HCM City Witnesses the Booming Growth of Shared Office Spaces

HCM City is witnessing a robust expansion of the shared office space model, with an expected supply increase of over 10,000 square meters this year. This growth reflects a shift in corporate workspace management thinking, as the rise of the digital economy and the adoption of hybrid working models drive more businesses to recognize the value of flexible workspaces.

Significant Growth in Shared Office Space Supply

According to data from the International Workplace Group (IWG), the world's leading provider of flexible workspaces, the company recently opened its 20th location in Vietnam, including its 9th workspace in HCM City. This new space, spanning 2,000 square meters, is located in Binh Thanh District. Additionally, IWG plans to introduce another 2,000 square meters of office space in District 4, bringing its total new supply for the year to 4,000 square meters.

This growth is not limited to IWG, as other providers are also entering the market. Since Q4 2024, HCM City has seen five new shared office spaces go into operation, including prominent Grade A office projects such as The Nexus (1,908 square meters) and Bitexco Financial Tower (1,063 square meters). By the end of this year, at least four more flexible workspaces are expected to launch, with a total estimated area exceeding 6,600 square meters, further stimulating the city's office market.

Remarkable Development of the Shared Office Market

A report from Knight Frank Vietnam indicates that HCM City currently has 125 flexible workspaces managed by 28 operators, with supply growing by 20-25% year-on-year. IWG research also highlights that Vietnam is experiencing the fastest growth in the shared office market in Southeast Asia, with this model now accounting for 5% of total commercial real estate supply—up from just 1-2% three years ago. By 2030, this proportion is projected to reach 30% of the global office market's total supply.

This trend reflects a strategic shift in businesses in the digital era. Companies are no longer bound by long-term lease agreements but instead opt for flexible solutions to optimize costs and enhance business expansion flexibility. This is particularly crucial as technology and AI reshape corporate operations.

Surging Demand for Flexible Office Space Rentals

The expansion of the shared office market is primarily driven by startups, SMEs, and multinational corporations newly entering the Vietnamese market. Data shows that tech companies account for 75% of shared office rental transactions, followed by the retail and pharmaceutical industries (15%).

The occupancy rate for shared office spaces in HCM City has consistently remained high, typically between 75-85%, with central business district (CBD) locations achieving occupancy rates of 85-90%. For example, an IWG-managed 1,000-square-meter workspace in District 1 has already accommodated more than 85 companies. In suburban areas, where rental costs are lower and infrastructure continues to improve, occupancy rates are also rising.

Future Development Trends

According to Lars Wittig, Senior Vice President of IWG North Asia & Asia Pacific, the integration of hybrid work models with AI technology will continue to shape the future of the shared office market. He predicts that by 2030, over 1.2 billion office workers worldwide will adopt this model, driving tremendous growth opportunities for the flexible workspace sector.

Furthermore, office space expansion is now extending beyond city centers. Nguyen Quynh Anh, Country Director of IWG Vietnam, revealed that the company plans to establish flexible workspaces in provinces such as Long An and Binh Duong and even expand into tourist cities like Phu Quoc, Nha Trang, and Vung Tau. This expansion aligns with labor migration trends and the increasing demand for interconnected business networks.

Beyond tech firms, industries such as finance, insurance, and online education are also shifting from traditional office models to flexible workspaces. This transition enables companies to scale up or down quickly based on actual needs, significantly reducing operational costs compared to long-term lease agreements.

The thriving shared office market in HCM City vividly illustrates the transformation of corporate operational models. With its cost efficiency, high flexibility, and rapid scalability, this model is expected to continue growing, not only in HCM City but also nationwide. For flexible workspace providers, this presents an excellent opportunity to expand market share and enhance customer experience.