SUPPLY: WELCOMED A NEW GRADE B SUPPLY
In the first quarter of 2025, the Hanoi office market maintained stable supply levels compared to the previous quarter. A minor change was observed in Grade B office spaces, specifically with the addition of ThaiSquare Caliria located in the Secondary area, contributing to a new supply of 10,545 sqm. Conversely, there were no significant changes in the supply of Grade A office spaces. On a year-on-year basis, the market has shown growth in new supply compared to Q1 2024, which saw no new additions. This consistent growth indicates ongoing developer confidence in Hanoi’s office market.
DEMAND: OCCUPANCY RATES WITNESSED A SLIGHT INCREASE
In the first quarter of 2025, both Grade A and Grade B office spaces demonstrated stable performance. Grade A occupancy remained stable, with nearly 75%, increasing by 0.06 percentage points QoQ and a 0.94 percentage points YoY. This growth was primarily driven by demand from the Information Technology and Professional Services sectors. Similarly, Grade B occupancy reached approximately 85% and experienced an increase of 0.21 percentage points QoQ and 0.72 percentage points YoY. The Telecommunications and Banking industries were the main contributors to this growth.
PRICE: GRADE A AND GRADE B SHARED A DIFFERENT PATTERN
Grade A average rent is slightly up by 2.2% QoQ, and up 1.7% YoY, reaching $31.71 per square meter per month, driven by rent adjustments at projects in the CBD. Meanwhile, the Grade B segment recorded decreases in both QoQ and YoY, as landlords applied attractive rental offers and flexible rent strategies to attract occupiers.
OUTLOOK: EXPECTED COMPETITIVE MARKET LANDSCAPE WITH ENRICHED UPCOMING HIGH-QUALITY SUPPLY
From 2025 to 2027, Hanoi's office market is anticipated to experience significant growth, with an expansion of over 366,000 square meters. In response to the highly competitive market landscape, developers are increasingly focusing on introducing future projects that adhere to modern specifications and obtain green certifications. This trend reflects a commitment to sustainability and innovation, aiming to meet the evolving demands of tenants and investors alike.
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