Savills report puts occupancy in southern city at 94%.
Average occupancy in Ho Chi Minh City’s office market recorded its best performance in four years in the fourth quarter of 2015, according to the latest report from Savills on the city’s real estate market, released on January 12.
The report put average occupancy at 94 per cent, stable quarter-on-quarter and up 4 ppts year-on-year due to strong year-on-year occupancy increases in all Grades, by 3 to 4 ppts.
Approximately 57,000 sq m from two Grade B and four Grade C projects entered the market. Total stock increased 4 per cent quarter-on-quarter and 8 per cent year-on-year.
Average rents were up 3 per cent year-on-year. Grade B and C rents both increased 1 per cent quarter-on-quarter and 1 per cent year-on-year. Total take-up was 60,000 sq m, an increase of 264 per cent year-on-year, in which Grade B’s share was 65 per cent.
GDP and FDI increasing in Ho Chi Minh City along with the effect of the revised real estate law and trade agreements are said to be among the factors behind the increase in office demand.
In 2015 Ho Chi Minh City ranked second in attracting FDI, with total newly-registered capital and additional capital of $3.32 billion, accounting for 14.6 per cent of the total in the country. With free trade agreements to take effect in the future and the establishment of ASEAN Economic Community, the city’s office market is expected to soar in the time to come.