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Office Freedom
Office Freedom
  • 1 Minute Read
  • 28th June 2011

HCMC, Hanoi among world’s most expensive for office rentals

Hanoi-Office-SPace-150x150Office rental prices in Ho Chi Minh City and Hanoi are among the world’s most expensive, according to a UK report by UK-based property market consultancy Knight Frank.

The two cities ranked 19th and 21st respectively among the world’s100 cities with the highest office rental prices above places such as Manhattan, Frankfurt, Beijing and Brussels at US$38 per sqm in HCMC and US$36.5 per sqm in Hanoi.

According to Saigon Giai Phong, UK real estate provider Savills said in a quarterly report that office spaces in HCMC expanded 7 per cent in the first three months of 2011 reaching 1.1 million sqm and analysts have predicted that an additional 270,000 sqm of office space will enter the market in 2011. The vacancy rate in HCMC in the first quarter of 2011 was 20.2 per cent, compared to 10.5 per cent in Bangkok and only 3.3 per cent in Singapore.

Despite the large supply in office space experts predict that rental prices will continue to increase as owners of new offices for lease rely on the rental of existing ones to set their prices.

Knight Frank said the global real estate market was showing signs of recovering, with office rentals of the world’s trading centres including London, Hong Kong, New York and Singapore on a rise.