The office market is no longer attractive

By Huu Nghi   May 4, 2023 | 03:35 pm PT
The office market is no longer attractive
Offices for rent are closed in District 1 in HCMC downtown, 2021. Photo by VnExpress/Vu Le
A reduction in office space occupancy is sweeping Ho Chi Minh City amid poor economic indicators and a shift to remote work.

In April, many businesses cut down on office space, with some even closing multiple branches to save costs due to poor economic conditions. Two reasons cited by readers are cost-cutting measures amid increasingly high rents, and streamlined operations through working online.

"I rented an 80-square-meter space in the busy Go Vap District in HCMC for 7 years, but the landlord has increased the rent twice since 2021. So I moved to the outlying District 12. The new space is twice as large but 20% cheaper than the old one. After three months, I thought: 'If I'd have known this earlier, I would have moved long ago.'"

"The new strategy for small and medium-sized stores and companies is to limit frontage rental. They tend to rent large alleys in District 3 and District 10, with convenient facilities and excellent transportation. Prices are much lower than in the central District 1, but the quality is equivalent."
Nguyen Hoang

"The price of commercial space has been increasing continuously for years in line with real estate prices. However, real estate prices have generally decreased, with some areas seeing significant reductions, but office rental prices tend to increase. This affects the business environment of real estate in particular and the economy in general. High office rental prices are not good for the business environment."
Nguyen Khang

"After Covid-19, all companies that work, meet, and conduct business can do so online and still operate well, even better than traditional methods. Therefore, reducing rental fees and returning office space is an inevitable trend."
Nguyen K.V.

The opinions expressed here are personal and do not necessarily match VnExpress's viewpoints. Send your opinions here.
go to top