HCMC high-end office rents jump in Q1
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Grade A office rents in HCMC rose by 5.1 percent quarter-on-quarter to US$44.9 per square meter per month last quarter. The average rent was 5.3 percent up from a year earlier, according to real estate consultancy CBRE Vietnam.
Grade B rents averaged $25.9, up 1.7 percent and 3.1 percent. Similar surveys by other consultancies Colliers and Savills showed grade A rents increasing by 1-3.8 percent.
Net absorption during the quarter was 16,500 square meters compared to 15,000 in the last quarter of 2021, according to Savills.
Two sectors that achieved growth during the pandemic, information technology and logistics, accounted for nearly 60 percent of all transactions and are likely to lead demand in the next two years.
Office relocation accounted for 55 percent of transactions.
Demand for office space would keep rising, especially in sectors that would see growth such as e-commerce, real estate, electronics, IT, and communications, deputy director of Colliers Vietnam, Nhung Vu, said.
Savills added that HCMC would need around 140,000 square meters of office space for new workers this year, based on an estimate that each needs eight square meters.
Questions & Answers
Q.What was the average quarterly increase in Grade A office rents in HCMC?
What was the average quarterly increase in Grade A office rents in HCMC?
Grade A office rents in HCMC increased by 5.1 percent quarter-on-quarter to US$44.9 per square meter per month. This figure also represents a 5.3 percent rise from the previous year.
Q.Which sectors are currently driving demand for office space in HCMC?
Which sectors are currently driving demand for office space in HCMC?
Information technology and logistics accounted for nearly 60 percent of all transactions, and are expected to continue leading demand. E-commerce, real estate, electronics, and communications sectors are also anticipated to see growth.
Q.How much new office space is HCMC expected to need for new workers this year?
How much new office space is HCMC expected to need for new workers this year?
HCMC is projected to require approximately 140,000 square meters of new office space this year. This estimate is based on the assumption that each new worker needs eight square meters of office space.
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