Thirst for co-working spaces remains high despite a flurry of new ones to the scene.
Serviced offices are nothing new. Having being born from hotel business centres, the flexibility of this type of office space attracts start-ups and entrepreneurs who do not want to be tied down to the long term contracts offered by the traditional office set-up. This however comes at a cost, usually higher utility costs. According to Savills some operators charge ten times as much per square metre than a traditional office.
Cue co-working spaces. A concept that just keeps on growing in Vietnam. Now found in the buzzing hubs of Ho Chi Minh City and Hanoi, but are also emerging in other places such as Hai Phong and Da Nang. The latter which has been earmarked as one city in the region that appeals to start-ups. Co-working spaces are a more affordable option with greater flexibility as leasing can be on a weekly or even daily basis. Costs are kept lower than serviced offices with less facilities but plenty still to make operating day-to-day business a breeze.
As the local economy goes from strength-to-strength, more businesses are springing up in Vietnam. Over 70,000 new businesses were registered from January to July this year. A hike of 13.8 percent if compared to 2016. Plus half of the workforce are involved in small and medium-sized enterprises. These are staggering numbers and paint the country as a entrepreneurial melting pot.
The future
The growth of co-working spaces will be spurred on by recent changes in the law too. It is no longer permitted for an office to operate within a residential property. A once popular choice.
Despite the rapid growth of this form of office space, Savills note that co-working still has potential. Partly as it currently only makes up a small percentage of the leasing market. The co-working model has already rippled out into other cities across Vietnam in an attempt to meet demand and changing working habits.
The real estate firm conclude, “Co-working will undoubtedly continue to evolve to match the economic and business cycle and respond to changes in the way millennials work. In developed markets, the concept is still thriving and being incorporated in other types of property such as retail and urban hotel due to the buzz and energy shared office space creates”.