Skyrocketing supply causes shared office rental prices to drop more than 30%

According to a study on the Coworking space market - shared offices in Ho Chi Minh City in 2023, recently published by Knight Frank Vietnam, the supply of this type has increased by 16% across the city.

In July 2023 alone, Ho Chi Minh City had more than 95,000 square meters of co-working space, an increase of nearly 13,000 square meters compared to the same period last year. Due to the strong increase in supply, the market has also seen more competition, especially in areas outside the city center, causing the asking price for shared offices to drop by 34%, down to 209 USD/person/month. At the same time, the price for renting a personal seat also dropped by 35%, down to 139 USD/person/month.

However, with a 16% increase in supply, the average occupancy rate is still quite good at 81%, down 5% compared to the same period last year. Many experts still assess that these figures still reflect positivity and optimism for the shared office model.

The shared office model helps many people have cheap working space, saving a lot of costs.

According to a shared office business unit, this type is increasingly popular because it is suitable for the increasingly developing creative industry. In addition, with cheap rental prices compared to other segments, shared offices are also chosen by many companies and businesses due to the ability to optimize costs, without having to invest too much.

With increasing interest and investment in this type, in addition to discounts, businesses are increasingly offering many incentives to attract customers such as free rental time, free accompanying services, gifts on holidays, etc. In addition, many businesses also invest capital to create a modern working space, inspiring work for jobs that require creativity.

Through research, some office sharing units in Thao Dien (Thu Duc City) are also equipped with modern and convenient furniture such as bartending robots, soundproof meeting rooms, conference rooms, etc.

Mr. Leo Nguyen, Director of Strategy and Tenant Solutions at Knight Frank Vietnam, also commented: “A prestigious brand, impressive office services and amenities, trendy design, and prime location are the formula for success for co-working space operators. Many businesses are also looking to adjust their scale of operations, and co-working space operators are ideally positioned to provide this flexible solution.”

Amenities and services are the way for shared office businesses to retain and attract customers.

Knight Frank’s research data also shows that the occupancy rate at shared office business units can reach up to 87% in the new financial and business areas of Ho Chi Minh City. Even in the central area, the occupancy rate reaches 79%.

In the post-pandemic recovery period, the trend of returning to traditional offices is taking place in many places around the world. However, in Vietnam, the combination of remote work or flexible workplaces is still being applied. For that reason, the potential of shared offices is being strongly exploited, especially for young workers who like a free and comfortable space to motivate them to work.

Source: https://www.congluan.vn/nguon-cung-tang-vot-khien-gia-thue-van-phong-chia-se-giam-hon-30-post262739.html