The excitement surrounding OfficeHaus’ expected opening in December is hyping up Saigon’s outlook, dynamic workforce and the office market’s shift towards areas outside commercial business districts.
OfficeHaus sits at the heart of Celadon City in Tan Phu District, an emerging business destination in the northwestern part of Saigon. As the city’s office real estate gets burdened by burgeoning demand for quality workspaces, the occupancy rate of office buildings at the center of Saigon has now exceeded 90%.
Savills Vietnam representative Ms. Lai Thi Nhu Quynh said the number could reach up to 97%, even in the Grade A office segment, as supply-demand imbalance persists in major commercial districts such as Districts 1 and 3.
“Many businesses are moving to alternative locations in non-CBD areas, where they can get reduced rental costs and more competitive operating and personnel costs,” Ms. Quynh explained, adding that non-CBD areas also offer outstanding facilities and more green spaces for a better working environment.
This current trend in the office market is supported by a new survey conducted by Infocus Mekong Research, noting Tan Phu District’s catchment area as an ideal location to grow the business and attract talent.
Tan Phu covers an area of 16 square kilometers, located next to Tan Son Nhat International Airport and taking only approximately 30 minutes drive from District 1. As bordering many districts like Tan Binh, Tan Phu, Go Vap, Phu Nhuan, Binh Thanh, District 3, 10, and 12 are known as promising areas for the office market in HCMC.
This study provides future tenants with an accurate and broad overview of the potential staff pool in terms of availability, skill sets, mobility, and the attractiveness of OfficeHaus, within its 7-kilometer-radius catchment area.
High-quality human resources
Ho Chi Minh City is home to more than 9.4 million people, 3.2 million of whom live within the OfficeHaus’ catchment area. The population is expected to grow to 4 million in 2024, presenting great potential for OfficeHaus’ expanding market.
Notably, OfficeHaus’ catchment area benefits from a highly educated population, with 79% of the survey respondents indicating they hold university degrees, while 7% have obtained post-graduate degrees (MBA/Ph.D.). A significant fraction of the population has also studied specific skill sets — from information technology to business, engineering, accounting, and design — that would make them ideal human resources.
The catchment area’s educated populace makes sense, given that the 12 districts surrounding Tan Phu are home to 24 universities and 13 colleges serving about 260,000 students annually. Within Tan Phu alone, one university and two colleges host more than 20,000 students.
Besides, Infocus Mekong’s survey found areas near Tan Phu have a slightly younger population than anywhere else in the city, with the headcount dominated by the 20-40 age segment at 84%. A younger working-age population means a bountiful natural human resource would bring advantages to enterprises planning to make OfficeHaus their long-term home. They create a demographic dividend that plays a significant role in allowing businesses to thrive sustainably.
Action within reach
While OfficeHaus is relatively far from the frantic activity of CBDs, its catchment area is highly accessible from all sides of the city. Survey respondents find the journey to and from these parts of a rather busy metropolitan hassle-free.
Almost three-quarters of the surveyed individuals said their average work travel time is 20-25 minutes for a distance of 7-8 kilometers, falling well within the 7 km catchment area. About 74% said they use motorcycles, allowing them to navigate the traffic easily. About 13% travel by car. With road expansions planned in the coming years, the use of cars as preferred work transport could reach beyond 25% in the next five years.
In addition, the rise of prominent real estate properties in Tan Phu and its neighboring districts offers office workers suitable living and housing conditions. Celadon City is a promising environmentally-sustainable and holistically-planned township that facilitates healthy living.
‘Yes’ to OfficeHaus
When survey respondents were asked if they would be willing to move to a company based in OfficeHaus, without knowing what the building looked like, 64% said yes. When shown its video and short description, the positive response increased by 4 percentage points —with a very high score in terms of appeal, potential, and conversion. Respondents highlighted the facilities and modern design as major encouraging factors, as well as its proximity to Aeon Mall.
Evidently, OfficeHaus, with the upcoming Mercedes car showroom on the ground floor, has a unique employment appeal that captures the interest of the earning population within its 7-km catchment area. The Bauhaus-inspired design, contactless technology, and vast workspaces (currently the largest floor plates in the local market) give it a substantial advantage in attracting big-space users, including those in the IT, gaming, finance, and sales sectors.
With its proven attractiveness to potential workers and North-West Saigon’s valuable demographics combined, OfficeHaus positions itself as a premier business address for a new generation of enterprises and the labor force.