Blogs
Grade A Offices in Central Areas: “Supply” Cannot Meet “Demand”
Since the beginning of the second quarter of 2022, the office rental market has recorded a strong recovery. Grade A offices, in particular, are expected to show more positive performance as demand increases while supply remains limited.
According to the Ministry of Construction, the Covid-19 pandemic has basically been brought under control, while business production and operations are gradually returning to stability. Vietnam's economy recorded positive growth in the first half of 2022, which was an important factor supporting the sustainable and effective development of the real estate market.
At the same time, demand for office rentals and office occupancy rates in the second quarter of 2022 increased compared with the same period in 2021 across all segments. The Hanoi market recorded absorption of more than 20,000 m2, with most of the absorbed office space coming from Grade A projects.
In fact, although demand for rental space has increased strongly since the beginning of the year, new supply in the office rental segment, especially Grade A offices, has remained very limited, mainly coming from leasable areas within mixed-use buildings.
This caused average office rental prices across the market in the second quarter to increase compared with the first quarter.
Explaining the sharp decline in supply, experts generally agreed that the main reason was the very limited amount of land available in central Hanoi for developing office buildings for rent, especially Grade A offices.
Domestic businesses are not very interested in investing in office rental projects because they require large investment capital and have long payback periods. Meanwhile, if the same land is used for other real estate projects, developers can sell the properties and earn profits more quickly. In addition, obtaining construction permits for projects in central areas is not easy.
Together with the fact that land in the central area of the capital is almost exhausted, experts believe that very few office rental projects, especially Grade A offices, will be developed in the coming period, causing market demand to exceed available supply.
The Grade A segment remains resilient
This is also why, despite the impact of the pandemic on the office market, the performance of the Grade A office segment remained strong in 2021.
Experts said that compared with office markets in other countries, Grade A office rental prices in Hanoi were still considered lower than those in Singapore or Bangkok, Thailand, while Vietnam has strong potential for economic development.
Therefore, together with limited supply, Grade A offices are considered capable of remaining resilient even when the market shows signs of decline.
Source: Thuong Truong Magazine
Artemis Tower - A location offering large office spaces for rent in Thanh Xuan District.
Contact details:
ARTEMIS TOWER
Address: No. 3 Le Trong Tan Street, Khuong Mai, Thanh Xuan, Hanoi
Phone: 0911 422 911
Contact: marketing@mhl.vn | Website: www.theartemis.vn | Artemis Office For Lease
The Hanoi real estate market in 2026 is showing increasingly clear differentiation. While housing supply tends to shift to suburban areas, inner-city real estate prices remain high and cash flow becomes more selective, real estate with central locations, complete infrastructure and the ability to actually exploit continues to have an advantage. Located at 3 Le Trong Tan, Phuong Liet Ward, City. Hanoi, Artemis Tower is a multi-functional complex with office space, commercial center and outdoor advertising locations, meeting the presence and business needs of businesses right in the inner city area.
On the occasion of National Day September 2, MHL Investment Joint Stock Company respectfully announces to our Customers and Partners the holiday schedule for convenience in contacting and arranging work.
The Hanoi real estate market in 2026 is showing increasingly clear differentiation. As investment liquidity declines and the "surfing" mentality gradually gives way to more cautious decisions, real estate properties with inner-city locations, real exploitation capabilities and complete utility ecosystems are having more grounds to affirm their value. In that context, Artemis Tower at 3 Le Trong Tan, Phuong Liet Ward, Hanoi provides suitable space for businesses looking for offices, commercial space and brand promotion positions right in crowded urban areas.
As the real estate market enters a more selective phase, cash flow no longer simply follows the expectation of price increases but increasingly focuses on location, actual exploitation ability and infrastructure connection. In that context, commercial real estate already exists in Hanoi's inner city area such as Artemis Tower - No. 3 Le Trong Tan, Phuong Liet Ward, City. Hanoi has more basis to affirm its value from its location and ability to serve real business needs.
