Hanoi office rental yield highest globally

By Dat Nguyen   March 8, 2019 | 09:54 pm PT
Hanoi office rental yield highest globally
Hanoi Grade A office yield was highest globally in the second half 2018. Photo by Shutterstock/Vietnam Stock Images
Hanoi offered the highest grade A office rental yield in the world last year -- 8.57 percent, a Savills report said.

This was the third straight year the Vietnamese capital ranked top, according to the British property consultancy, which used data from the second half of 2018.

Hanoi recorded a 3 percent year-on-year increase in average gross rent in the last quarter of 2018 and a steady occupancy rate of 95 percent.

Philippine capital Manila, Australia's Adelaide, Vietnam's Ho Chi Minh City, and Australia's Perth round out the global top five.

HCMC, the previous runner-up, dropped to fourth place with a yield of 7.36 percent.

HCMC has been performing outstandingly in the last five years, with average rents growing at 8 percent a year and a very high occupancy rate of 97 percent.

"The fact that Hanoi and HCMC are among markets that offer the highest yields globally shows healthy rent and occupancy prospects for the two cities," Hoang Nguyet Minh, investment manager at Savills Hanoi, said.

The two Vietnamese cities have been enormous interest from international investors, particularly Singaporeans, Japanese and Koreans, Minh said.

In the 12 months since the second half of 2017, office space attracted the largest global investment -- $340 billion, according to Savills.

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