Ha Noi's Office Performance in the First Half of 2022
After Grade A and B increases, occupancy this quarter improved by 2 percentage points compared to Q4/2021. By the end of 2022, six new projects are expected; the only Grade A building will be Techcombank Tower – 6 Quang Trung, an elite property in Hoan Kiem. This project follows the opening of another international Grade A building, Capital Place.
Ms Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Ha Noi, commented: “Tenants can pick from a variety of new high-quality Grade A properties entering soon, mostly in Hoan Kiem, Ba Dinh and Tay Ho districts. New properties will compete with existing buildings in terms of quality, services, and pricing. Ha Noi’s office supply is lower compared to regional peers like Singapore or Bangkok. However, the rents are lower, the quality is high, and there is great potential for economic growth. These factors mean that foreign investors are still keen on developing projects in the city, creating a healthy outlook for premium office supply.”
Two Main Trends Influencing the Premium Office Market in Ha Noi
According to Ms Minh, leasing decisions are driven by green credentials and if the space can cater to hybrid or agile work.
Certified green buildings in Ha Noi include high-end properties like TechnoPark Tower and Capital Place. New properties like Techcombank Tower - 6 Quang Trung, Gelex 10 Tran Nguyen Han, 36 Cat Linh, and Tien Bo Plaza will have LEED Gold green certificates; Lancaster Luminaire and Taisei Office Building Ha Noi will have LEED green certificates. These properties will add nearly 90,000 m2 of green office space.
Offices in green buildings have a competitive advantage compared to conventional offices in prime locations. This is as these spaces are more than just rooms filled with desks. Therefore, occupiers often feel more productive and are more engaged at work.