Vietnam – Downtown office market heats back up

A tendency for offices in Ho Chi Minh City to move back to the downtown area was discernible in 2012, according to leading commercial real estate services provider Cushman & Wakefield.

The real estate services firm records "existing total stock" at over 1.25 million square meters, but notes that there seems to be a "limited supply" of Grade A offices with floor space of over 1,000 square meters.

It estimates supply of new office space for the year at 220,000 square meters and for this to increase to 230,000 square meters in 2013.

Significant projects under construction (Grade A) include Times Square (9,930sq.m), originally scheduled for completion in the fourth quarter of last year; the 34,400sq.m Lim Tower that is set for completion in first quarter of 2013; and the 9,125sq.m President Palace, which was also to be completed in the fourth quarter of last year.

In the Hanoi market, the office migration tendency was to the west of the city, with demand volumes in general on the decline. The report said a marginal uplift in demand could be seen in 2013 compared to 2012. The capital city's existing "total stock" was estimated at one million square metres.

Last year's total new supply in the capital city was estimated at 150,000 square meters, but predicted to double this year, so “Hanoi will remain a tenants market".

Significant projects under construction include the 21,000sq.m Cornerstone (estimated completion in 2013); 43,835sq.m Lotte Centre Hanoi (estimated completion in 2014); and the 45,261sq.m EVN Twin Tower (estimated completion in 2013).

Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 243 offices in 60 countries and more than 14,000 employees.

VNA

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