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.