Hanoi office market has passed its trough and is currently recovering and experiencing an increase in transactions. From limited market occupancy of only 70% - 80%, office market performance has improved significantly.
According to Savills latest publication ‘Vietnam Office Outlook 2018’, average occupancy in Hanoi reached 92% in 2017 while gross rent price reached 35.2 USD/m2/ month, which translated to a 2.6% YoY increase. These figures are relatively high compared with regional peers and demonstrate the positive performance of the Hanoi office market. However, the enormous potential of this market is yet to be seized as the supply of office space in Hanoi is less than 20% of that in Bangkok, Kuala Lumpur or Jakarta. This showcases that the Hanoi office market has ample room for growth and opportunities for office developers.