While the property market has not yet fully recovered, the rental of office building is on the increase. The influx of investments is improving the situation. According to CB Richard Ellis Vietnam (CBRE) Consulting Group, in three years, there will be some 100,000 sq. metres more for lease but this remains insufficient in light of the huge demand.
High rental in Hanoi
Office buildings in Hanoi continue to be scarce although there us some remaining vacant space. Recently, Tay Ho Tay Development Co., Ltd rented 300 sq. metres at Vincom City Tower and Notel Networks group rented 750 sq. metres at Ocean Park building. Most clients are looking for high-class buildings. As a result, the new office buildings such as Bac A, Hoa Binh, 4 Lang Ha, VIT and Opera Business Centre will be fully rented when the buildings are completed in the third and fourth quarters of 2006.
High-class apartments are also in the same situation. The rental of a high class apartments has increased from as much as US$2,200 to US$3,000. Ciputra international living quarters has become the first choice with rentals ranging US$800-1,400 a month and US$900-2,800 for a villa.
Also in Ho Chi Minh City
According to real estate company Chesterton VN, Ho Chi Minh City has 55 office buildings of international standard with a total space of 315,000 sq. metres and rentals of US$14.55-30 per sq. metre/month. Many buildings have the occupancy of 98 per cent, especially in the city centre.
Such buildings as Diamond Plaza, Bitexco, Harbour View, and OSIC are fully occupied. Even the newly built Central Park Building in District 1 is fully rented. Many companies are expanding and new companies are coming. Intel has rented the complete 30th floor of Saigon Trade Centre. A high-rise building of 54floors is under construction to meet the demand.
The rental of apartments is also increasing. The Manor building in Nguyen Huu Canh road is fully occupied even the price hit US$100,000 an apartment and the investor Bitexco was quick to develop a new project in the city centre.
And not only in big cities
In Da Nang, Indochina Land has started the construction of Indochina Riverside Towers (to be completed by second quarter 2008) with an average price of US$1,000 sq. metre. The investor believes that clients will be attracted by surrounding facilities services in an area of 6,564 sq. metres including commercial centre, cafeteria, restaurants, etc., the first high class urban area in the city.
In Nha Trang, Vinpearl international tourist centre is well known due to the recent Miss Vietnam Pageant 2006. On the island, an ancient street in Hoi An style has been built on an area of 6,000 sq. metres with tile-roof houses and over 100 stalls of 14-160 sq. metres each. It is also a high-class shopping area with famous domestic and international brands.
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