Office rents rise as supply runs out
05-AUG-2008 Intellasia | Thanhniennews
Aug 5, 2008 - 7:00:00 AM
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As the demand for office space in HCM City is beginning to stretch supply, rents are rising.
CT Plaza in Tan Binh District opened just last Saturday but the promoter said most units have been rented already at US$30 a month per square metre.
Dinh The Hien, head of the Institute for Applied Informatics and Economic Studies, said the office rents have increased sharply this year.
The rent in A-grade buildings, for instance, has risen from US$50-55 last year to US$60, he said.
B-grade building rents have increased from US$25-30 to US$40.
He estimated 98% of the total available office space of 466,000 square metres to be taken.
Construction of many shopping centres and office buildings is expected to be completed by 2010, including Asiana Plaza and Times Square in District 1, Lotte Mart and Saigon Paragon in District 7, and Everrich in District 11.
Once these buildings come into the market, the city will have a further 370,000 more square metres of office space.
Hien said there are 14 shopping centres in HCM City with 150,000 square metres, and 92% of their space has been leased.
'The city needs at least five times as many shopping complexes as it has now to meet the demand from emerging retailers,' he said.
Commercial space costs around US$40 per square metre per month but this would increase when foreign players enter the retail market, he said.
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