The high demand for office in Vietnam brings positive signals for the development of the economy and real estate. Office demand is expected to rise by an estimated 6% annually between 2018 and 2021, Especially, technology, e-commerce and coworking companies.
Based on JLL’s latest outlook report for the second half of this year “Southeast Asia set for further outperformance,” office take-up in the region accelerated over the last six quarters as demand continued to surprise on the upside. In which Vietnam has impressive results.
Demand for office in Ho Chi Minh City
As end of 2Q18, the total stock of HCMC office market increased to 1,945,000 sqm with the overall Grade A and Grade B occupancy rate standing at the high level of above 95%. The overall rental rate is expected to continue the upward trend with support by healthy demand and increased quality in future supply. A large volume of high-quality Grade B supply is also projected to complete by 2020 and will likely put pressure on Grade A sub-market in the future.
Demand for office in Hanoi
In Hanoi, demand for Grade A & B office in 2018-2019 will increase on the back of positive economic growth. Higher occupancy rates were observed in both Grade A and Grade B office market as new set-up and relocation purposes continue to be the main drivers of office demand.
Stephen Wyatt, Country Head of Vietnam, JLL comments:” Vietnam is considered to be one of the fastest growing e-commerce and flexible space markets in the region. This uprising trend will have a positive impact on the office market as companies, both foreign and local, will be looking for a suitable place to set up operations in this promising economy.”