“The next 2-3 years will be a very exciting time for real estate business,” CBRE

 At present, enterprises operating in Vietnam have big need of renting offices. However, the current small number of offices for rent and relatively high rent prices pose great difficulties to running their businesses. VIB FORUM reporter had an interview with Mr Richard Leech - Branch Director CB Richard Ellis about some issues on the present real estate market in Vietnam and its development orientation.

Recently, large numbers of small and medium sized enterprises have expressed the need to rent offices. So, should Real Estate focus on investing in building offices of grade Band C for rent?

Much depends on the demand for office space at the particular time, the price of the land, the proposed location of the office development and the other components of the development such as hotel or retail space. We have experienced an increase in the number of Vietnamese and International Companies searching for suitable office space at an affordable rental in reasonable locations and therefore it follows that some new developments should focus on this market.

According to you, can Vietnam meet the need of grade A offices? Could you give some comparisons on the number and price of the Vietnamese grade A office market with others in the region? 

I believe that Vietnam can produce Grade A office space. The developers need to concentrate on management and service levels as well as the quality of the finish. See attached our latest regional office market report which will help you compare Vietnam with other regional cities with regards the price. Vietnam ranks about number 50 in the world in terms of price. However we have few Grade A office developments, 5 in HCMC and 9 in Hanoi.

What is your comment on the number of new apartment buildings and commercial districts on the market and their affluence on common prices?

There is currently strong demand for units in quality Apartment buildings in HCMC and Hanoi. Many purchasers are speculating with a view to selling later or renting to foreigners whilst many are purchasing with the intention to live. 

Could you tell us about development trends of Real estate in Hanoi and Ho Chi Minh City for the future?

The tendency at present is for real estate investers to invest in the high to luxury end residential apartments for sale on long term lease. These apartments can be sold 1 or 2 years prior to completion. Also there are many mixed-use schemes in the planning stage in Hanoi and HCMC whereby the developer is planning to mix office and retail together in a development that could also include a hotel or residential apartment block. The next 2 to 3 years will see the completion of many ambitious projects that will trasform the urban landscape of both cities. Its a very exciting time to be in the real estate business.

• L.A