Can you afford not to be informed?
Industry experts from Savills Vietnam, Savills Hong Kong and Workthere shared valuable insights at a special event hosted by Savills Vietnam focusing on the transformation of the office market and the need for office occupiers to carefully consider their office occupancy costs.
The exclusive event provided invaluable insights from industry leaders, as well as networking opportunities with experts delivering in-depth updates on regional and Vietnam office trends.
Four senior industry experts presented at the seminar:
- Adam Evennett, Regional Director – Worldwide Occupier Services: Asia Pacific office and corporate real estate trends.
- Neil MacGregor, Managing Director – Savills Vietnam: Future office occupancy costs, can you afford not to be informed?
- Tu Thi Hong An, Associate Director – Commercial Leasing Savills Vietnam: Key future projects.
- Yann Deschamps, Head – Workthere: How flexible workspaces are changing the corporate real estate environment.
Mr. Adam Evennett, Regional Director Worldwide Occupier Services, Savills Asia Pacific commented: “During the first half of 2018, regional Grade ‘A’ Office Rents sustained a strong performance, led by Hong Kong and Tokyo, with prices continuing to rise. Regional market risks include core vs non-core commitments, price sensitivity as well as flexibility”.
According to Mr. Neil MacGregor, Managing Director of Savills Vietnam: “After Grade A rental growth of over 7% in 2017, momentum has continued in 2018 and is set to remain at record levels well into 2019 and beyond. It is crucial for office occupiers to carefully analyse their office needs, plan ahead and manage future occupancy costs effectively.”
Providing an introduction to Atlas – a co-working space in the future Grade A Alpha Town office building, Tu Thi Hong An, Associate Director, Commercial Leasing Savills HCMC believes that Vietnam has the potential for unprecedented growth in the office sector.
Ms. An added: “The Vietnamese market has the potential for the development of more sophisticated office projects, following all current global megatrends. The design, resources and functionality of offices will completely change in the coming years. If you consider all the numerous demand drivers and the requirements of today’s modern office occupiers, the opportunities are infinite”.
During the course of the event, Yann Deschamps, Head of Workthere stated that the upsurge of co-working spaces has set a new milestone in the office market.
“Co-working is not just about the sharing of infrastructure and costs; it is about belonging to a community. Spaces are designed to provide a productive and collaborative environment for dynamic inhabitants and created without corporate constraints on what is perceived to be an “office” environment.”
Mr. Deschamps added that the co-working realm is evolving faster in Asia than in other regions in the world and flexible workspaces will account for 15% of total office supply in Southeast Asia by 2030.
In Hong Kong, there are now more than 300 flexible workspaces, whilst Singapore hosts 176 spaces. Five major brands (TEC, Regus, CEO Suite, WeWork, and Fast Five) account for 80% of total co-working/serviced office space in Seoul, whilst Kuala Lumpur currently has 100 flexible workspace centers operated by more than 60 operators. Major players are now seeking future markets, such as Vietnam, Bangkok and Jakarta.
In Vietnam, the number of co-working spaces in Vietnam rose by 62% in 2017, driven by growth in start-ups and the need for cost-effective spaces, whilst the entry of international operators like Atlas will usher in a period of partnership agreements and M&A.
The first half of 2018 saw the Vietnamese office sector witnessing record occupancy levels with strong tenant demand, limited new supply and rapidly growing office rents.