Savills Vietnam: HCM City’s office lease market recovering

The office lease market in Ho Chi Minh City is recovering, with hybrid working model comprising both remote and office-based work emerging as a bright spot, according to experts from Savills Vietnam.

Director of Savills Vietnam Commercial Leasing Tu Thi Hong An said while co-working model is growing slowly, hybrid working spaces are proving effective to optimise operating cost and maintain working productivity amid limited supply in the downtown.

Commenting on the outlook for the office market in the near future, the company said by 2015, additional 550,000 sq.m from 21 new projects will be available, with 11 projects outside the downtown accounting for 48% of the total area.

Four A-class projects will enter the market from 2023 with an average floor area of 67,000 sq.m each, equivalent to 49% of the supply in the future.

According to the municipal Centre for Forecasting Manpower Needs and Labour Market, employment demand this year will be 310,000 if the COVID-19 pandemic is under control, mostly in the fields of commerce, real estate and electronics.

Together with information technology and communications, they also attracted the most new and additional foreign direct investment last year. Therefore, they are expected to spur demand for leasing offices and also co-working spaces this year.