The tenant looking out form Ho Chi Minh City "overload centre"
"In the first eleven months of 2017, the number of real estate businesses were newly established 4,500; up 60% y-o-y and capital, employ up 18,6% of the workforce, 155,300 new construction company, up 9% y-o-y and 28% in capital. End of nine months of 2017, real estate companies posted 40% increase in revenue, up 6% increase in profit. In fact, the market prices rose by 5-10% in the segment of offices rent, apartments, sales apartment, retail, etc."
"In 2018, Ho Chi Minh City, Vietnam will openning real estate retail market; this will be the premise for foreign invest retail into Vietnam market, and this is will have a strong impact on the development of the real estate market due to its high liquidity and high profitability, which is also the premise for the next ten years of real estate development."
Since 2015, office market in Ho Chi Minh City welcomed the expected number of supply with net area is quite impressive across all segments office rental.
"In 2017, Ho Chi Minh City welcomed four office building Grade A and Grade B joined to the market, three office building which recorded 70% occupancy rate at the time opening. Notably, office Grade A rental rates back-up rebounded in the past two years, achieved US$ 38.9/sqm/month, with strong net absorption increased demand coupled with higher quality from new completed buildings. Besides, office price Grade B is increasing at an annual rate, achieve US$ 22.3/sqm/month. In particular, the new office buildings Grade A joined to the market have pushed rentals higher US$ 10/sqm/month than with the buildings the same grade built before 2010."
"Office rental" has doubled as companies continue to expand. According to record of Real Estate Association Ho Chí Minh City, Vietnam, the tenants in Ho Chi Minh City has doubled over the same period (y-o-y) to 500 - 600 sqm. In addition, emerging market such as e-commerce are spurring office demand to new heights in Vietnam. Fields of co-working, logistics and manufacturing strong net absorption increased demand large ratio in Ho Chi Minh City market.
According to the statistical report, office building "Grade A" and "Grade B" occupancy rate in Ho Chi Minh City higher than 94% and "Grade C" always filled at over 97%. "Office space" demand in Ho Chi Minh City need more supply including both old and new buildings. The shortage of supply in short term make the market push rentals higher and continue to drive capital inflows into the office market in Ho Chi Minh City.
With the narrow land fund in Ho Chi Minh City present, daily traffic jam; office rentals and other service are rising will be make burden for business, that is the reason why "the tenant looking out form Ho Chi Minh City centre. Thu Thiem county town will be one of new centers in the future."