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Office rentals forecast to fall another 10%

Update: August, 13/2012 - 10:12

HCM CITY — Office rental prices in HCM City are expected to drop a further 10 per cent by the end of the year, but will rise again next year, according to Savills Viet Nam.

Truong An Duong, research manager of Savills Viet Nam, said there would be a continued oversupply of office rental space this year.

Savills estimated that construction on 47,000 sq. metres of office space for lease will be completed by the end of this year, and 56,000 sq. metres by next year.

Office rental prices dropped by about 13 per cent per year in the 2008-11 period.

However, the market for office rentals is expected to recover in the 2013-14 period.

Office rental prices are expected to rise by 15 per cent next year, and 12 per cent in 2014.

In HCM City, foreign companies occupy 60 per cent of office rental space at A-class and B-class buildings.

Companies in the financial sector occupy the largest area (23 per cent) of office rental space. — VNS

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