Hanoi sees an influx in coworking supply and Grade A properties

The majority of coworking spaces and serviced offices in Vietnam are located in large cities like Hanoi, which has 64 locations

As global providers continue to expand across Vietnam, it is expected that the coworking supply in Hanoi would grow this year. Providers such as Compass and The Hive have stated their intentions to expand and seek valuable consolidation opportunities and partnerships.

Coworking & Flexible Workspace in Vietnam 2022, a research conducted by Acclime Vietnam, backed by Knight Frank, shows that multiple providers have emerged in the flexible workspace market and expanded rapidly.

“Hanoi is the second-largest economic center in Vietnam, where the percentage of coworking space supply in the city is 6% of the total office space supply. Most coworking spaces are located in grade A & B buildings which provide occupiers with elite workspaces and a highly professional atmosphere,” the report noted.

While foreign investors’ expansion plans in Vietnam were halted between 2020 and 2022, flexible workspace companies have grown in Ho Chi Minh City and Hanoi.

This trend will continue due to the robust market growth rate, demand drivers, and the structural mindset shift caused by the COVID-19 pandemic, which compelled businesses to shift to digital transformation. Also, engagement and flexible communication were emphasised as crucial factors in enhancing productivity.

The majority of coworking spaces and serviced offices in Vietnam are located in large cities like Hanoi, which has 64 locations.

More: The Asia Pacific region shows great enthusiasm for coworking spaces

Ultimately, Alex Crane, managing director of Knight Frank Vietnam, said flexible space is not only for corporate occupiers considering hybrid-driven workplace models but also for start-ups, which are currently thriving in Vietnam.

Meanwhile, Savills Vietnam revealed that Grade A buildings are entering the Hanoi market at the end of the year, where six new projects will be launched, reported VietnamPlus.

Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Hanoi, noted that while Hanoi’s office supply is lower than the likes of Thailand or Singapore, there is great potential for economic growth. 

It is forecasted that the office market will perform well this year and that demand will come primarily from tenants in IT, finance, insurance, and real estate (FIRE).

The Property Report editors wrote this article. For more information, email: [email protected].