The Covid-19 outbreak caused great disruptions to the Vietnam real estate market in the year 2020 to 2021. However, production and business activities have since gradually regained growth momentum, and the Government's policy to push socio-economic recovery and development has shown positive effects since the beginning of this year. In the first 9 months of 2022, Vietnam attracted about US$15.4 billion in foreign investment, up 16.2% over the same period last year. Real estate investment continues to rank second among sectors attracting the most foreign direct investment with over US$3.5 billion received, accounting for 18,7% of the total amount of investment. GDP in the first nine months of 2022 increased by 8.83% over the same period last year, the highest growth in the past decade. This shows that Vietnam is still among the markets with great potential for investment in the Asia Pacific region.

Moving into your first office is a milestone that can help your business to set up and thrive, but when it comes to commercial office lease, it is a complex and lengthy process. Therefore, before making the final decision you will need to carefully consider a lot of things, and here are some important tips to follow throughout the leasing process to make the leasing process go more smoothly.

The global serviced office market is expected grow from $27.83 billion in 2021 to $33.30 billion in 2022 at a compound annual growth rate (CAGR) of 19.7%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $64.06 billion in 2026 at a CAGR of 17.8%.

Stable rental prices were observed in the office market of Ho Chi Minh in Q2 2023.However, the occupancy rate slightly decreased compared to the previous quarter, with Grade A offices reaching 92% and Grade B offices achieving 75%. Additionally, the average rental prices remained relatively unchanged, with Grade A offices ranging from 41-67 USD/sqm/month and Grade B offices around 36 USD/sqm/month. New projects entering the market in outer CBD areas showed a promising occupancy rate of approximately 20-25%. Furthermore, investor are actively seeking tenants, and it is expected that the occupancy rate will increase in the near future.

Office space for lease in Ho Chi Minh City in the first half of 2022 continued to make a recovery with a total net absorption area of about 21,000 sq.m, equivalent to 38% of 2021, although the new supply remained limited, according to real estate firm CBRE.

Ho Chi Minh City’s Tan Phu is a district on the rise