Hanoi's Office for Rents Prices Slump in Q2: CBRE Vietnam

Prices of offices for rents plunged in the second quarter of this year, CBRE Vietnam, a property consulting company said in a latest report.

 

CBRE Vietnam attributed the slump to declines in construction materials and equipment imports as industrial production grew a slower pace and may last for several quarters, which will have impacts on capital amounts for the realty market. 

 

It specified further that rents of grade A offices fell 5.6 per cent to US$46/sq.m/month while those of grade B dropped 19.1 per cent to US$26/sq.m. “The drop in grade B rents comes from the lower rents of newly-built buildings and vacancies of those offices”, the CBRE said.

 

Rentals for serviced apartment and hotels dropped to US$28.77/sq.m, down 12 per cent on-year while occupancy rates of five-star hotels fell to 50 per cent, down 15 per cent on-year due to the reduction of foreign visitors arrivals amid the global economic downturn, CBRE’s director Mare Townsend said.

 

Meanwhile, low-cost offices for rent rose 12 per cent on-quarter as the government is continued providing soft loans as part of stimulating demand, the firm said. (VNA)