Grade A office rent in HCMC may increase by 20%
Grade A office buildings in Saigon are forecast to still be able to raise prices by 20 percent in 2018, according to Cushman & Wakefield.
Cushman & Wakefield has announced a panoramic view of the office market in the Asia Pacific region in 2017, which has a bold prediction on the possibility of increasing office rents in HCMC in 2018. The Infinity for refernce.
Among the promising emerging market segments in the region, HCMC office rents have increased dramatically in 2017 with extremely low vacancy rates and the highest rents since 2009 now on. This unit estimates that the rents for individual Grade A towers in downtown District 1 may increase by up to 20%.
The pressure to find vacancies in HCMC offices will continue until the end of 2019. Tenants should be advised on definitive strategies and innovative solutions to avoid the impact of rising rents. its budget.
However, contrary to the audacious forecast of this consultancy, CBRE, Savills and Jones Lang LaSalle (JLL) are operating in the Vietnam market only for offices. HCMC only increased at 5-7% per year.
Besides the bright spot of Ho Chi Minh City office, this report also mentioned the expectation of strong growth in 2018 in many other markets in the Asia Pacific region.
In Singapore, office rents are forecast to increase as supplies begin to fall from 2018. In addition, along with Singapore's economic growth and business confidence, office rents in the country are forecast to rise the most in the region, approximately 10%.
After more than two years of slump, office rents in Singapore have ratcheted up, reducing some of the cost competitiveness of the island to Hong Kong. However, the average premium for the Hong Kong market is still higher than Singapore's CBD (center) in 2018 - approximately 164%. This difference is expected to continue in the short term for office leasing trends in both markets will not be different in the next two years.
Meanwhile, the value and rents of offices in Hong Kong continue to escalate in 2017, and will continue to grow until the end of 2018. Demand from Chinese companies continues to drive the market. this school. Companies from China are not paying much attention to the rise in office rents, as the demand for the central area is too high.
The Hong Kong market will record commercial and office land deals in 2017, setting the stage for future leases. Hong Kong will continue to maintain its prime position in the coming time. However, with the widening trend in the non-CBD areas, developers are more likely to negotiate with large tenants when the lease expires.
Major Australian office markets, including Sydney and Melbourne, also recorded a record rent increase for 2018 when vacancy rates in office buildings were the lowest in the region. The fundamentals continued to be stable thanks to rising rental demand while supply was limited.
Sigrid Zialcita, managing director of the Asia-Pacific Regional Research Unit, Cushman & Wakefield, said: "The current conditions seem to have been brisk since the financial crisis erupted. But the best thing for the office rental market has not come yet." Infinity is another condo project.
"The Asia-Pacific region will continue to benefit from the economic recovery, increased office demand as well as investment policy reform processes," she said. The absorption of office space in major cities in Asia Pacific is expected to reach the highest level in 2018, about 11.1 million square meters.
