Demand for offices is forecast to increase sharply in 2018 thanks to the improved economy, while the number of co-working spaces will also expand proportionally.
|Demand for offices is expected to increase sharply in 2018 |
First appearing in Vietnam in 2012, co-working spaces have been expanding rapidly with the presence of 17 investors, providing 12,500 square meters of office area, mostly in Hanoi and HCMC. In mid-2017, CBRE Vietnam, a real estate service provider, released a report on the popularity of co-working spaces in Vietnam.
Initial steps In 2007-2008, several investors including Regus, Lac Viet and IncomNet began developing the so called ‘virtual offices’ in central business districts of Hanoi and HCMC to meet demand from small and medium enterprises and from foreign companies which come to Vietnam to implement short-term projects. The virtual offices then had rent of VND12-13 million a month. Later, real estate investors developed a new model – officetel, or apartments of 30 square meters, in which owners can both live and use as offices. And in the last two years, co-working spaces have taken shape and developed. In HCMC, Dreamplex, a three-storey co-working space with total area of 1,500 square meters, comprising 35 rooms, became operational in November 2015. In September 2015, in Hanoi, Toong, with the area of 750 square meters, debuted with rent of $4 for 3 hours and $446 a month.
According to CBRE Vietnam, the supply of co-working spaces has increased by 58 percent per annum in the last few years. Investors are optimistic about the future of co-working development business in Vietnam. Some investment funds have invested in chains, while some foreign companies are considering joining the Vietnamese market. OpenAsia, for example, has invested in Toong, and Gaw Capitals in the Naked Hub. By the end of June 2017, co-working spaces amounted to 0.5 percent of total area of A- and B-class offices in Hanoi and HCMC. If the current growth rate of 50 percent continues, the figure will rise to 2 percent by 2020. CBRE believes that co-working space runners such as Toong, Dreamplex and Up will develop new spaces to expand their market share. Nguyen Trung Tin, an investor in Dreamplex, said besides Dreamplex 1 and Dreamplex 2, the third Dreamplex will be set up in the central area of HCMC in 2018. Vietnamese and foreign investors are also eyeing the Vietnamese market. Keppel Land Vietnam is developing Kloud serviced Co-office in the Saigon Centre building in district 1 in HCMC Meanwhile, sources said a well-known European real estate management brand is preparing to open its co-working and co-living area in district 1 in HCMC.