Vietnam Bank News

Vietnam Bank Directory

Trade BCHUSD, Bitcoin and Cryptocurrencies

BUY & SELL BCHUSD | View BCHUSD News & Updates

Buy Sell BCHUSD, Bitcoin and Cryptocurrencies

Banking News & Financial Services News
Get the latest banking news headlines from Find in-depth Vietnam coverage from banking, investing, financial, stock market, and more abou Vietnam banking system, bank for industry and trade, Vietnam banking sector.

Office rents head further north in southern hub   2008-05-13 - ThanhNienNews

A continuing shortage of office space in downtown Ho Chi Minh City has pushed rents even higher, forcing tenants to choose between putting up with cramped conditions or moving out of the city center.


 The average monthly rent in grade-A buildings, including Sunwah and Metropolitan, has soared to more than US$80 per square meter, including service charges and value-added tax.

When rents were $75 a square meter two months ago, HCMC ranked 13th out of 203 locations in 58 countries in terms of office rents, according to a report by global property services firm Cushman & Wakefield.


Grade A — Distinctive architecture (known architects and contractors), high rise building, large floor plate (more than 1,000 square meters), preferably column free, ceilings higher than 2.8 meters, efficiency, quality systems and complying with leadership in energy and environmental design (LEED) standards

Grade B — Good architecture, more than seven stories, floor plate between 500 and 1,000 square meters

Grade C — Functional, floor plate less than 500 square meters

Source: CB Richard Ellis Vietnam

Tenants of many grade-B and grade-C office building have also suffered from the wave of rent hikes.

A company in the Pasteur Tower building, for example, now has to pay a monthly rent of $45 per square meter, an increase of 50 percent from several months ago.

Despite the hikes, growing demand and tight supply has kept most office buildings fully tenanted.

As a result, many expanding companies have started to make use of every inch of office space they have instead of renting more.

A multinational company representative said he had planned to expand his office in a grade-A building.

However, the plan was ditched when he found out the monthly rent would be $80 per square meter.

The company instead had to “rearrange the room to fit in more desks,” he said.

Dang Phuong Hang, General Manager of Cushman & Wakefield Vietnam, said the trend was becoming common among foreign companies in HCMC.


The booming economy, the strong growth in foreign investment, the entry of multinationals and concerns regarding the safety of working environments.

Source: CB Richard Ellis Vietnam

“Many of our company’s clients have opted not to rent more space but to rearrange their current offices,” Hang said.

Many companies have moved at the end of their rent contracts, heading for newly-developed areas in the city.

“Only big multinational companies must rent downtown grade-A offices to promote their brands,” Hang said.

A market analyst told Thanh Nien he expected the increase in rent rates would ease later this year when more office buildings come on line.

According to CB Richard Ellis Vietnam (CBRE), a real estate services company, the construction of about 40 office buildings will be completed this year, supplying an extra 262,000 square meters to the market.

Other Banking News

Vietcombank bosses face worried shareholders   2008-04-29

Central bank won’t change rates on inflation   2008-04-27

ANZ CEO sees changes in Vietnam’s future   2008-04-19

Vietnam central bank tells ACB to slow 2008 lending   2008-04-18

Banks see strong results despite tough policies, interest rate wars   2008-04-16

Citigroup hires new head of Vietnam investment banking   2008-04-14

Tight credit causes liquidity issues for banks   2008-04-08

Inter-bank lending rate jumps   2008-04-04

Cheaper dollar not a boon as expected   2008-04-04

State Bank to buy up foreign currency   2008-03-26

PM kicks off UK tour with $1 billion in deals   2008-03-05

IFC gives Sacombank more funds for home loans   2008-02-27

Vietnam central bank calls for savings rate cap   2008-02-27

Banks dangle higher deposit interest rates, but at a cost   2008-02-21