return icon

Offices for lease yield high profits for investors

The occupancy rates of office buildings located in advantageous positions are at a record high.

Unlike the housing market segment, offices for lease have been thriving thanks to high demand and the lack of new projects.





Just after one year of operation, B-class E-Town Central with the total area of 34,000 square meters has a high occupancy rate of 94 percent. It is expected that REE, the investor, will put E-Town 5 (17,000 square meters) into operation in the third quarter, and start construction of E-Town 6, 40,000 square meters soon.

A report from Savills, a real estate consultancy firm, showed that Hanoi had the highest office yield in the world for the second half of 2018, with a market yield of 8.57 percent.

This was the third time since January 2018 the city ranked first in A-class office yield. HCMC dropped to the fourth position though the yield was still relatively high, at 7.36 percent.

The demand for offices will be supported by foreign investors heading for Vietnam because of the US-China trade war. The attractiveness of the office-for-lease segment will also come from the e-commerce boom and demand from technology and finance startups.

Analysts say there are many reasons to predict an optimistic trend in the market segment in upcoming years. The demand for offices will be supported by foreign investors heading for Vietnam because of the US-China trade war. The attractiveness of the office-for-lease segment will also come from the e-commerce boom and demand from technology and finance startups.

Most recently, an area of 10,000 square meters at the A-class Saigon Centre was leased to a well-known e-commerce platform. Sources said the company has to pay $500,000 a month for the business premises.

According to JLL, this was the biggest office leasing transaction in the last 10 years in HCMC.

The ‘co-working space’ movement has also given a push to the office-for-lease segment. The list of co-working spaces now includes dozens of names, including Toong, Hatch! Nest, Nest by AIA, Dreamplex and Saigon Cow.

Having realized the great potential of the Vietnamese market, WeWork, a well-known co-working space distributor from the US, has come to Vietnam.

While the demand is on the rise, the supply of offices for lease is not abundant, as only a few new office building projects have kicked off.

In HCMC, Lim Tower 3 is the only A-class office building to join the market this year. The other important projects, such as The Nexus on Ton Duc Thang street in district 1 and Alpha Town are going slowly and analysts believe that they will not open until 2020.

Office buildings in non-CBD areas are getting ready to receive tenants. These include the B-class Thaco Sala in district 2 and the Tower 1 building in the OneHub hi-tech park in district 9.




Vietnam to see big inflow of FDI in 2019

FDI in Vietnam in first two months of 2019 reaches $8.5 billion


Kim Chi



E-commerce accounts for 60% of Vietnamese digital economy

Vietnam’s digital economy saw the gross merchandise value (GMV) reaching US$23 billion last year, with e-commerce making up over 60%.


Vietnam in sustainable management phase of Covid-19 pandemic: WHO representative

3 million SIM cards with incorrect information to be locked by March 31

About 3 million mobile phone subscribers whose personal information registration doesn’t match the national population database will have their phone service cut off by the end of this month, the Ministry of Information and Communications has said.


Corporate bond issuance surges in March after prolonged inactivity

Vietnam Airlines announces flight cancelation due to strike in Germany

Strikes at Germany’s Frankfurt Airport led to a massive cancellation of flights from Hanoi and HCMC to the German metropolis from March 26-28.

Bamboo Airways to issue nearly one billion shares

Bamboo Airways has revealed plans to raise nearly VND10 trillion (US$424.1 million) by issuing 996.2 million shares.

SEA Games torch carried through streets of Hanoi

Brimming with symbolism, the torch was ceremoniously lit from a small lamp that had landed on Vietnam’s soil two days prior, and had been carefully guarded at the Cambodian Embassy.

British experts discover new untouched caves in Quang Binh

Five new caves where humans have never set foot were recently discovered in Lam Hoa commune of Tuyen Hoa district in the central province of Quang Binh by experts of the British Royal Cave Association.

30 Indonesians fall victim to Malaysia human trafficking ring in Vietnam

The police in Ho Chi Minh City have busted a human trafficking ring involving Malaysian nationals that allegedly deceived 30 Indonesians for property appropriation in Vietnam.

Over 103,000 TB cases detected in Vietnam last year

Vietnam detected 103,120 tuberculosis (TB) patients in 2022, up nearly 31% year-on-year, and 1.8% against that of 2020.

Vietnam commits to cross-border water development goals: Deputy PM

Vietnam pledges to further enhance cooperation with international organisations and partners to achieve sustainable cross-border water development goals, Deputy Prime Minister Tran Hong Ha has said.

Vietnam tourism promoted in Japan

A workshop on Vietnamese tourism and carriers, co-hosted by Vietnam Airlines and travel operator Thien Minh Group (TMG), took place in Tokyo on March 24, gathering 80 travel companies and airlines from both nations.

Hanoi seeks support from UNESCO in restoration of Kinh Thien Palace

Hanoi asked for continued support from the UNESCO World Heritage Centre (WHC) for a project to restore Kinh Thien Palace in the Thang Long Imperial Citadel in Hanoi, which was recognised as a UNESCO World Heritage Site in 2010.

CAAV suggests more time for piloting biometric authentication

The Civil Aviation Authority of Vietnam (CAAV) has proposed continuing pilot application of biometric authentication (facial recognition) at airports’ check-in desks.

Netflix to set up representative legal entity in Vietnam

Netflix is carrying out procedures with the Ministry of Planning and Investment to establish its representative legal entity in Vietnam.