Office Market for Rent in HCMC Still a Bright Spot
The real estate office market in Ho Chi Minh City currently lacks buying and selling transactions but is active in the rental segment. Which, the segment with the strongest recovery is the office for rent with high search demand, absorption rate reaching over 90% even in non-CBD areas.
The bright spot of the office market for lease in Ho Chi Minh City
In the context that the real estate market is still facing many difficulties, offices for lease are a potential segment in 2023, especially models with high flexibility, adaptability, space optimization, and properties. global interaction. Currently, the investor of office projects has also renovated the projects and launched office spaces to create flexibility, and optimize working space, to meet the diverse needs of the market.
Vietnam is currently assessed to have a better growth rate than other countries in the region, with a GDP of 2022 reaching 8.02%, attracting new investment from foreign investors to open new markets. expanding business activities, creating demand for offices for rent. The office real estate segment is therefore considered a potential segment for investors in 2023. 2023 will also be an appropriate time for businesses to choose to change their headquarters or expand their offices to other locations. near-central areas when the supply of office space in these areas becomes more abundant.
In parallel with the requirements for an office model with high flexibility, adaptability, good space optimization, and global interoperability, environmental, social, and governance (ESG) criteria continue to be met. continue to play a key role in investor decision-making in Asia Pacific, as multinational tenants demand environmental certifications, the green office building market is growing rapidly. many opportunities to attract investment capital. The selection of green certifications in the renovation, upgrading, and construction of new office projects will be a prerequisite for offices in the future.
Statistics of the office market for rent in Ho Chi Minh City
Survey data in the fourth quarter of 2022, in Ho Chi Minh City, most Grade A buildings continue to maintain occupancy rates above 90%, and some buildings always keep 100% throughout 2022. With the rental price of knives. from USD 41 – USD 67/m2/month (equivalent to VND 964,000 – VND 1.6 million/m2/month), an increase of about 3% compared to the previous quarter, this segment is always sought after by leading corporations. The Grade B segment remained unchanged, with some projects increasing rents and service costs.
However, the increase is similar to Grade A, the average rent of Grade B this quarter is about 35 USD/m2/month (equivalent to 822,000 VND/m2/month) and the vacancy rate is more than 18% due to a new project launched. put into operation in the quarter. Areas near the center of Ho Chi Minh City are also attracting great attention from tenants with the advantage of rental prices as well as the ability to connect to the center gradually improving.
It is the limitation of future supply, and the demand for presence in the central areas of big cities such as Ho Chi Minh City and Hanoi large corporations, especially multinational corporations, so the rental price is the same. The occupancy rate of buildings in the central area has always maintained a high level. It is expected that the average rental price in 2023 will increase by 2-3%, and the occupancy rate will keep above 90%. Parallel to the improvement in infrastructure connecting the central area, affordable rents, newer projects with advanced technology, and abundant space for development, the sub-central areas are becoming more and more popular. should attract tenants and investors.
With the development of the office rental segment in the Ho Chi Minh City area, experts estimate that in the context of the world economy experiencing common problems such as inflation, interest rate hikes, or risks Regarding a global economic recession, the activity of office leasing still shows as a bright spot.
Regarding the highlight of the office market in 2023, the market is experiencing a shift in office design and expansion strategies such as greater flexibility, changing personnel structure, and optimizing space to save money. budget when the economy is difficult… This trend suggests that lessors upgrade their service quality to continue to retain existing tenants and attract new ones.
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