Vietnam’s low office space rents makes the country an attractive base for businesses.
Recent research gathered by Savills has assessed the costs of office space across the globe. Once again Hong Kong tops the charts with the most expensive rents. This is followed by London, Tokyo and Singapore. With three Asian cities sitting in the top four rankings makes the region one of the most expensive commercial markets in the world. Good news for Vietnam which is far more affordable in comparison.
“Vietnam offers prime office at a relatively low cost. Savills Asia Pacific Prime Benchmark 2H/2017 shows Hanoi and Ho Chi Minh City occupancy costs at USD 38.8 and USD 52.2 per square metre respectively. Being considerably lower than Taipei, Sydney, Singapore, Seoul, Shanghai and Hong Kong etc., certainly helps confirm our competitive advantage in the eyes of global occupiers. However, with low vacancy rates in many grade A buildings and limited new supply of prime office space, rents are likely to increase over the next two to three years”, commented Hoang Dieu Trang, senior manager commercial and residential leasing Savills Hanoi.
In comparison the average rents in Hong Kong are USD 250.96, Tokyo USD 190.17 and Singapore USD 136.55. This illustrates the attraction of Vietnam within the region to set up and operate businesses from. Spurring on both Hanoi and Ho Chi Minh City to having some of the highest office yields.
Asia’s rents have remained stable. Europe and America however have been less more volatile off the back of Brexit and the uncertainties that have arisen with the fairly recently elected President Trump and a weakening dollar. For Vietnam office space is developing and growing to meet with demand. There has been an increased number of co-working spaces to the market. Plus overseas developers such as CapitaLand and Gamuda Land are increasing their presence in the country too.
