Office rents in HCMC continue to escalate in all segments, ranging from grade A offices to high-end offices. Rising price for limited office rents in CBD area may not be the only reason.
Office rents and occupancy have been continuously increasing, especially in the CBD area of HCMC. From the end of 2018, huge number of new offices entered the rental real estate market. While non-CBD area continuously recorded new supply, CBD area’s existing supply was quite small.
Although the supply has not increased, the market is still active with the entry of new brands and the expansion of existing brands. For examples, Somerset Feliz from Feliz en Vista, a project of CapitaLand has been always a hot spot.
Somerset Feliz en Vista is part of the Feliz en Vista project campus with 154 luxury serviced apartments. CapitaLand has estimated to hand over all apartment in December 2020.
By the end of 2019, experts revealed that HCMC office market would welcome a large amount of new supply. It is likely to cause the occupancy rate across the market to fall.
Flexible workspaces will continue to expand in both central and non-central areas. In the short term, the market will continue to receive good demand for rent thanks to the positive economic foundation of Vietnam.