Vietnam's Property Market Becomes Hotter

Source : The Business Times, January 29, 2008

(HANOI) Rents in major cities of Vietnam have skyrocketed and there are few signs the market will cool in the next few years as demand continues to vastly outstrip supply, local newspaper Vietnam Investment Review reported yesterday.

'We predict that office rents will peak in 18 months at more than US$100 per square metre per month for Grade A space, with Grade B space reaching as much as US$90 per square metre,' the newspaper quoted Brett Ashton, managing director of Savills Vietnam, as saying.

Office rents in southern Ho Chi Minh City already topped US$70 per square metre per month, a significant increase over the US$45-50 per square metre seen late last year.

Property consultants attribute skyrocketing rents on a serious supply and demand imbalance, said the newspaper.