The rental costs of Grade B and Grade C offices in HCM City have dropped recently, following a year of steadily increasing prices.
The average price for Grade B and C buildings stands at US$36 and $28.7
per sq.m a month, respectively, a drop of 15-30 per cent since January
last year.
The average price for Grade B and C buildings stands at
US$36 and $28.7 per sq.m a month, respectively, a drop of 15-30 per
cent since January last year.
Prices dropped during 2008 as more
buildings came onto the market and companies cut back in the wake of
the global financial crisis.
David Blackhall, deputy managing
director of VinaCapital Real Estate, said prices for these office
buildings were expected to fall 2009 as well.
However, rental
prices for Grade A office buildings, of which there is a shortage on
the market, will continue to go up, real estate officials have said.
The average rental in a Grade A office building is $60 per sq.m a month compared to $35 per sq.m a month in early 2007.
Experts
predicted the rental prices of Grade A offices could fall in the near
future when two Grade A office buildings, the 27,000sq.m Centec Tower
and the 3 1,000 sq.m. Asiana Plaza, open their doors, accounting for 70
per cent of the current Grade A office space.
However, the two
buildings are now renting space at $70-90 per sq.m a month, which could
keep prices high at other Grade A office buildings next year, other
property experts said.
Criteria for Grade A office buildings
include a minimum of 850sq.m on one floor, central air conditioning, a
helicopter pad, at least one parking space for each 100sq.m, and
management by an international company.
Requirements for Grade B buildings are less demanding, with smaller floor areas, parking lots and no helicopter pad.
According
to real estate companies, the city is expected to have an additional
900,000 sq.m of office space in the next five years. Of the figure,
75-80 per cent will be in the city's centre.