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Office space surplus
There will be a spurt in the supply of office space in the second quarter in HCM City, with an expected 11 new buildings with 98,000 sq.m set to open then, according to a report released by property service provider Savills Vietnam.
In the first quarter, one new Grade B and seven new Grade C buildings opened as total supply increased by 5 per cent over the previous quarter.
HCM City has a total of 138 office buildings of all grades, with a total area of around 838,000sq.m.
District 1 accounts for 54 per cent while Tan Binh District, ranked second after District 1, 17 per cent.
The average rent across all grades and districts edged down by 3 per cent quarter-on-quarter and 11 per cent from a year ago to $30 per square metre.
The average occupancy rate remained stable at 89 per cent even though around 42,000sq.m of space was added to the market during the quarter.
However, the majority of office transactions involved small spaces of below 100sq.m. Grade B buildings were the most sought-after by both new entrants and existing tenants.
Half of the 315,000sq.m of new supply this year will come from three major projects - Vincom Tower, Bitexco Financial Tower and A&B Tower, all in District 1.
District 7 will become a new business hub, contributing around 250,000sq.m, or 20 per cent of all incremental supply. This would see it take second spot in the city in terms of supply behind District 1.
In the first two months, 35 foreign direct investment projects were licensed with a total capital of $325 million. Real estate accounted for nearly 60 per cent of the total amount.
Thuy Anh
vietnamnews
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