Blogs

Grade B office rental prices in Hanoi typically depend on several factors, including floor area, location, facilities, and the quality of the office building.

Office space for rent in Thanh Xuan District is an ideal choice for businesses and organizations looking for a professional working environment in a central area of Hanoi.

Office rental prices in Hanoi and Ho Chi Minh City continue to rise as demand increases following the pandemic, prompting many property developers to reduce rental incentives.

On October 23, 2022, a contract signing ceremony was held at Artemis Tower between Vietcombank Thanh Xuan Branch and IMG Investment JSC for the lease of office space in the building. This event marked an important milestone, reinforcing Artemis Tower's position as a trusted choice for major partners in the office rental market.

<p style="text-align: justify;">A recent survey by&nbsp;<a href="http://batdongsan.com.vn/" target="_blank">Batdongsan.com.vn</a>&nbsp;found that office rental prices in Hanoi's high-rise buildings in Thanh Xuan, Cau Giay, Nam Tu Liem and Dong Da - areas with a high concentration of companies, agencies and government offices - increased by an average of 5-10% per m2 compared with the beginning of the year. Not only have rental prices increased, but occupancy rates have also remained high, reaching 80% or more. In particular, occupancy rates for&nbsp;<a href="http://theartemis.vn/">Grade A offices</a>&nbsp;have reached 90% or higher. Office floors in office buildings usually offer a minimum rental area of around 100m2, so these increases have pushed total rental costs significantly higher.</p>

<p style="text-align: center;"><img alt="New Trends in the Office Rental Market" src="/public/upload/images/Boanhchenlogo-03.jpg" style="width: 752px; height: 532px;" title="New Trends in the Office Rental Market" /></p>

<p style="text-align: justify;">Rental prices have increased because businesses have resumed strong operations after the pandemic and the number of newly established companies has grown. According to data from the General Statistics Office, along with the economic recovery, more than 163,300 businesses were newly established in the first nine months of 2022. This was 1.3 times the average number of businesses entering and re-entering the market during the first nine months of the 2017-2021 period. Notably, around 90% of newly registered businesses had a small capital scale of VND 0-10 billion. These businesses often have limited financial resources and therefore tend to look for&nbsp;<a href="http://theartemis.vn/" target="_blank">affordable office rentals</a>&nbsp;to reduce operating costs.</p>

<p style="text-align: justify;">Ms. Hoang Thi Ngoc Diem, an&nbsp;<a href="http://theartemis.vn/" target="_blank">office rental</a>&nbsp;broker in Cau Giay District, said that the number of customers looking for office space has increased sharply since March 2022. This period came after the Lunar New Year, when the economy began reopening following two years of the pandemic. However, as rental prices continued to rise from quarter to quarter, a significant number of customers changed direction. Instead of renting office floors in high-rise buildings, they moved to renting private houses in alleys. Rental prices for private houses are only around one-half to two-thirds of office rental prices, even when the usable area is similar or larger.</p>

<p style="text-align: justify;">For example, according to a survey by Batdongsan.com.vn in western Hanoi, Grade C&nbsp;<a href="http://theartemis.vn/" target="_blank">office rentals in Thanh Xuan</a>, Nam Tu Liem and Cau Giay with an area of around 100-150m2 are priced at VND 22-30 million per month. Meanwhile, private houses with similar, double or even triple the usable area due to multiple floors, located in alleys wide enough for two cars to pass or in older urban areas, are commonly rented for only VND 15-20 million per month.</p>

<p style="text-align: center;"><img alt="New Trends in the Office Rental Market" src="/public/upload/images/shophouse-01.jpg" style="width: 750px; height: 500px;" title="New Trends in the Office Rental Market" /></p>

<p style="text-align: justify;">According to Ms. Ngoc Diem, many private houses in Thanh Xuan available for office use have floor areas of 50-70m2, with 4-5 floors and total usable areas of 250-350m2. Entire houses are currently rented for VND 18-25 million per month, while office space with the same total area in high-rise buildings can cost two or three times as much. “The number of customers asking to rent private houses for office use has increased sharply by 40-50% compared with the same period last year, mainly startups and SME businesses,” Ms. Ngoc Diem emphasized.</p>

<p style="text-align: justify;">Sharing the same view, Mr. Vu Van Hong, an office broker in Nam Tu Liem District, said that around half of the customers asking him to find office space, mainly small businesses, are also considering private houses instead of office floors in high-rise buildings. However, according to Mr. Hong, private-house offices have several disadvantages compared with office buildings, including a lack of consistency in facilities, services and security, as well as a serious shortage of parking spaces, especially for cars.</p>

<p style="text-align: justify;">While acknowledging the disadvantages of using private houses as offices, Ms. Diem pointed out several advantages compared with high-rise office buildings. These include lower rental prices, fewer restrictions from building regulations and no need for tenants to deal with elevator congestion, which remains a common problem in many office buildings.</p>

<p style="text-align: justify;">According to brokers, demand for private houses used as offices is expected to continue growing in the coming period as the number of newly established businesses continues to rise. This segment is expected to maintain average growth of around 5% per quarter for newly signed rental contracts. In the future, shophouses and adjoining houses in urban areas are expected to become more popular rental choices because of their more consistent facilities and supporting services.&nbsp;<br />
&nbsp;</p>

<p style="text-align: justify;"><em>Source: Nguyen Nam - Batdongsan.com</em></p>

<p style="text-align: justify;">Corporate clients looking to&nbsp;<a href="http://theartemis.vn/" target="_blank">rent large office spaces</a>&nbsp;with stable rental rates can contact&nbsp;<a href="http://theartemis.vn/" target="_blank">Artemis Tower</a>&nbsp;today.</p>

<p dir="ltr" style="text-align: center;">Contact details:</p>

<p dir="ltr" style="text-align: center;"><strong>ARTEMIS TOWER&nbsp;</strong></p>

<p dir="ltr" style="text-align: center;">Address: No. 3 Le Trong Tan Street, Khuong Mai, Thanh Xuan, Hanoi</p>

<p dir="ltr" style="text-align: center;">Phone: 0911 422 911</p>

<p dir="ltr" style="text-align: center;">Contact: marketing@mhl.vn | Website: www.theartemis.vn&nbsp;|&nbsp;<a href="https://www.facebook.com/ArtemisOfficeForLease" target="_blank">Artemis Office For Lease</a></p>

In recent years, businesses have increasingly moved to areas outside the city center, leading to rapidly growing demand for office rentals in these surrounding areas. Among them, Thanh Xuan District is currently one of the districts with the fastest-growing office rental markets.

Speaking at the recent seminar “The Real Estate Market in the First Months of 2022,” experts from Savills Hanoi noted that, thanks to Vietnam’s flexible and resilient economic recovery since the beginning of the year, the office and commercial space rental market in Hanoi

Demand for Grade A office space in Hanoi has increased, while limited supply has pushed rental prices up by 4% quarter-on-quarter and year-on-year, reaching their highest level in the past 10 years.

COMMEMORATING THE 77TH ANNIVERSARY OF THE SUCCESS OF THE AUGUST REVOLUTION

In the office rental market, office buildings are classified into Grade A, B, and C, with each grade having different quality standards. So, what is a Grade A office building? What are the criteria for a Grade A office? Let’s find out with Artemis in this article.