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Economy

Hanoi and HCMC top global office yield index

Monday, 2017-04-03 14:38:55
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Hanoi scored highest with a prime yield of 8.75 percent, surpassing 53 other cities.

Hanoi and Ho Chi Minh City have topped the latest table of office yields, according to the World Office Yield Spectrum report compiled by Savills and Australia’s Deakin University.

Among the 54 cities analyzed across Asia, Europe, the U.S. and Australia, Hanoi had the highest office yield with 8.75 percent, followed by Ho Chi Minh City at 8.5 percent.

Taipei brought up the rear with the tightest yield of just under 2 percent, while Hong Kong stood at 2.5 percent.

These figures reflect the growing confidence and demand for commercial property in Hanoi and Ho Chi Minh City, Matthew Powell, director at Savills Hanoi, told Vietnam News.

However, he noted that leasable areas in both cities are relatively small in a global context, and commercial transactions, especially those involving international investors, are similarly insignificant.

Looking forward, analysts expect strong demand from leasers in both Ho Chi Minh and Hanoi, along with investor demand for commercial property.

Globally, office yields continue to firm as investors seek safe havens for their funds amidst ongoing economic and political uncertainties, and with those factors likely to prevail in the short to medium term, the office investment market, particularly in gateway cities, look certain to continue to prosper.

VNexpress

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