Office building rents up in HCMC’s Thu Thiem despite bearish market

By Vu Le   May 18, 2023 | 03:19 pm PT
Office building rents up in HCMC’s Thu Thiem despite bearish market
A grade A office building under construction in Thu Thiem, Thu Duc City, Ho Chi Minh City. It will be completed in Q2, 2023. Photo by VnExpress/Trung Tin
While rents for office buildings declined all over Ho Chi Minh City in the first quarter, they rose by 8% year-on-year in Thu Thiem, according to real estate consultancies.

The average occupancy rate in Thu Thiem, the new urban area in the city’s Thu Duc City, stood at 99%, 13% higher year-on-year and 5% quarter-on-quarter due to low supply, Savills Vietnam said in a recent report.

According to Cushman & Wakefield, the average rent in Thu Thiem increased to US$38 per square meter per month.

Savills said Thu Thiem is gradually becoming a new hub, attracting a lot of attention from prospective tenants due to its transport connectivity with District 1 and competitive rents for office buildings.

Besides, office buildings there tend to be green and with new technologies, design and layouts that save 20% space compared to old-standard buildings, it said.

Cushman & Wakefield said Thu Thiem would get new grade A office buildings in the second and third quarters with rents of up to $52, comparable to rates in the central business district.

Trang Bui, CEO of Cushman & Wakefield Vietnam, expected Thu Thiem to compete with the central business district and other urban districts.

Buildings in Thu Thiem have 1,600-1,800 square meters of space in a single floor, while it is difficult to find anything with more than 1,000 sq.m in District 1.

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