VIETNAM REAL ESTATE INVESMENT MARKET OVERVIEW AND OUTLOOK Q2.2023
PERFORMACE
The rent remains at a steady level.
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.
Source: Colliers (Vietnam)
Source: Colliers (Vietnam)
news relative
Virtual Office vs. Shared Office – Which is best for your workspace needs? A large number of organizations, especially entrepreneurs and small business owners in Vietnam are now looking for workspace options with great flexibility but still minimizing their operation costs, and as a result, virtual and shared offices have incredibly increased in popularity.
Both two types of offices can save your business the cost and hassle of setting up an office from scratch, but do you know which one is best for you?
What Does “Hybrid Work” Really Mean? Use the right hybrid work tools
The best way to support employees in a hybrid work model is to offer them the right tools. By understanding that each person works differently, hybrid managers have a better chance to avoid a toxic productivity environment and improve employees’ mental health when they work from home. For example, managers can run a survey asking for peoples’ preferred working-hours. Another challenge in hybrid work is decision-making. A project can go badly if employees working from home are not considered in the process. Having a transparent way to communicate across departments can improve team accountability. After all, the main goal is to help people to stay motivated and focused at work.
VIETNAM NEWS HIGHLIGHTS - DECEMBER 2021 By Bloomberg, "Vietnam’s economic growth accelerated in the fourth quarter as manufacturing revived and exports extended their recovery from the pandemic slump earlier this year."
Serviced Office Global Market Report 2022 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%.
HCM City’s office space market rebounds strongly 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.
Vietnam to Increase Regional Minimum Wage from July 2022 Vietnam will increase regional minimum wages by approximately 6 percent from July 1, 2022. The increase varies from US$140 to US$202 depending on the living expenses in a particular region. Businesses should prepare their budgets given the short notice and incorporate the increased HR costs from July 1 and beyond going forward.
