Ho Chi Minh City is getting more co-working spaces

The third annual survey shows there are now 120 coworking spaces in the city, with five more planned to open by the end of the year.

Notable new buildings include The Nexus, which measures 1,908 square metres, and the Bitexco Financial Tower, which measures 1,063 square metres.

This year, the influx of premium space has seen absorption slow down, with occupancy rates dropping from 81% in last year’s survey to 73% today. However, Knight Frank expects this trend to ease soon as new tenants take up highly coveted space.

Leo Nguyen, director of occupier strategy and solutions at the firm, said: “Even with this influx of central supply, central locations recorded occupancy of around 85%, while non-CBD locations remained at around 70%, showing how strong the demand for these locations is.

“We expect this space to fill relatively quickly, with central locations likely to return to full occupancy, pushing the citywide average higher.”

The survey also found rents rose 4.5% year over year to an average of $219 per person per month.

Even greater growth was recorded in premium/A-class shopping centres, which are particularly sought after by international tenants, with average rents reaching USD 344.

In non-CBD locations, small and medium-sized enterprises and start-ups dominate, with new players emerging that offer a more diverse working environment than traditional serviced offices, co-working and hot desking.

“Technology and innovative startups have always been our priority,” said Greg Ohan, CEO and co-founder of The Sentry, a Class A coworking space provider.

“We are seeing significant growth in the IT outsourcing sector, with game development companies and AI start-ups being particularly prominent.

To meet this demand, we have partnered with RMIT, which acts as an incubator and accelerator for startups led by young entrepreneurs.

“We will also be developing a 10-story facility in District 12, within the QTSC (Quang Trung Software City) complex, with three floors dedicated to co-working space, with these tech companies in mind.”

Knight Frank says the trend is consistent with broader trends in the market, with new businesses looking for affordable space further afield with access to emerging technology parks nearby.

Nguyen said: “We have seen a rapid growth of some brands with non-central locations offering average prices of $96 per person per month, especially in Thu Duc City and District 12, where operators are looking to diversify their offerings to startups beyond simple workspaces to include services that include training, development and team building.”/.VNA