The nine-storey building, at 41A, Ly Thai To Street is being built by the Department of External Relations and the Viet Bac Company Limited.

It is set for completion next year and provide an additional 6,500 square meters of office space to the city, The Saigon Times Daily reported.

The appointment followed the firm’s success as the leasing agent for other office buildings in Hanoi, such as Sun City, Asia Towner, Press Club and Pacific Place.

In April this year, Savills, one of the leading property consulting firms in Vietnam, was also appointed to become the leasing and management agent for the luxury property project, The Crescent, in Ho Chi Minh City’s District 7.

Savills said in its report on Hanoi’s office market, the average rent and occupancy rate saw further softening in the third quarter.

Average occupancy rates in Grade A office buildings picked up one percent quarter-on-quarter while that of Grade B dropped nine percent quarter-on-quarter due to the influx in new supply.

Meanwhile, up to 80 percent of Grade C office space was occupied in the period with the average rent of $17 per square meter per month as tenants look to tighten spending.

The company estimated over 1.1 million square meters of office space in all grades, from around 60 projects, would enter the market in the next three years.