Outlook 2023 Vietnam

KEY MESSAGES HANOI

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 By the end of 2022, Hanoi CBD is expected to welcome one new project with 8,104 sqm added to the current Grade A supply stock.  Beyond this, a total of nearly 237,000 sqm of new supply is forecast for the 2023-25 period.

 Given the ongoing economic instability, demand is expected

 Rents are forecast to be

 Hanoi CBD is likely to remain tenant favourable in the near term. The Starlake New Urban Area, which will become a prospective business hub in the future, is currently under developed. New infrastructure and new projects, either planned or under construction,

relatively stable over the forecast period, registering less than 1% growth per annum.

to slow. Accordingly, net absorption is projected to reach about 18,400 sqm in 2022.

 Vacancy is expected to increase to 15% in 2022 from 8.5% in 2021, but then decline through to 2026.  With the abundance of new

are likely to make the area attract occupier attention.

supply across Hanoi, the market is expected to be tenant favourable over the forecast horizon.