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This year, rents for Class A offices in Ho Chi Minh City are forecast to fall by about 4%.
The information was released by market research firm CBRE Vietnam in the context of a market surplus and a decline in demand for corporate offices.
According to a study by CBRE Vietnam, the office market started to settle in the fourth quarter of 2022, when the lettable area decreased from 44,000 m2 in the third quarter to 8,000 m2 in the fourth quarter. As a result, the Class A vacancy rate is expected to be around 22% this year, while rents are expected to fall by 4%.
On the other hand, Class B or regular class office space will continue to operate normally, with little change in rent. Nevertheless, the vacancy rate will persist this year. Recently, a report from Knight Frank found that tenants pay about USD 34/m2/month and rents are expected to drop to about USD 27 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 for both Net Zero and compliance with ESG requirements. This is seen as an essential criterion for investors to pursue and have a clear plan to attract tenants.
At least four more buildings are expected to follow the green office trend in Ho Chi Minh City this year.
