HO CHI MINH CITY: The office rent rates in Vietnam’s biggest cities such as Ho Chi Minh City and Hanoi are among the highest in over 100 markets worldwide, according to an annual report released by British real estate services firm Knight Frank last week.
Ho Chi Minh City is the 19th and Hanoi (21st) most expensive markets with prime rents at US$38 and US$36.5 per square metre per month respectively, the report said.
The rates are more expensive than established markets like Manhattan (New York), Frankfurt (Germany ), Shanghai (China ), Brussels (Belgium ) and Rome( Italy), according to the Vietnam news agency.
However, the availability has increased in Vietnam, with both the cities seeing large amounts of new Grade A office supply during 2010.
This has caused vacancy rates to rise and put pressure on Grade A rents.
Meanwhile, demand remains strong in the Grade B and C office sectors, according to the report.
Elsewhere, the rental growth has been led by the world’s major financial centres, with office rents rising in cities such as London, New York, Hong Kong and Singapore, said the report.
In contrast, rents continue to come under downward pressure in a smaller group of markets, including Los Angeles, Madrid, Seoul and Dubai, where the economic outlook remains uncertain or availability of space is high.
