As reported by Cushman & Wakefiekd Hanoi, the price of class B office for lease dropped by around 10 percent in the first quarter due to the negative impact posed by the global financial crisis.
Amid the fact that the real estate market gets warmer following the recovery of the securities market, Hanoi’s office for lease market is suffering gloominess. The office leasing price has fallen by about 20- 25 percent in comparison with late 2008. Experts say the situation may remain gloomy as the price may suffer another 10 percent down by the end of the year, especially in class B offices.
The leasing price offered for class A central office is between US$40 and 60 per month. The office leasing price of 63 Ly Thai To building almost stays the same compared to many others. However, the increase in available rate of class A office is not as strong as that of class B office, by 1 – 3 percent.
Truong Chi Kien – General Director of Cushman & Wakefield Hanoi said the leasing price fall most in class B buildings, by around 30 percent compared to late 2008. The leasing price was around US$22 – 35/month in the first quarter of 2009.
Nevertheless, the office leasing price tends to further fall down due to the big supply together with inconsiderable demand. Additionally, due to the current price competition, the office leasing demand is only the movement from a building to another.
The offering price has remarkably been reduced in the market. Take an example of a coming soon building, BIDV Tower, where its investor initially expected an offering price of about US$70 per month, however, the current offering price of this class A building is US$55 -60 per month (tax excluded).
Another class A building, Capital Tower, is planning to provide more than 22,700 sqm to be offered at about US$40 – 45 per month. Ressco Building at No, 527 Kim Ma, which is under completion, shall be put into use offered at about US$32 – 38/sqm (VAT excluded). This building is opposite to Deawoo Hotel offered at US$46 (tax and service fees included).
The leasing price of Vinaconex Tower in Lang Ha street averages at US$28/sqm/month (tax excluded). Then, the offering leasing prices of class A, class A and class C buildings are around US$45/sqm/month, more than US$30/sqm/month and US$12/sqm/month in average, respectively. New leasing price platform has been set up, about 20 percent lower than that in early 2009.
Many real estate experts say the leasing price will fall deeper, especially in Hochiminh city where the leasing price is lower than in Hanoi. This situation is contrary to late 2008 as the price pressure in Hochiminh city has been lessened due to bigger new supply.
Luong Tuan
Vietnamese
