HCMC high-end office rents jump in Q1

The average rent was 5.3 percent up from a year earlier, according to real estate consultancy CBRE Vietnam.

Grade B rents averaged $25.9, up 1.7 percent and 3.1 percent.

Similar surveys by other consultancies Colliers and Savills showed grade A rents increasing by 1-3.8 percent.

Net absorption during the quarter was 16,500 square meters compared to 15,000 in the last quarter of 2021, according to Savills.

Two sectors that achieved growth during the pandemic, information technology and logistics, accounted for nearly 60 percent of all transactions and are likely to lead demand in the next two years.

Office relocation accounted for 55 percent of transactions.

Demand for office space would keep rising, especially in sectors that would see growth such as e-commerce, real estate, electronics, IT, and communications, deputy director of Colliers Vietnam, Nhung Vu, said.

Savills added that HCMC would need around 140,000 square meters of office space for new workers this year, based on an estimate that each needs eight square meters.