Starlake emerges as Hanoi’s new Grade-A office hub

Starlake emerges as Hanoi’s new Grade-A office hub

Central Hanoi’s ageing offices and cramped layouts are pushing companies westward, with modern developments like OSI’s Oriental Square in Starlake, a major master-planned township at the centre of Tay Ho Tay, leading the shift.

According to Savills’ third quarter 2025 Hanoi Property Market Report, the capital now offers around 2.3 million square metres of office space across nearly 200 buildings. While inner districts still dominate in supply, many of these offices are ageing, feature small floor areas, and lack green credentials or hybrid-friendly design – prompting firms to seek modern, sustainable alternatives in the city’s western districts.

Companies, particularly those in finance, insurance, and real estate, are prioritising relocations to newly built, high-quality offices that provide efficient layouts, stable technical infrastructure, and sustainability certifications.

Matthew Powell, director of Savills Hanoi, noted that the shift from the old central districts to the west has been ongoing for years and is becoming increasingly pronounced. “Firms are moving to new urban areas such as Starlake because of higher-quality office buildings with green standards, reasonable rents, and more floor space, features the older central business district cannot accommodate,” he said.

Powell also highlighted workforce considerations, saying, “Tay Ho Tay, Cau Giay, and Nam Tu Liem are closer to where many employees live. Shorter commutes improve recruitment, retention, and overall job satisfaction.”

Savills also reports that Hanoi’s overall occupancy rate now sits around 86 per cent and is expected to remain stable as nearly 265,000 sq.m of new Grade-A supply enters the market between 2025 and 2027, most of it located in the west.

Tay Ho Tay is rapidly developing into a major office cluster supported by comprehensive urban planning, the arrival of embassies, international schools, and high-end residential projects. Savills estimates that by 2027, roughly 290,000 sq.m of Grade-A office space will be added to the area, an expansion that central districts simply cannot accommodate due to limited land availability.

William Gramond, director of Commercial Leasing at Savills Hanoi, said, “Demand for Grade-A offices is rising, but short-term new supply is still limited. Projects in Tay Ho Tay have a clear competitive edge thanks to modern design and operational standards.”

The area’s location near the airport, major transport corridors, and well-established residential communities also enhances its appeal. The planned relocation of several government offices and the presence of foreign-invested enterprises further strengthen its position in Hanoi’s evolving urban structure.

Within this broader transformation, Starlake stands out. The presence of research and development (R&D) facilities, international schools, and high-quality housing has created a connected live-work-learn environment that many corporates value.

Savills and OSI Holdings representatives mark the launch of Oriental Square by OSI in Starlake

On November 19, Savills and OSI Holdings hosted a launch event at plot H2CC1 in Starlake, drawing around 40 companies, potential tenants, investors, and commercial property partners. The gathering marked the first public unveiling of Oriental Square by OSI.

Located in the administrative and diplomatic heart of Starlake, Oriental Square by OSI belongs to the Grade-A segment and incorporates features aligned with current market demands: large column-free floors, a 100mm raised floor system, and a 4.5-m slab-to-slab height. The project is pursuing LEED Gold certification, in line with tenant priorities for energy efficiency and sustainability.

Savills Vietnam, appointed as property management partner, explained during the event that operational quality has become a decisive factor for tenants. Common requirements now include reliable MEP systems, robust digital infrastructure, and the ability to support hybrid working models.

Attendees toured sample areas and evaluated the initial level of completion. Although the event did not announce leasing rates, it provided prospective tenants a clearer sense of the undertaking’s functionality and design.

Oriental Square by OSI arrives at a time when the market is recalibrating around three priorities: quality, scale, and connectivity. With its location within Starlake and its large, flexible layouts, the venture is positioned to meet the needs of companies expanding or seeking upgraded premises that can support long-term workforce growth.

The surrounding environment is another advantage. Starlake hosts Samsung’s R&D Centre, embassies, international schools, residential neighbourhoods, and upcoming retail developments. Together, these elements form a complete ecosystem, something businesses increasingly consider when selecting office locations for multi-year commitments.

Oriental Square by OSI in Starlake

With the launch of Oriental Square by OSI, Starlake is cementing its role as a new hub for Grade-A offices in Hanoi. While it is unlikely to replace the city’s traditional central business districts, Tay Ho Tay and Starlake are emerging as attractive alternatives for companies seeking modern spaces, efficient operations, and workplaces better suited to employee needs.

As competition for talent intensifies and workplace expectations rise, the shift away from the historic core is expected to continue. Oriental Square by OSI demonstrates – through its design and operational approach rather than promotional claims – the evolving standards of Hanoi’s office market.

VIR