Hanoi office rental yield highest globally

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.