This year, Grade A office rentals in Ho Chi Minh City are predicted to fall by around 4%.
The information was issued by market research company CBRE Vietnam in the context of a market surplus and a decline in corporate office demand.
According to a CBRE Vietnam survey, the office market began to adopt in the fourth quarter of 2022, when the leasable area fell from 44,000 m2 in the third quarter to 8,000 m2 in the fourth quarter. As a result, the Grade A vacancy rate this year is expected to be about 22%, with rental prices falling by 4%.
On the other hand, Grade B, or ordinary grade, office space will continue to operate normally, with little change in leasing price. Yet, the vacancy rate persists this year. Recently, a Knight Frank report revealed that tenants are paying about 34 USD/m2/month, with the rental price expected to fall to around 27 USD this year.
In terms of trends, high-quality and environmentally friendly office space will be in high demand. Because of their size, multinational organizations strive towards Net Zero as well as compliance with ESG requirements. This is seen as a vital criterion for investors to pursue and have a clear plan in place in order to attract renters.
It is expected that at least four more buildings will follow the green office trend in Ho Chi Minh City this year.
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Source: Vietnam Insider