Occupation rates remain low in dozens of office buildings which were built several years ago in Da Nang City.
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| Hoang Anh Gia Lai Plaza Hotel in Da Nang City reserves 4,200 square metres for office rental business |
During recent years, the office rental market in Da Nang City has undergone remarkable changes due to dramatic economic growth and a favourable investment environment.
Many office buildings have been constructed with an aim of meeting the increasing demands of domestic and foreign enterprises, however, the average occupation rate of 20 office buildings in Da Nang for the first quarter of this year reached only 70%, up only slightly by 1% compared with the last quarter.
According to Dam Quang Tuan, Chairman of Duc Manh Joint Stock Company, the occupation rate of Vinh Trung Plaza’s office space is only 60%, among which foreign enterprises rented about 40%. The remaining rentals belong to companies from Hanoi and Ho Chi Minh City.
During the first quarter of the year, an office building was constructed at 218 Bach Dang, Hai Chau District that takes up 2,340 square metres.
According to Savills’ statistics (a leading global real estate service provider), there are 20 office buildings in Da Nang City, covering 64,294 square metres. Hai Chai District, where most government offices are located, accounts for 79% of the total rental area.
The office rental price for the second quarter of this year in most buildings ranges from USD 5.50 to USD 17 per square metre per month. Indochina Riverside and Green Plaza has the highest rental price at $17 per square metre per month at the moment. The average rental price for the quarter is $12 per square metre per month, an increase of 4% compared to last quarter.
Savills expects that over 94,000 square metres of 13 office building projects might be available in the coming 5-7 years. About 80% of future office buildings will be located from the centre of Hai Chau to Son Tra Districts.