Office fit out cost in Vietnam second best in Asia Pacific: Cushman & Wakefield

By Tuong Minh
Wed, April 5, 2023 | 10:47 am GMT+7

Vietnam’s Ho Chi Minh City and Hanoi are the second most affordable in Asia Pacific in terms of office fit out cost among 32 countries surveyed, just after India’s, according to property services firm Cushman & Wakefield.

Cushman & Wakefield’s 2023 Asia Pacific Office Fit Out Cost Guide, released on Tuesday, shows that persistent inflation, tight labor markets, and ongoing supply chain delays have increased average fit out costs across the region.

Office fit out costs in Hanoi and Ho Chi Minh City are the second most affordable in Asia Pacific. Photo courtesy of Cushman & Wakefield.

Office fit out costs in Hanoi and Ho Chi Minh City are the second most affordable in Asia Pacific. Photo courtesy of Cushman & Wakefield.

The average cost in HCMC and Hanoi, according to the report, is $63 and $64 per square foot, respectively. In several of the Indian cities surveyed, the common level is $60, but $64 in Delhi and $68 in Mumbai. The cost in Indonesia’s Jakarta is $72; while those in Kuala Lumpur, Bangkok, and Manila are $83, $85, and $92. China’s Shanghai and Guangzhou have it at $114 and $115, the study shows.

“In Vietnam, we’re seeing longer lead times due to manufacturing and supply chain issues from China and other supply countries,” said Riaz Khan, Cushman & Wakefield’s head of project & development services in Southeast Asia.

“Pricing remains competitive, but chairs and tables imported from China increased by more than 21% because of new taxation. Audio and visual products have been taking more than 10 weeks for lead time because of the global lack of chips,” he said.

For the Vietnamese office market, Trang Bui, country head of Cushman & Wakefield Vietnam, said: “The government has recently raised the standards of fire prevention and fighting in construction. Meanwhile, office lease transactions in recent years have happened mainly in existing buildings, due to the scarcity of new office supply that has achieved the new fire protection standards, which makes the completion time even longer than before.”

Cushman & Wakefield’s Asia Pacific head of project & development services, Tom Gibson, said despite higher costs and constraints on capital expenditure, the conversation with occupiers remained focused on the changing working environment.

“How much space do I need, and what is it going to look like?” he said. “Finding the balance between working from home and having people in the office, and how the right design can facilitate that, is still the number one conversation in most markets.”

Gibson said general economic volatility had slowed occupiers’ decision-making as capital expenditure across all sectors came under closer scrutiny. But he said the flight to quality being witnessed in leasing transactions was also being reflected in fit out decisions.

“Occupiers are looking at how they can optimize their spending. They see real estate as an essential expense and so they are looking to use their real estate to improve the employee experience.”

Comments (0)
  • Read More
Vietnam becomes Australia’s fastest-growing inbound market

Vietnam becomes Australia’s fastest-growing inbound market

The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.

Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7

Study finds shift in Thai consumers’ spending patterns

Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7

Energy security, digitalization key to Indonesia's economic growth

Energy security, digitalization key to Indonesia's economic growth

The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.

Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.

Politics - Fri, November 1, 2024 | 9:25 pm GMT+7

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam, Qatar look to tap potential for energy, oil & gas collaboration

Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.

Politics - Fri, November 1, 2024 | 9:02 pm GMT+7

Thailand bans export of raw palm oil until December

Thailand bans export of raw palm oil until December

Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.

Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7

Envision Energy to build $420 mln wind power plant in Vietnam from June 2025

Envision Energy to build $420 mln wind power plant in Vietnam from June 2025

Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.

Energy - Fri, November 1, 2024 | 8:30 pm GMT+7

Indonesia to ban plastic waste imports from 2025

Indonesia to ban plastic waste imports from 2025

The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.

Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7

Islamic economy makes up 48% of Indonesia’s GDP

Islamic economy makes up 48% of Indonesia’s GDP

The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).

Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7

Restructured construction giant Tracodi gets set to execute ambitious plans

Restructured construction giant Tracodi gets set to execute ambitious plans

After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.

Bamboo Capital - Fri, November 1, 2024 | 4:43 pm GMT+7

Philippines requests companies to pay for plastic waste treatment

Philippines requests companies to pay for plastic waste treatment

The Philippines expects its "Extended Producer Responsibility" (EPR) that came into force last year will help it curb plastic waste

Southeast Asia - Fri, November 1, 2024 | 4:30 pm GMT+7

Indonesia warns of rising online terrorism

Indonesia warns of rising online terrorism

Indonesia's National Counter-Terrorism Agency (BNPT) has warned of a shift in terrorism tactics, moving from public attacks to online platforms that target vulnerable groups, particularly women and children.

Southeast Asia - Fri, November 1, 2024 | 4:29 pm GMT+7

Singapore establishes global fintech network

Singapore establishes global fintech network

The Monetary Authority of Singapore (MAS) on Wednesday announced that it has established a “Global Finance & Technology Network” (GFTN) to propel Singapore’s reputation as a premier global fintech hub into its next phase and enhance global connectivity.

Southeast Asia - Fri, November 1, 2024 | 4:28 pm GMT+7

Nokia, Viettel deploy 1.2 Tb/s optics transmission in Vietnam, to help 5G growth

Nokia, Viettel deploy 1.2 Tb/s optics transmission in Vietnam, to help 5G growth

Finnish giant Nokia and Vietnamese telco Viettel have rolled out high-capacity optical network after achieving an optics transmission speed record of 1.2Tb a second per wavelength in Vietnam.

Companies - Fri, November 1, 2024 | 3:40 pm GMT+7

Korea SK Group sells 76 mln shares of Vietnam’s Masan, no longer major shareholder

Korea SK Group sells 76 mln shares of Vietnam’s Masan, no longer major shareholder

South Korea’s chaebol SK Group has sold 76.28 million shares of Vietnam’s conglomerate Masan, lowering its ownership in Masan to 3.67% of the charter capital and 3.86% of the voting shares.

Companies - Fri, November 1, 2024 | 3:16 pm GMT+7

HCMC-based Bamboo Capital's energy arm fulfils 98% of profit target in 9 months

HCMC-based Bamboo Capital's energy arm fulfils 98% of profit target in 9 months

BCG Energy JSC, a subsidiary of Vietnamese private conglomerate Bamboo Capital Group, posted a consolidated after-tax profit of VND504 billion ($19.94 million) in the first nine months of 2024, fulfilling 98% of the year's profit target.

Bamboo Capital - Fri, November 1, 2024 | 2:32 pm GMT+7