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HCM City office market spreading to non-business districts- experts

2024-03-16

HCM City office market spreading to non-business districts: experts

HCM CITY — With limited vacancies and high rents in the central business district in HCM City, non-CBD supply will continue to deliver affordable office space and keep a ceiling on rents, according to Savills Việt Nam.

More than  四 三, 三00sq.m of new supply entered the non-CBD area,  五 五 per cent of it in Gò Vấp District and Thủ Đức City.

Decentralisation continues amid limited vacancies and high rents in the downtown area.

The average occupancy was  八 九 per cent, down  八 percentage points year-on-year, and average monthly rent was US$ 三 一 per square metre, down  三 per cent.

The deals were mostly for  一00- 三00sq.m of space, nearly  七0 per cent by small and medium-sized local enterprises, with only  四 per cent being for more than  一,000sq.m.

Distribution businesses accounted for  二 四 per cent, consultancies for  一 八 per cent and transportation companies for  一 三 per cent.

As against a negative figure of  八,000sq.m in the previous quarter, the take-up was almost  三 八,000sq.m.

Small businesses continue to drive demand for office space, Từ Thị Hồng An, Savills’ co妹妹ercial leasing director, said.

The quality of non-CBD buildings is gradually on par with CBD buildings but rents are lower, making them more appealing to potential tenants, she said.

Meanwhile, according to CBRE, new supply of  七 四,000sq.m will enter the market this year in five grade B buildings, AP Tower, Pearl  五 Tower, Cobi Tower, The Graces, and Saigon First House.

By  二0 二 二 two new grade A buildings are expected to come online. —VNS

 

 

HCM City office market spreading to non-business districts- experts

 

 

 

 

 

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