Hanoi office supply reaches 2.5m sqm in Q3

Major projects are expected to come online in the near term.

In Q3 2024, the Hanoi office market did not record any new supply. According to an Avison Young report, the total office space reached nearly 2,500,000sqm, with Grade A supply exceeding 500,000sqm and Grade B over 1,500,000sqm. 

Most new supply is concentrated in districts like Cau Giay, Nam Tu Liem, and Thanh Xuan, where significant infrastructure and transportation projects are underway. 

Here’s more from Avison Young:

The development of transportation infrastructure, including ring roads, metro systems, and highway expansions, is improving connectivity within the city, reducing travel times between areas. This has boosted office leasing demand in areas further from the city center, such as My Dinh and Trung Hoa - Nhan Chinh, which benefit from convenient transportation links. 

From 2024 to 2026, Ha Noi is expected to see a strong increase in office supply with numerous new projects nearing completion. Major projects like Tien Bo Plaza and Maslight Tower are expected to come online soon, adding tens of thousands of square meters of office space to the market.

Performance

The office market in Ha Noi in Q3 2024 saw little change compared to the previous quarter across both Grade A and Grade B segments. The average rental rate for Grade A offices reached 35 USD/sqm/month, with an occupancy rate of 86%. For Grade B office space, the average rental rate was 24 USD/sqm/month, with an occupancy rate of 84%. 

Grade A office buildings in central areas, particularly in Hoan Kiem and Ba Dinh districts, continued to maintain high occupancy rates. However, due to the limited availability of land for new developments in these areas, rental prices remain high, ranging from 32 – 41 USD/sqm/month. 

The western part of Ha Noi, including districts like Cau Giay, Nam Tu Liem, and Bac Tu Liem, remains a hotspot for office development. With ongoing infrastructure improvements and the expansion of new urban areas, this region is becoming a prime destination for both domestic and international businesses.