Demand and rents increase
According to the rental market report of Batdongsan, in the fourth quarter of 2022, the level of interest in rental properties shown through online searches on the system of this unit increased by 103%. Of which, searches for offices increased by 244%, searches for information on renting street-front houses increased by 263%, searches for apartments and boarding houses for rent increased by 57-84% respectively.
Office for rent is still considered an attractive investment channel.
For the office rental segment, the recovery momentum has also been clearly demonstrated through high occupancy rates and slight price increases. In the fourth quarter of 2022, the office rental capacity of the entire Hanoi market increased by 1 percentage point quarter-on-quarter and 7 percentage points year-on-year.
In terms of rental prices, Grade A had the highest rental price, reaching VND852,000/ m2 /month, up 4% quarter-on-quarter and 11% year-on-year. Along with that, Grade B and Grade C rental prices also increased by 6% and 7% quarter-on-quarter, respectively, due to rental price improvements in some projects.
Ms. Hoang Nguyet Minh - Senior Director of Commercial Leasing Department of Savills Hanoi, commented: "About 5 - 7 years ago, the investment cost of a Class A office building only fluctuated around 600 - 700 USD/ m2 , but now to be able to build a Class A building with international standards, the investment cost can be up to 1,000 USD/ m2 , even 1,600 USD/ m2 " .
However, the increase in prices and capacity is not the story of the entire market. In fact, rental prices in the Hanoi office market in 2022 have recorded an increase, but the increase trend is mainly only in high-quality projects.
For example, Peakview Tower Office and Commercial Service Complex. Located in the new administrative center of Dong Da district with 21 floors above ground, 3 basements, high-quality office system, synchronous facilities and equipment, and convenient auxiliary functions such as conference halls, restaurants, etc., Peakview Tower always has a high occupancy rate.
Attractive investment channel
Currently, market demand is still increasing strongly with businesses in a number of industries such as information technology, manufacturing, banking and finance, insurance, etc. These are all segments where customers have very high requirements on technical standards for the offices they rent.
Compared to 2022, the office market in 2023 will continue to record positive activities. Many businesses consider the Vietnamese market a bright spot in the economic development of the Southeast Asian region. Therefore, entering 2023, the office market is still considered an attractive investment channel.
Peakview Tower Office and Commercial Service Complex.
According to experts, office is one of the segments with good investment returns. When the building reaches an average occupancy rate, the profit margin is quite good. In addition, office tenants often sign long-term contracts. Cash flow is therefore kept stable, even in adverse conditions such as epidemics and natural disasters such as the recent COVID-19 pandemic. The representative of the investor of Peakview Tower Office and Commercial Service Complex said that despite the complicated developments of the COVID-19 pandemic, the occupancy rate at Peakview Tower has always been above 90% and has not been affected much.
Therefore, office leasing is always considered a stable investment, especially for investors with good cash flow and financial potential. With a quality supply in the future, experts believe that office rental prices in the capital market will continue to grow.
PV
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