Deadlock office

Consecutive plunge

Market Report of Real Estate services are companies that, for 2 consecutive years, leasing of offices in Hanoi forestry slipping into a state of no brakes.

Savills statistics indicated in the second quarter of 2013, the average power of the office fell 3% in the quarter and down 7% on the year, only 74%. Yet, rents continued to decline in the seventh consecutive quarter, down 1% qoq to 417,000 m2 / month.

According to CBRE, in this quarter segment recorded a Grade A rents decreased slightly by 1%, while class B continues to decline from the previous quarter to 10% reduction.

Accordingly, Grade A office rents about 668 000 VND / m ² / month, and Grade B rents over 354,000 VND / m ² / month. The vacancy rate in Class A buildings by 30% and Grade B buildings average 19%, unchanged from the previous quarter. The change is mainly due to rotation between the buildings tenants together.

Meanwhile, pressure continued excess supply weighs on the shoulders of the investor. About 150.000m ² new office space is expected to be provided in the remaining 2 quarters of 2013.Notably, 71% of the office space is located in the western region, which will continue to put pressure on rents in this area, especially Grade A office segment B.

As of 2015, 54 new office project will provide approximately 713.000m ² office. In particular, new supply by 2015 mainly in the western region, including Cau Giay and Tu Liem with total supply of approximately 269.800m ² , accounting for 38% of new supply in the market.

This makes Cau Giay and Tu Liem has become "frozen" for the office segment, so that the competition has also increased multifold.

Homedirect.com.vn