Da Nang is now seeing a low occupation rate of local office and retail space for short-term lease due to the currently frozen real estate market.

According to statistics released by Savills Viet Nam, over the first 6 months of this year there was a total of 68,300m² available for lease in 20 local office buildings, a decrease of 1% compared with the same period last year. However, two small office buildings had been removed from the list of office space for lease because of other uses.  55,700m² of the current total office space for lease is in 17 office buildings in Hai Chau District, whilst the remainder are in 3 projects in Thanh Khe District.  

Over the period, the city’s office occupancy rate was only 86%, a decrease of 1% compared with the same period last year.  Meanwhile, local rental prices have declined by an average of 4% to 218,000 VND/m²/month.

The occupancy rate of local Grade A offices for lease was at 94%, an increase of 1% year-on-year.  Meanwhile, Grades B and C occupancy rates were at 86% and 84% respectively.

The city is expected to have an additional 2 office buildings and another 31,000m² available for lease next year.  Meanwhile, the local demand for retail space has yet to see any improvement, according to Savills Viet Nam.