Thien Thanh to build multipurpose project in Danang

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SaigonTimes English - 45 month(s) ago 16 readings

HCMC - Thien Thanh Corporation says it is working on site clearance and seeking consultancy and design companies for its office and commercial services development in Danang.

Thien Thanh to build multipurpose project in Danang

By Le Toan and Dinh Dung - The Saigon Times Daily

HCMC - Thien Thanh Corporation says it is working on site clearance and seeking consultancy and design companies for its office and commercial services development in Danang.

The HCMC-based corporation says it will set aside some US$750 million to turn the current Chi Lang football stadium into a multipurpose property project, which covers some six hectares and is surrounded by Hung Vuong, Trieu Nu Vuong, Le Duan and Ngo Gia Tu streets in Danang City.

The developer says the first phase development will include a commercial center for auto services and a center for building materials and decoration facilities. The second phase will follow with a 60-storey building which is designed with sections for commercial services, office spaces, apartments, a hotel, school and hospital.

The project’s first phase is due to be completed by April next year with the entire project to be finished by 2016, contributing significant office and retail spaces to the Danang property market.

Currently there are 25 commercial buildings in the city, providing some 77,000 square meters of office spaces as of the end of the first quarter of this year.

According to CB Richard Ellis Vietnam, the office market in Danang City witnessed the average rent across the market dropping some 7.5% compared with the previous quarter, in which Grade B rents declined 6.0% and Grade A rents remained flat.

The first quarter saw no new Grade A or Grade B space delivered in the market, and average rents were some US$19 per square meter for Grade A, some US$13.5 for Grade B and some US$10 for Grade C.

Occupancy rate was around 62% in the first quarter, increasing some 7 percentage points against the previous quarter thanks to large leasing transactions from new government projects.

Meanwhile, rental rates in the Danang retail market rose slightly as shopping centers recorded an increase of 6.7% in rent to some US$30 per square meter as compared with the previous quarter.

However, occupancy in the first quarter dropped 2.5 percentage points to 93.7% as some retailers returned their space.

According to CBRE, the Danang retail market was divided into two sectors including supermarkets, which account for a large proportion of modern retail and target a wide range of consumers, and shopping centers which target up-market shoppers.

Currently supermarkets and shopping centers are providing some 73,000 square meters to the city’s retail market, and the supply is expected to see two new shopping centers, namely the World Trade Center and Golden Square projects, provide some 50,000 square meters and 20,000 square meters respectively from 2012 to 2014.

CBRE projected that the future office supply in the Danang market would triple by the end of 2014.

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