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Abundant supply means office rental market belongs to tenants: report

Update: December, 31/2012 - 09:00

HCM CITY - A tendency for offices in HCM 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 sq.m, but notes that there seems to be a "limited supply" of Grade A offices with floor space of over 1,000 sq.m.

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

Significant projects under construction (Grade A) include Times Square (9,930sq.m), originally scheduled for completion in the fourth quarter of this 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 this year.

In the Ha Noi 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 existing "total stock" was estimated at one million square metres.

This years total new supply in the capital city was estimated at 150,000 sq.m, but predicted to double next year, so "Ha Noi will remain a tenants market."

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

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

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