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Cushman & Wakefield forecasts Grade-A office rent to rise 20% in 2018

Tuesday,  Feb 6,2018,23:18 (GMT+7)
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Cushman & Wakefield forecasts Grade-A office rent to rise 20% in 2018

Hi-rise office buildings in HCMC are illuminated at night. Cushman & Wakefield predicts Grade-A office rents will rise 20% this year due to tight supply - PHOTO: TL

HCMC – Office rents in HCMC could rise 20% in some Grade A properties this year, according to the 2018 Asia Pacific Forecast report by global real estate services firm Cushman & Wakefield.

The office sector in HCMC will see its vacancy rate fall to ultra-low levels, pushing rents to highs not seen since 2009, news website VnExpress reports, citing the real estate services provider.

Therefore, Cushman & Wakefield estimates that this could lead to an increase of up to 20% for some Grade A properties this year. As a result, this will have a dampening effect on leasing transactions as limited space is available.

The real estate services provider stresses that this vacancy pressure will continue into late 2019 so tenants will need forthright strategies and creative solutions in order to avert serious increases in rent.

Similarly, the Central Business District (CBD) market in Hanoi City which is now frozen in terms of new development, will see faster rent growth and low vacancy, and thus likely push some occupiers to explore the west and midtown areas of Hanoi, where more affordable, brand-new options are abundant, according to the report.

Meanwhile, other property services providers like CBRE, Savills and Jones Lang LaSalle project office rents in HCMC will rise by 5-7% on an annual basis.

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