MATRIX OF OFFICE BUILDING RENT IN HO CHI MINH CITY
28/07/2010|INDUSTRY NEWS
According to VnExpress.net, the price of office for rent in Ho Chi Minh City is very large in the center of District 1. Specifically, Kumho Asiana Plaza building at the intersection of Le Duan - Hai Ba Trung, is Rent 45 USD per m2 a month. Meanwhile, the Vincom Center tower with 3 sides adjacent to Ly Tu Trong - Dong Khoi - Le Thanh Ton street is priced at US $ 35-40 per m2 per month. The 68-storey tallest tower Saigon is going to use is also located in the city center, Bitexco Financial, which is priced at an average of about 52 USD per m2 per month.
Along Ho Tung Mau route, District 1, Ho Chi Minh City, there is an office for rent 25 USD per m2 a month, there is also a tower offering 60 USD.
However, right in the center of the city, in Ho Tung Mau, Ham Nghi, District 1, there are still offices offering $ 25 rent per m2 a month. And A & B building is about to open with frontage adjacent to Le Lai Street in District 1, offering 30 USD per m2 per month. What makes customers confused when approaching the office rent matrix is that the standard Grade A, B or C buildings are still controversial and the market has no arbitration to determine which is the right rent. with real value.
Not only are the tenants confused, the investors themselves do not know what their buildings are. At a press conference to introduce A&B building, General Director of A&B Company Ha Van An explained the location, investment rate and how to apply scientific and technical advances to the building to increase the utility for people. Although using A-class standard, but A & B floor area does not meet the criteria, A & B has not determined the building class. "I can only commit to customers, when renting a building, they enjoy the quality of service and working environment on par with the standard Grade A building," Mr. An said.
Office buildings are growing more and more in Ho Chi Minh City. Photo: Vu Le.
Even, the real estate management consulting firm announced the difference between renting office buildings in the market. According to CBRE, the asking rent for Grade A offices is US $ 37.5 per m2 per month, Grade B reaches US $ 19.28 per m2 per month. Grade C is priced at USD 15 per m2 or less.
However, Savills's second quarter report, the average office rent bracket is: Grade A buildings cost US $ 59 per m2 per month; Grade B is recorded at 33 USD and Grade C is 22 USD per m2 per month.
Explaining the price difference as above, Deputy Director of CBRE's office leasing service Chris Currie told VnExpress.net: “Our survey results are based on data from more than 200 office buildings. rooms in Ho Chi Minh City area. The wider the sample, the lower the average rent frame will be below the ceiling price. ”
On the other hand, Mr. Chris said that the method of calculating the rent of the floor area according to net criteria (office area) or gross (office area and corridor area, walkways, public toilets, lobby ...) will be costing 20% difference, not to mention plus administration and service fees, value added tax.
Mr. Chris affirmed that the classification of Grade A, B and C office buildings does not affect the rental price of office market on the market, but it depends on the quality of service and utility of the building. First, this price bracket depends on the decision of the investor at different times of the market.
Grade A buildings in Ho Chi Minh City are considered by some experts to not meet Grade A standards according to international practices and are partially localized. Photo: Vu Le.
Research department of Savills Company, Ho Chi Minh City branch Truong An Duong said that the difference in the price bracket of renting buildings in the market is due to different methods of calculating rent costs. Specifically, according to Savills' calculation method, the published price bracket includes: leasing price of investor, service charge, security, security and public area in the building such as: corridor, walkway , toilet…
According to Mr. Duong, the average rental price index of office buildings in Ho Chi Minh City has been surveyed, researched and calculated based on the actual transaction volume of about 200 samples. In particular, the number of office buildings in district centers of districts 1 and 3 accounts for 50-60%. 40% are the center edge model. However, office buildings renovated from townhouses are not considered because these are non-professional office buildings.
This expert said that, if bringing international classification practices into Vietnam, there is no office building in Ho Chi Minh City that meets grade A. Currently, the buildings rated A in Ho Chi Minh City are somewhat localized.
CEO of GlobalHM Hotel Management School, Master Trang Minh Ha said, according to the Building Owners & Managers Associate International (BOMA), the office building is divided. The three main categories are A, B and C. Depending on habits, regional behavior and the development of technology, the classifications also vary from country to country.
European and American building classification criteria
According to Mr. Ha, Vietnam is applying a number of foreign classification criteria to determine the class of a building. This rating really affects the price bracket. Grade A buildings have a price premium of 15-30% higher than Grade B and 30% higher than Grade C buildings.
In terms of market economy, the two sides traded in the direction of "buy and sell". However, building owners have the right to self-classify and self-set prices, whereas tenants also have the right to choose products that suit their own needs.
Mr. Ha recommended that before deciding to rent an office building, customers should pay attention to some points. Firstly, the monthly cost of renting an office building must be consistent with the financial capability and business strategy of the company, at least 1 year or more, excluding the initial deposit.
Secondly, factors such as location, equipment, design and utilities ... The third is the quality of public area sanitation, insecticidal work, exits, parking spaces, work. fire protection…
Talking to VnExpress.net about this issue, Lecturer of Ho Chi Minh City University of Architecture said Doan Trinh Hien, in Vietnam the criteria for classifying high-rise buildings only stop at the parameters of functions and architecture. and texture. The design standards in fact also only generalize the parameters but do not represent all the utilities and services that the building offers to its users.
Currently, only condominiums are classified into four grades and hotels are calculated for perfection through the index of 3, 4, and 5 stars but still cause controversy in the professional world and have not been recognized by the world. Particularly for office buildings which are in a more sensitive situation, seeking official classification from the regulations of specialized agencies, there have been no documents mentioning it.
Vu Le
