Boil more dynamic
According to a report by CBRE Vietnam, in the first quarter of 2024, the Ho Chi Minh City office market is showing signs of improvement in rental prices and occupancy rates. Although office supply in Ho Chi Minh City has not recorded new supply, in the near future, the Etown 6 building (Tan Binh district) about to open has also reached the committed rental rate of about 20%.
The average rental price in Ho Chi Minh City recorded an improvement, with Grade A rental price reaching 47.2 USD/m2/month (nearly 1.2 million VND/m2), an increase of 2.6% compared to the previous quarter and also a Grade A rental prices are the highest in the past 15 years. The average rental price of Grade B reached 26 USD/month (more than 650,000 VND/m2), an increase of 1% over the previous quarter and 2% over the same period last year.
According to CBRE, the increase in Grade A office rents in Ho Chi Minh City mainly comes from new buildings that have begun to fill up. In addition, some buildings that have completed renovations also expect rental prices to increase.
Developments in the Ho Chi Minh City office market are currently changing the balance of advantages, tenants are having a negotiating advantage in the short term.
Similarly, a report by Real Estate Consulting Company Avison Young Vietnam also shows that, in the first quarter of 2024, the office rental market in Ho Chi Minh City becomes more vibrant in terms of supply, as many projects are gradually was completed and put into operation this year.
Ms. Nhung Vu, Director of Office Services at Avison Young Vietnam, commented that developments in the Ho Chi Minh City office market are currently changing the balance of advantages, tenants are having a negotiating advantage in the short term.
However, rental prices are expected to continue to increase in the medium and long term. So tenants need to have a long-term workplace strategy, whether it’s a new hire, relocation, office expansion, or even investing in their own building.
Savills Vietnam’s forecast also shows that in 2024, demand for rental space will increase by about 7%. Tenants are increasingly looking towards new high-end buildings that meet sustainable development standards and green certificates… Notably, industry groups such as finance and manufacturing are still the main tenants. Leading the market in a volatile economic context.
According to Knight Frank Vietnam Company, in the first quarter of 2024, Ho Chi Minh City’s office rental market continued to record prosperity. In the first quarter of 2024, Ho Chi Minh City’s office rental market continued to record prosperity when newly launched buildings had a positive absorption rate, and recorded many successful transactions with leased area. up to 10,000 m2 right in the city center area.
