Grand Terra 36 Cat Linh (Dong Da, Hanoi) of investor Thanh Hoa Construction Corporation has just officially launched in the Hanoi market. Grand Terra 36 Cat Linh includes 6 office floors, 3 retail floors and 4 basement parking floors. Total rental area of the project is 14,847m2. This is one of the few projects with the largest office floor space in Hanoi with an average area of 1,800m2, with a 150mm raised floor and finished ceiling.
Theo Savills, as of 2024, Grand Terra 36 Cat Linh is one of the few green commercial office projects, built to meet LEED Gold standards. The project is committed to saving energy consumption by an average of 20% and water savings of up to 40% throughout its operation.
Ms. Hoang Nguyet Minh, Senior Director of the Commercial Office Leasing Department at Savills Hanoi, stated that in 2024, there will be 9 projects providing 217,715m2 to the office market, including 5 Grade A projects, 3 Grade B projects, and 1 Grade C project. Projects include Vinacomin Tower, My Dinh Pearl, and BRG Diamond Park Plaza.
By 2026, an additional 462,000m2 of office space from 19 projects is expected. More and more existing projects and future projects are committed to ESG. Green projects expected to enter the market by 2025 include Grand Terra, Taisei Square Hanoi, and Tien Bo Plaza. “With the expected increase in Grade A supply in the near future, rental prices will continue to be competitive,” Ms. Nguyet Minh noted.
She also mentioned that since 2020, Grade A supply has increased by an average of 5% per year, Grade B by 4%, and Grade C by 2%. Among these, Grade B has the largest supply, accounting for 49% of the market share. The West area provides the largest floor area with 41% market share, equivalent to 875,840m2.
Regarding office leasing activity in Hanoi, Ms. Minh stated that in Q1/2024, the market was vibrant. The information technology sector accounted for the largest proportion of leased area with 71% of leasing transactions. Following that were tenants from the manufacturing sector with 17% and legal sector with 12%.
According to Ms. Hoang Nguyet Minh, in comparison with neighboring markets, Grade A office segment in Hanoi still maintains competitive rental prices compared to Ho Chi Minh City market, or even within the Asia-Pacific region.