Ho Chi Minh City is forecast to suffer a serious shortage of high-end office space with an influx of multinational firms flocking into the southern economic hub of the country.
A fast-growing economy, stable politics, and forthcoming accession to the global largest trade club, WTO, have all contributed to make Vietnam attractive to international economic groups.
According to a report made by the International commercial property developer CB Richard Ellis Vietnam (CBRE), there is to date 300,000 operational square meters of office space nationwide, widely considered too small for a big economic center like Ho Chi Minh City.
The figure meets just 70 per cent of market demand, according to CBRE statistics.
All office buildings for lease in the city have been fully occupied for the last three years, especially A and B-class offices, forcing all leaseholders to extend their lease contracts despite a 10 per cent leasing fee increase.
The shortfall in high-end office space could last until 2008, when many large projects were set for expansion and new projects for completion.
CBRE said limited supply of office space combined with soaring demand had sent rents skyrocketing in HCM City over the last four years, a trend likely to continue.
At US$15- $35 per sq.m per month including service charges, Ho Chi Minh City’s rental rates were among the highest in Southeast Asia cities.
A sq.m of office may be offered at $38 in the metropolis in the next year, even higher than the current levels in central areas in Singapore, at $34 per sq.m.
Real estate consultancy companies said they can not fulfil the orders by clients for offices and forecast that a prolonged shortage would lead to office price fever.
Young People
Vietnamese
