Spotlight On The Office Market In The First Quarter Of 2017

Grade B office supplies rose sharply while Grade A offices were scarce.

According to the CBRE report, quarter I in 2017 recorded strong changes in the Grade B office space. Grade B vacancy rates tended to increase due to the abundant supply ( Mainly from the Horison project – 10,575sqm). However, in the next few months, this segment will welcome more admission members, the market will be more exciting, particularly the projects: DSD Building (20,000sqm), Discovery Complex (49,000sqm) Truong Thinh Office Building (5,400 sqm), HUD (70,000sqm) …

In contrast to Grade B, the Grade A office market has a scarcity of supply, leading to an increase in sales prices (around 3.3%). The reason for the high grade A office consumption is an increasing demand for office space and expansion (especially for IT / IT blocks). High consumption rates have clearly reflected the trend for growth in 2017. Building blocks outside the city center are being filled by businesses moving offices outside the CBD. Accompanying the development of the economy is the increase in the need to live and work. Companies start up when renting space has more strict requirements in the area, space, vision, even quality of works, …

Chart of vacancy rate and consumption of Grade A and Class B office space

>>> Read more: Ho Chi Minh City: Office For Rent Back To “Throne”

Green Certification (LEED) – the standard of office building development in 2017

Office projects that are focused on the quality of work, brand image as well as living space will gain more favor from tenants. 2017 is the time of the throne of the buildings with green certification (LEED), this is also a new focus of both tenants and investors name.

According to a survey by industry experts, planning complexes that are synchronized with the surrounding environment and are environmentally friendly will save energy, help improve overall health and productivity. Staff at the building. Therefore, the building with “green certificate” will be the focus to attract tenants.

In Vietnam, the “green building” model has been successfully implemented, in particular, some Grade A buildings have come into operation, such as the Deutsches Haus and the Mapletree Business Center. However, to meet this rigorous standard requires careful consideration from the developer, they need to map out a clear plan and consult with real estate professionals because it involves a lot of The key elements of the building are: project perspective, energy and water treatment, interior design, surrounding landscape, etc. Investors are required to use the strategy from the beginning of the project.

Masteri Millennium owns modern architecture with direct views of Bitexco Tower District 1

>>> Read more: Millennium Apartment Assets The Modern Living

Another concern of regional investors is the circulation network at the project. The worrying issue of mega-megacities in Southeast Asia, including Vietnam, is the excessive overwhelming of personal vehicles as compared to public transport, causing traffic congestion. The perfect solution for this situation is “subway construction”, which is expected to be effective and bring positive changes to the real estate market.

Officetel continues “hot”

Particularly for the Officetel segment – a mix of offices in high-end apartment projects, 2016 marked the boom of this new real estate, and 2017 is no exception. At a price not too high; Adjacent residential areas, cuisine, entertainment; The area is flexible and easy to rent, making it profitable for high investment, office-tel investors are interested and “hunting”.

In this segment, Masteri Millennium is perhaps the first and only project to provide permanent tenure to the investor over the average project life of 50 years. Plus the adjacent Wall Street financial Nguyen Cong Tru and less than 5 minutes to the center of District 1, 300 Officetel at Millennium are strongly sought. However, Thao Dien Investment owner has not opened the sale and announced the sale price of this office-tel until mid-May. The price is expected to be higher than the apartment price of 60 million / sqm.

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