Asia Pacific Office Outlook 2024

HANOI

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 By the end of 2023, Hanoi CBD will have welcomed a total of 80,700 sqm of new supply from four projects, mainly located in Secondary districts surrounding the CBD area.  Beyond this, another approx. 100,000 sqm of new Grade A office space is forecast for the 2024–27 period.

 2023 net absorption is projected to reach 43,600 sqm, driven by strong market demand in the first half of the year. However, demand slowed in the second half of 2023 and is expected to stay low throughout 2024.  Vacancy is expected to be between 25–30% in 2023– 2024, and then to gradually drop to around 20.5% in 2027.  With the abundance of new supply across Hanoi, the market is expected to be tenant favorable over the forecast horizon.

 2023 rents are forecast to increase by 3.4% YoY thanks to new entrants in the urban core area with above-average rents.  Rents are expected to remain stable in 2024 as more supply enters the market and landlords attempt to balance the influx of new supply with the unfavorable economic situation.  From 2025 onwards, rent

 Sustainability and green buildings are going to be the key trend of new developments.  The Starlake New Urban Area, which is oriented to be a new commercial and business hub in the future, is increasingly attracting new developments. New infrastructure and new projects, either planned or under construction, are likely to make the area attract occupier attention.

growth is expected to be stable at around 1–1.3% per annum in line with the economic recovery.