The downturn in the real estate market has created huge opportunities for office tenants, according to real estate services provider Savills Vietnam.
As a result of rapidly diminishing demand and increasing supply, the office market is in decline and has had a significant impact on rental values.
In HCM City, at the market’s peak in 2008, grade B buildings were demanding rents of US$65-75 per square metre. They are now being marketed for $30-35, with room for further negotiation.
"An increase in supply and a decline in demand have meant that developers have had to start offering competitive rentals and large incentives to encourage new tenants and retain existing ones," Robert MacDonald, head of tenant representation and advisory services at Savills Vietnam, said.
