Prices of Offices for Lease Down 30 per cent in HCM City
Office-for-lease market in HCM City is coming down with prices expected to reduce by 30 per cent-50 per cent in the near future.
At present, the current ceiling price is US$70 a square meter per month, the source said, adding that rental prices are declining to stimulate demand; however, many high-sky office-for-lease buildings remain vacant due to lack of clients.
It is attributed to the fact that several domestic and foreign businesses are reducing business, production activities and employees due to the global economic recession. Additionally, supply for high-sky offices for lease is increasing.
A-level office-for-lease towers in 2008 priced at US$60-US$100 a square meter have now fallen to US$40-US$70 a square meter a month.
Similarly, prices of B-level towers reduced to US$30-US$35 a square meter a month from US$40-US$45. Meanwhile, prices of C-level towers have reduced to US$10-US$15 a square meter a month from US$20-US$27 a square meter a month.
CBRE said at a recent seminar that prices of offices for lease are reducing and there are no clients. In the worst scenario, investors should consider transforming part or all usage purposes of buildings thoroughly to rescue themselves.
Many real estate analysts forecast that the golden time of office-for-lease buildings has gone. However, when the economy in Vietnam recovers, prices of commercial premises are certain to increase.
While prices of offices for lease are declining, commercial centers are forecasted to see an increase in rental prices.
According to CBRE, total supply of retail centers in HCM City is 200,000 square meters with the occupancy rate of 96 per cent. (Vietnam & World Economy)
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