Income from office leasing in Vietnam is the most attractive in the world

For the second time in 2017, Hanoi and Ho Chi Minh City are leading the list of the most ideal cities for rent.

According to Savills' latest report on the office leasing market, as of June 20, HCMC and Hanoi had a 7.86-8.65% return. With an asymptotic income of 8-9%, the two representatives of Vietnam surpassed a number of other prestigious cities of Asia, Europe, America and Oceania to become a city with office rental income. most attractive in the world.

Other emerging and developing cities in the world have the following office rents in Hanoi, Ho Chi Minh City: Perth (7.5%), Manila (7.39%), Tampa Bay (7.3%), Houston and Dallas (6.9%), Atlanta (6.8%), Jakarta (6.5%) ...

Asian cities always hold a high ranking in the index of rental income and the attractiveness of investment flows from the global. Over the past three years, the office market in Asia has been optimistic. The low cost of capital mobilizes capital, rents and capital values ​​continue to rise across the market, check the infinity.

Increased capital inflows into Asia are the result of the tightening of the market cap. However, the demand for large office space led to the completion of many new office projects, helping to increase the vacancy rate.

Offices in Ho Chi Minh City and Hanoi are taking the lead in the comparison of office profitability worldwide.

Savills Vietnam Managing Director Neil MacGregor said that the office market in Vietnam has been operating very well. Especially, the A-class segment has a rental capacity of over 95% in the central areas of the two major cities.

Alongside countless opportunities for promising integration, reform and economic growth in recent years, Vietnam continues to welcome more and more foreign investment flows into the national economy, contributing to the growth of the office leasing market.

Neil MacGregor, in particular, said that being the host of the APEC 2017 conference gave Vietnam the opportunity to showcase its strengths and potential investments in 2018 ahead. The infinity is one of the new one to consider.

According to Neil MacGregor, the current strategy of investing in the global office market is somewhat affected by the emergence and development of new factors. This is the demographic development trend (population aging, new urbanization or the changing cognitive or developmental power of the millennials - generation born in the early 1980s). In addition, the office market is also affected by the penetration of digital technology.

In the future, technology will continue to grow strongly, challenging traditional definitions of long-term use of real estate, such as the emergence of office rental models, online housing , or new technologies applied to retail, logistics.