With Tan Phu District stealing the limelight amid the growing 'Hub & Spoke' model for offices, the current market for office space in Ho Chi Minh City is changing rapidly, said a statement recently released by Savills Vietnam.
It is no secret that the COVID-19 pandemic has changed all aspects of people’s lives, perhaps no aspect more than their working lives.
Hybrid working is no longer a ‘nice-to-have’ for many people across the world, now it is a must-have.
Employers have to adapt and so have those in the commercial real estate sector.
The situation in Vietnam is no different, with co-working office supply growing six percent year on year in 2020 and three percent in 2021, said the property service provider.
While these statistics indicate growth is slowing, the changes the pandemic has brought will not go away anytime soon.
Co-working is here to stay and Savills Vietnam predicts demand for this type of office space to grow this year, based on Vietnam’s positive economic outlook for 2022.
Employees now need more than just a desk, they need an office that adds value.
From this, there has been a new trend called Hub & Spoke, which combines a satellite office model with a core office model.
Together with the growing hybrid workplace trend after the lockdowns, companies are starting to offer employees a flexibility never-before seen
By doing so, employers are prioritizing efficiency and productivity in a modern sense.
“The post-lockdown market is resilient with high demand and low supply," said Tu Thi Hong An, Savills Vietnam’s commercial leasing director in Ho Chi Minh City.
"Hybrid offices are becoming increasingly popular, and now are a viable and cost-effective solution.
“Tenants from the IT sector are the most active, seeking offices across all grades.
"Despite a supply shortage, rents are unlikely to further increase as small office absorption is slowing down.”
With these new trends, it is expected that there will be a strong push for companies to build satellite offices around the city to cater to their workforce.
Offices will be designed to be more spacious and offer modern amenities without the expensive prices in the city’s central business district (CBD).
However, as with many large cities around the world, the southern city’s CBD is packed. Space for anything comes at a premium in this bustling metropolis, and it is the same in the office market.
With a land area of 16 square kilometers and a population in excess of 485,000, Tan Phu is in the heart of Ho Chi Minh City and a short drive from the key industrial areas of Binh Duong Province.
The district has room for spacious offices with the clean and beautiful modern facilities that the modern business must have to keep employees happy and productive.
Oliver Brazier, director of a high-class office building, stressed that Tan Phu is a new and exciting hub for the world of offices in Ho Chi Minh City because it is not overly crowded with office buildings.
“However, if you look at the statistics about population, infrastructure, and the connectivity with other office spaces, it shows the potential of this area,” Brazier said.
“With lower costs and a bustling population, Tan Phu is perfect for a young and dynamic workforce in diverse industries such as IT, engineering, e-commerce and creative fields such as design."