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HCMC’s office-for-lease market is prosperous when rent levels are softly raised

 

In spite of being under the last construction phase, many real estate projects in HCMC have been registered for rent by many customers. These projects can be listed such as President Place building in Nguyen Du District (District 1), Pico Saigon Plaza in Cong Hoa District (Tan Binh District), etc. According to CBRE on offices for lease in Q1, the new leasable area of grade-A and grade-B offices increased strongly, nearly equivalent to 50% of the whole year 2012. Also according to CBRE, in HCMC, the rental in Q1 has leaved its bottom and started to increase. In detail, the average rental of grade-A and grade-B offices slightly increased by 2.3% in comparison with last quarter. The vacancy ratio of grade-A office segment decreased slightly by around 1.1% while the grade-B segment increased by 0.8%.

 

According to Mr. Greg Ohan, director of office-for-lease of CBRE Vietnam, the market of offices for lease prospered again in Q1 with around 69% of successful transactions with rental of USD20 – USD30/m2. According to CBRE’s forecast, in some coming quarters, there is still no signal of new key supply source while renting demand keeps increasing, making rental unchanged or increased slightly.

 

Mr. Greg Ohan said that, the market of offices for lease will continue to increase slightly at least until Q3 or Q4 of this year. Also according to CBRE, the exclusive marketing agent of Lim Tower in Ton Duc Thang Street (District 1), Techclombank has registered to rent 60% of this tower’s offices for lease although it is scheduled to be completed in June 2013. Besides, Mr. Greg Ohan also predicted that, there can be a big supply source from Blue Sky Office Tower (Tan Binh District), Times Square, Le Meridien (District 10), etc.