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New supply on way for HCMC office space

Released at: 10:46, 22/11/2019

New supply on way for HCMC office space

Photo: LIM Tower 3

Office segment in city set to flourish when new office blocks come online.

by Hung Cao

While the world’s economic situation remains “unstable” and tends toward slow growth, Vietnam posted growth of 6.98 per cent in the first nine months of the year. Growth has been ongoing over the years, encouraging domestic and foreign enterprises to restructure their office networks to secure a high-quality professional workplace that attracts and retains talent.

Existing office buildings

In the first quarter of 2018, rentals for Grade A and B offices reached $39.71 per sq m and $22.35 per sq m per month, respectively. And rentals continue to increase due to limited supply, according to CBRE’s latest report on Ho Chi Minh City.

Deutsches Haus, also known as German House, is an A+ office building located on the corner of Le Duan Boulevard and Le Van Huu Street in District 1. A pioneer in creativity and energy saving and with 25 floors and a total usable area of up to 30,000 sq m, the building is home to the Consulate of Germany and a preferred destination for German companies and international businesses.

It boasts state-of-the-art equipment and services to meet the expectations of those looking to house their companies in the heart of the city. The luxurious, modern design and strategic location, however, also mean incredibly high rental rates, putting it beyond the reach of many.

Another popular office building in Ho Chi Minh City is Saigon Center Tower 2, located on Le Loi Street in District 1. Equipped with high-class, modern equipment, it fully meets tenant needs such as well-ventilated parking, multiple high-speed elevators (eleven), central air-conditioning, 24/7 CCTV, and international-standard smoke alarms and fire systems. Saigon Center Tower 2 is the preferred workplace of many domestic and foreign businesses.

Upcoming office buildings

According to recent JLL figures, despite an abundance of new supply, vacancies remain limited, with an average occupancy rate at Grade A and B of 96 per cent. Rental options in the CBD continue to be few; an issue expected to improve when LIM Tower 3 and Sonatus Tower come into operation before the end of this year.

Located in District 1, LIM Tower 3 claims a modern and luxurious design including 25 stories and a three-floor basement. In addition to meeting rigorous technical standards, the tower also features all essential amenities, with a central location that will contribute significantly to its credibility among Vietnamese and international businesses.

LIM Tower 3 promises to be the ideal working space for well-known enterprises in Vietnam to operate and expand to an international level, as well as a base from which multinational corporations can develop strong operations and reputation in Vietnam.

Sonatus Tower, meanwhile, is located in the famous Japanese Quarter at 15 Le Thanh Ton in District 1 and features 25 floors and four basement parking levels.

In addition to major companies, Sonatus’s key tenants will include startups in finance and technology. With competitive rentals, a diverse working space, convenient location, and many suitable facilities, Sonatus will help make up for the lack of office supply in the city.

Friendship Tower, a 21-story building providing approximately 13,700 sq m, is expected to be the most sought-after office tower in 2020.

Ho Chi Minh City’s office market has witnessed a number of high-quality products come online that are suitable for the needs of the era of Industry 4.0, which also adds a new look to Vietnam in general and the city in particular.

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