Savills exclusive event for office tenants, in collaboration with leading developers IDS Equity Holdings, Thaiholdings JSC, Cobi One, OFH and GawNP Capital, was held 28 April 2021 in Ho Chi Minh City. The event included major upcoming office developments in Ha Noi and Ho Chi Minh City, the latest office performance data with insights, and emerging trends to look out for over the next 3 years.
One of the most resilient real estate segments during the COVID-19 pandemic, the Viet Nam office market is widely expected to become a major investment destination for domestic and international investors over the next five years. Savills event was a timely reminder of opportunities ahead while providing a segment snapshot with updates on supply and demand, trends, opportunities, and future challenges for occupiers, while also ensuring time to address current tenant concerns.
Industry leading advisory expertise from Savills Vietnam delivered an in-depth presentation on the Ha Noi and HCMC office markets, and reviewed emerging office trends, such as shared space, that may directly affect tenant business activities.
Ms. Hoang Nguyet Minh, Director of Commercial Leasing, Savills Hanoi shared: “Office demand for IT and Manufacturing has increased over the last quarter. The average leased area for these two sectors is generally above 1,000 sqm. Ha Noi and HCMC office markets continue to benefit from positive macroeconomic indicators, which has been reflected by stable performance for some time. However, each market is having its unique pressures on rent, demand changes, and new office trends; all of which require occupiers to carefully adapt to achieve future growth.”
Ms. Tu Thi Hong An, Director of Commercial Leasing, Savills Ho Chi Minh confirmed, “Office supply in both CBDs offers budget-friendly and more restrained rental options. Demand from small businesses will continue rising. Over 70% of tenants in Ha Noi and Ho Chi Minh City are from Vietnamese, Japanese, Korean, American, or Singaporean businesses; all of which have extensively changed over the past 5 years.
There is a much greater focus on human resource management, with Generation Z making up 32% of the population. There is also growing interest in creating a better work-life balance to support increased productivity, and in providing office solutions that align with longer-term recruiting strategies.”
Ms. Hoang Nguyet Minh evaluated office rents: “Grade A office rents in Ha Noi and Ho Chi Minh City depend more on future supply than the current effects of COVID-19. In Ha Noi, between Q4.2020 and Q1.2021, Capital Place entered 93,000 sqm, Thaiholdings Tower 23,000 sqm and Leadvisors Tower launched 18,000 sqm. These large new entries is why Grade A office rents in Ha Noi remained stable between Q3.2020 to Q1.2021, despite Grade A average occupancy staying above 80 percent”.
Ms. Tu Thi Hong An also shared: “We closely monitor the more stable performance in the Ho Chi Minh City office market, its growing trends in supply outside the CBD, increases in CBD office rentals, and decreases in vacancies. Notable projects there include Office Haus, OneHub Saigon, and Cobi Tower 1 & 2. On the prospect level, tenants in Ha Noi and Ho Chi Minh City still have a great variety of leasing options in many different projects. With our recent event focused to corporate tenants, we hoped to provide the most up-to-date information on the Viet Nam office market along with proven guidelines for a more friction free leasing process. The bottom line is that any office relocation should be planned early with thorough consideration, prioritizing project quality and developer reputation backed up by reliable support from professional consultants such as Savills. This approach ensures tenants avoid any unnecessary associated costs, minimize risks, and most of all, are satisfied with their new office space.”
CONTACT OUR COMMERCIAL LEASING:
Savills Hanoi: ☎ 0948 000 468 | 📧 Leasing.hanoi@savills.com.vn
Savills HCMC: ☎ 0909 369 323 | 📧 Leasing.hcmc@savills.com.vn