» » Office rent in Hanoi declines in Q1

Office rent in the capital city of Hanoi witnessed a continuing decline in the first quarter of this year, said CB Richard Ellis Vietnam Company (CBRE).

In a report released last week, CBRE said that grade A office rent dropped 8% to US$49 per square meter compared to late last year. Meanwhile, grade B saw 5% drop to US$33 per square meter.

Due to financial problems, customers paid more attention to grade C office buildings mostly on Nguyen Phong Sac Street in Cau Giay District. CBRE said that Hanoi may have some 100,000 square meters more of grade A and 13,000 square meters more of grade B office space this year.

* Luxurious housing projects in the capital city has also reduced by 4% to 8% in prices, even 20% or 30% in the first quarter due to negative impacts of the global economic crisis.

Property trading in Hanoi has also declined, especially at the high-class projects. However, CBRE said that the projects may see stabilized prices within the next two or three years as supplies will stay low.

House rental charges have also decreased by between 3% and 20% against the last quarter of 2008 due to competition among investors.

CBRE said that the demand for rental service will come down in the coming time as multinational companies will carefully consider development plans and tighten budgets due to the economic crisis. As a result, local investors should improve their services or launch a variety of products to meet customer demands.

By Ngoc Lan and Thoa Nguyen - The Saigon Times

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