Businesses change their habits of choosing to rent offices in Ho Chi Minh City

After nearly half a year of difficulties in the office for lease in Ho Chi Minh city, the first few months of the fourth quarter of 2021 have recorded strong signs of recovery. Particularly, the segment of low-cost office space has received the most attention. 

1. The office market for rent in Ho Chi Minh City has changed a lot

1.1 Habits of the market

There are 3 "habits" in the journey of renting offices of businesses in Ho Chi Minh City. 

• High demand for office rental in the first period of the year

As noted, the previous habit of enterprises, only arising rental demand at the beginning of the year, at the end of the year, the demand for office rental in HCM sharply decreased the number of new corporate customers in the market, unless the office leased lease expiration or urgent needs.

Offices for lease in HCM have recorded strong signs of recovery

Businesses limit moving offices at the end of the year because the end of the year is the busiest period of the business (year-end summary, paperwork, reports...). For newly established businesses, there will be many limitations, continuous holidays will disrupt work. And a small part is due to the Vietnamese point of view, everything should start in the new year, then your work will be more convenient and smooth. 

• Often choose to rent an office in the central area 

For convenience in moving as well as using utilities, most businesses often choose to set up offices in central districts such as District 1, District 3, District 5, District 10, Phu Nhuan or Binh Thanh District. 

• Choose from traditional office types

Businesses often choose to rent traditional offices to facilitate the arrangement and arrangement according to needs. 

1.2 Change habits to adapt

After a long period of influence of the Covid epidemic, businesses have gradually adapted and have effective working solutions. However, there have been many changes in the working method as well as the "habit" of enterprises.

• Change to reduce cost burden

If the epidemic period in 2020 only affects small and medium enterprises, the period of May-October 2021 is considered a difficult time for the whole economy. Small and medium enterprises (SMEs) and foreign-invested enterprises and large-scale enterprises all have to change their organizational structure, size and form of work.

Strong finance is always the goal that all businesses aim for. However, during the period of social distancing, many industries have stopped operating, including production activities of factories. The most chosen method to optimize costs is to reduce the size of both personnel and area. 

According to recent records, the total vacancy of the high-end office segment, Grade A and B offices has increased rapidly. Foreign enterprises cannot enter Vietnam, so large enterprises in Vietnam tend to switch to more cost-effective office types.

Enterprises large and small all have to change their organizational structure, size and form of work.

• Move the office out of the central area

Currently, the number of businesses returning to the market still prioritizes looking for office space in District 2, or choosing office services for rent in Thu Duc city. Overcrowding in the central districts and the comprehensive development of infrastructure and economy in the East of the city has changed the "habit" of many businesses.

• Virtual office, office package - the optimal solution

During the implementation of Directive 16 of the government, most businesses have chosen to cut down on staff, fixed costs and change working models (teleworking, working online and exchanging via email, online applications such as google meet, zoom, ..). The office market for lease almost completely froze, especially the Grade A and B office segments, which are more dismal than ever. All activities of moving-new-rent-expanding office are stopped and waiting for the situation to stabilize.

In addition, many businesses have completely changed their working methods, in order to ensure the health and safety of personnel and optimize costs. Working remotely is still effective with connection tools, virtual office services, full-service offices are the perfect choice for businesses.

With a virtual office, employees can work remotely, from anywhere. All contact correspondence has been supported by the service provider. In addition, when the company needs to receive partners, the annual meeting is supported with a formal meeting room. 

Or businesses can use a package office to reduce initial investment costs (renovate offices, tables, chairs, equipment, etc.) as well as ensure that fixed costs are not incurred. 

2. Office rental market in the fourth quarter of 2021

The market has not shown any clear signs of improvement yet. Vacancy rates in Grade A and B office groups continued to increase as the number of customers gradually shifted to more economical segments. 

Office leasing services in the East of the city, District 7.. and the area outside the center is preferred, not only because of the price but also because of the outstanding development of this place.

Virtual office services, office packages are the perfect choice for businesses.

If you are a new business entering the market, which type of office will you choose to reduce risks?

If you are a large business that needs to optimize costs, which type of office will you choose? Which segment? 

Contact now 093 188 2101 so that we can bring you the best options