lang Ha St with 10,500 sqm, and CMC Tower with 19,000 sqm.
Over 10,000 sqm of new offices will be offered to the market in 2010, and over 375,000 sqm in 2011-2012.
