HCM City, the southern economic hub of Vietnam, currently ranks 14th among the international markets with the highest growth rates in office leasing fees, according to a newly released report on the world’s office leasing fees announced by CB Richard Ellis (CBRE).
The CBRE released the report on the world’s office leasing market after it conducted a survey of 176 cities worldwide. The CBRE’s report also said that HCM City had the 45th most expensive office leasing fee levels.
The CBRE released the list of the markets that saw the highest growth rates in leasing fees after considering the leasing fees calculated on the local currency and local weight and measure units. The list of the most expensive markets was given after considering the leasing fees calculated in USUS$/sq m/year.
The western London area in the UK is first in most expensive office price levels (US$216.29/sq m/month), followed by the city of London (US$184.60/sq m/month), Japan’s Tokyo, India’s Mumbai, Russia’s Moscow, and France’s Paris, in which city the average leasing fee is still very high, at US$100/sq m/month.
Vietnam’s HCM City has the average office leasing fee of US$43.98/sq m/month, higher than other famous cities like UK’s Liverpool, Holland’s Amsterdam, Poland’s Warsaw, Bulgaria’s Sofia and China’s Shanghai.
With an influx of multinational firms to Vietnam, Ho Chi Minh City is forecast to face a shortage of prime office space between now and 2008, according to CBRE.
The company said the insufficient supply would send rents to the ceiling in the near future.
In fact, all major office buildings are rented out, even those that are still under construction, according to CBRE.
Even buildings located outside the city center are enjoying high occupancy rates.
CBRE also predicted that by the end of 2009, the relation between supply and demand will reach equilibrium, likely bringing property project start-ups to a halt.
HCM City posted a 33 per cent growth rate, behind the UAE’s Abu Dhabi (102.9 per cent), India’s New Delhi (79.1 per cent), and Singapore (53.6 per cent), in Asia.
Though Hanoi was not listed among the globe’s most expensive office leasing markets, CBRE’s officials said that Hanoi had a lot of similarities to HCM City. (Pioneer)
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