Hanoi and Ho Chi Minh City are still viewed as potential markets in commercial real estate in Asia, with high occupancy rates posted for office space for lease, according to Savills Vietnam.

Occupancy at Grade A, Grade B, and Grade C offices in Hanoi reached 82 per cent, 85 per cent, and 92 per cent, respectively, in the second quarter of 2023.

Average occupancy in Ho Chi Minh City was 92 per cent.

Leasing prices in the two cities were also quite competitive, according to Savills Vietnam. The average price of Grade A offices in Hanoi during the first half of 2023 was $41.6 million per sq m per month. This is 50 per cent lower than in regional cities such as Seoul, at $97.6 per sq m per month, Singapore, at $100.1, and Beijing, at $101.7.

Meanwhile, demand for office space for lease has continued increasing in Hanoi and Ho Chi Minh City due to the dynamic business activities of enterprises and the development of new fields.

High occupancy and competitive leasing costs have made the two cities more attractive to businesses, according to Savills Vietnam.