More than 93,000 sq.m of international Grade A office is ready to arrive into the office market
Hanoi’s office rental market is facing opportunities as well as challenges never seen before due to the impacts of COVID-19. The shortage of supply in the Grade A office segment in terms of both quality and quantity means that the average office rental fee in Hanoi is expected to continue increasing, according to Savills Vietnam.
Grade A office rental fee continues to increase, in contrast to the general trend
In Hanoi, the market records an increase in the price of the office segment in Q1 2020, due to the shortage of supply. JLL’s Q1 report shows that the rental fee for Grade A office slightly increased by 0.6% compared to Q4 2019 and increased by 5.8% compared to Q1 2019.
Noticeably, the report also shows that Q1 2020 records a higher rate of price increase in Grade A office compared to Grade B office (Grade B shows almost no increase), whereas, in previous quarters, Grade B office achieved higher rates. The reason behind this is due to the scarcity of Grade A office and high occupancy rates.
According to Savills Vietnam, Hanoi’s office market in the last two years stayed stable with an average capacity of 93%. Currently, the supply for Grade A office segment remains modest with only around 500,000 sq.m of floor areas out of the total office floor area of 1.8 million sq.m. It is easy to point out that there is a lack of choices for this segment, as most of the Grade A buildings are now old with out of date facilities and infrastructure conditions not improving.
Despite the impacts in the short term due to the global pandemic, Vietnam’s economic prospects remain fairly positive. According to the latest forecast about GDP growth in 2020 by ADB, Vietnam is expected to reach 4.8%, higher than other countries in the region.
According to Savills Vietnam forecast, the rental fee for Grade A office in Hanoi is expected to maintain an increase of 7%/year for the next three years. Therefore, it will be a wise decision for companies to find office space at the earliest time when the building is in the pre-opening phase.
Capital Place quenched the thirst for Grade A offices
Meeting the needs of office rental customers on location, performance, quality of operation, and sustainability, Capital Place is expected to go into operation at the end of 2020, providing more than 93,000 sq.m of international Grade A office for lease.
Capital Place's twin towers take inspiration from the Thang Long dragon soaring magnificently across the sky - a symbol of Vietnam's cultural heritage, representing the strength of its people. With 37 floors, the building can meet the needs of small and medium-sized enterprises as well as multinational corporations.
Towering above the Lieu Giai and Van Cao street, Capital Place is located in the heart of Ba Dinh District, one of the most bustling business areas of the capital, and home to the Embassy of Japan and the Embassy of Australia.
Capital Place is the first office building in Hanoi to achieve a LEED Gold Certification, a prestigious certification that is globally recognised as a symbol of sustainability achievement and leadership. The green and verdant landscape provide lush spaces for office workers to relax, creating a sustainable working environment. Across the two towers, 32 high-speed elevators run at 6m/s, assigned to individual zones to reduce waiting time for guests. Capital Place’s leasable office spaces feature one of the largest column-free floor areas to help optimise space and design efficiency. With standard acoustic raised floors and inter-floor connectivity, Capital Place offers a smart and efficient solution for multi-floor offices.
Capital Place was awarded The Best Office Development in Asia at the Asia PropertyGuru Awards 2019 in Bangkok. Along with that, the building has received multiple other prestigious awards at the Vietnam Property Guru Awards 2019: Best Office Development, Best Office Architectural Design, Best Universal Design Development, and highly commended for Best Green Development.
Currently, Capital Place is finishing and ready to welcome customers from the third quarter (Q3) of 2020.
For detailed information, please visit:
Hotline 1800 9289