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Occupancy peaks in HCMC office market, Sai Gon

11-04-2014


illustration photo

This was 1 percentage point higher than the last quarter of 2013 and 3 higher than the first quarter last year.

Commenting on the increase, Savills Vietnam deputy managing director Troy Griffiths said both average occupancy and rent had trended upward since the second quarter last year.

Average rent between January and March this year was VND531,000 ($25.26) per square metre, up 2 per cent on quarter and 3 per cent on year.

Savills also reported that in the first quarter Grade A office space performed best, with 92 per cent occupancy. Grade A and B average rents have continuously increased and in the last five quarters Grade has gone up by 1 per cent per quarter and Grade B by 1.5 per cent per quarter.

In the first quarter this year, 26,700 square metres of Ho Chi Minh City’s total office space was occupied, up 48 per cent on-quarter. Total occupancy in the central business district was 34 per cent higher than non-CBD.

Griffiths said a recent survey conducted by Savills showed that foreign companies accounted for around 60 per cent of Grade A and B leases in the city. This, along with strong FDI growth in the first months of this year indicated strong demand for office space from the foreign sector.

In the first three months the southern economic hub attracted a total $752.2 million in FDI, 5.5 times that of the first quarter last year.

Savills forecasted that in the next three years, the city’s office market would add another 385,000 square metres from 30 projects. Next quarter two Grade B projects in District 1 are expected to open. They will supply more than 40,000 square metres.

As of the end of March the city had 217 projects with more than 1.4 million square metres. Total supply increased 1 per cent on quarter and 5 per cent on year.

http://www.vir.com.vn/news/en/property/occupancy-peaks-in-hcmc-office-market.html

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