Supply skyrockets, shared office rental prices in Ho Chi Minh City drop 34%

On the afternoon of August 30, Knight Frank Vietnam announced the latest research on the co-working space market in Ho Chi Minh City in 2023.

Rental prices for shared offices in Ho Chi Minh City have dropped by 34%. (Photo: D.V)

According to the study, the supply of co-working space increased by 16% across the city, while occupancy rates and asking rents decreased significantly.

Specifically, in July 2023, Ho Chi Minh City had a total of 95,300 m2 of co-working space, an increase of 12,800 m2 (16%) over the same period in 2022. However, the average occupancy rate was only 81%, down 5% compared to last year.

The asking price for shared office space in this segment decreased by 34% to 209 USD/person/month (more than 5 million VND/person/month). At the same time, the price for renting a personal seat also decreased by 35%, to only 139 USD/person/month (more than 3.3 million VND/person/month).

The main reason for the price drop is the surge in supply, especially in areas outside the city center. This has forced operators to lower rents to attract customers.

Data from Knight Frank Vietnam’s research shows that the occupancy rate of co-working spaces reaches 79% in the central area of Ho Chi Minh City, even reaching 87% in newly “emerging” areas such as Thu Duc City (especially Thao Dien Ward). This is a significantly higher figure than Phu Nhuan and Tan Binh districts (usually only at 40-50%).

" The above figures show that tenants have an increasing demand for prime rental locations. Small-scale tenants often want to share space with similar businesses and enjoy amenities and infrastructure from reputable suppliers and operators in the market," said a representative of Knight Frank Vietnam.

DAI VIET

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