Thu Thiem will have an additional 80,000 m2 of high-end office space from now to 2023, promising a new office market share next to District 1.
Savills Vietnam's report said, in the context of office supply in the central area. The Central Business District of Ho Chi Minh City is increasingly limited, new supply from projects in Thu Thiem New Urban Area will be a suitable piece for tenants who prefer a location just a few minutes from the center of District 1 minutes of travel.
Ms. Lai Thi Nhu Quynh, Senior Manager of Savills Vietnam office leasing department, said that it is expected that by 2023, Ho Chi Minh City will have more large-scale Grade A quality projects located in the sales area Thu Thiem island, the new supply is about 80,000 m2.
In the first 6 months of this year, the office market has recovered compared to the same period last year with an occupancy rate of 90% for the whole city. In which areas: District 1 and District 3 reached over 93%. Currently, for a Grade B building, the average monthly rent is at 34 USD per square meter. Grade A office space can reach monthly rental transactions from 60 USD per square meter or more. The new office supply that has been introduced to the market in a trickle manner in District 1 in recent years is opening up opportunities for new suppliers near the old center, including Thu Thiem.
CBRE Vietnam also said that in the first half of 2022, the rent of high-class office (grade A) is 44.9 USD per m2 per month, up 6.6% year-on-year, while the rent for Grade B office is stable at 25 .9 USD per square meter per month, up 3.3% year on year.
This unit also forecast that Thu Thiem peninsula is a new downtown area that promises to add a large amount of high-end office supply to Ho Chi Minh City in the context that the central supply of District 1 is getting less and less.
Ms. Trang Bui, CEO of Cushman & Wakefield, assessed that the office leasing market in Ho Chi Minh City in the next 6-12 months tends to shift supply to non-central areas, with competitive prices and more abundant supply.
Neil MacGregor, General Director of Savills Vietnam, said that the results of the auction of 4 land lots in Thu Thiem in December 2021 caused a lot of controversy, but it is undeniable that this place has always been an attractive area for owners. Investors are considering entering Vietnam's real estate market. Studies on the feasibility of projects on Thu Thiem peninsula have helped businesses realize that expected profits can be achieved. With the scarcity of land fund for project development in Ho Chi Minh City at this time, development opportunities in Thu Thiem become even more attractive.
Thu Thiem's transport infrastructure projects have been focused on continuous investment for many years.... Mr. Neil MacGregor said, according to data on the investment plan according to the approved project roadmap. In the coming time, Thu Thiem will receive a variety of projects such as Grade A office space (about 389,000 m2 of floor space), a commercial center (137,800 m2) and even a 5-star hotel.
According to Vnexpress.