Heading to these highlights in the West for a prominent rental space

In the first half of 2024, the West held the largest supply share with 41%, equivalent to 871,836 m2 from 77 projects. The inner city had the second-largest supply with 39%, or 836,157 m2, from 73 projects.??

The Hoan Kiem area - the city centre - had the scarcest supply. The growth rates of office supply vary significantly across different grades. The supply for Grade A increased by 6%, Grade B by 5%, and Grade C by just 1% year-on-year (YoY). With limited supply in the CBD, the relocation trend becomes inevitable. Contributing factors include competitive rental prices and advancements in infrastructure, which further support this shift.?

Regarding the impact of rental prices on the relocation trend, Ms Mai Trinh, MRICS , Associate Director of Commercial Leasing of Savills Ha Noi, explained:

“The shortage of offices in the Hoan?Kiem area drives rental prices up. Meanwhile, the near-central and the western areas still offer a competitive rental rate, which encourages shifting.”

According to Savills' report, gross rent reached VND 534,000/m2/month, up 1% QoQ and stable YoY. Grade A rent reached VND 876,000/m2/month, up 2% quarterly and annually.

Ms Mai highlighted that by 2035, 36 ministries and agencies are set to move their headquarters to the western area of Ha Noi, including Tay Ho Tay in Tay Ho, Bac Tu Liem, and Me Tri in Nam Tu Liem. This large-scale relocation is expected to redirect the workforce and traffic to these areas, enhancing access to public services and the relocating trend. The future supply in the New Urban Area of Tay Ho Tay is substantial. It may compete with districts within the CBD, the near-central, and the West, putting pressure on future rental prices and occupancy rates, particularly for Grade A. Metro Line 3.1's operation from Q3/2024 is expected to support supply and the performance along supply and performance along the line and towards the West.

Discover the diverse Grade A options in the West and seize the opportunity to enhance your office experience.

Taisei Square Ha Noi, crafted by Japan’s premier construction and real estate firm, Taisei Corporation. This building offering unparalleled craftsmanship as well as sophisticated, luxurious, meticulous, and convenient design along with fire safety adhering to Japanese architectural standards. Taisei Square is the premier choice for enterprises seeking efficient, sustainable office and retail spaces in the western region of Ha Noi.

Situated in Cau Giay District, The West stands out as a premier Grade A office building, strategically designed to attract a diverse range of tenants, from IT companies to foreign enterprises and leading Vietnamese corporations. Its prime location and state-of- the-art facilities make it an ideal choice for businesses seeking a high-quality office space that supports growth and innovation. ?

As one of the first Grade A office buildings in Cau Giay, PVI Tower sets the benchmark for premium workspaces in Ha Noi. Strategically located at the intersection of Tran Thai Tong, Duong Dinh Nghe, and Trung Kinh streets, it provides easy access to the CBD, suburbs, and airport. With flexible leasing options and professional services, PVI Tower caters to a diverse range of businesses, making it a prime choice for tenants. ??

Strategically positioned at the intersection of Pham Hung and Xuan Thuy streets, Indochina Plaza Ha Noi (IPH) serves as a central hub connecting the suburbs with the city. IPH offers award-winning office spaces in western Ha Noi, just minutes from embassies, government agencies, and major commercial landmarks like Keangnam, Landmark 72 and Starlake.?

Book a site tour with our Commercial Leasing Team! ??

?? Savills Commercial Leasing | B? ph?n Cho thuê Th??ng m?i Savills (HN): 0948 000 468??