Ho Chi Minh City has become the sixth most expensive city in Asia-Pacific to lease premium office space, according to a study by Knight Frank Vietnam.

The second KFVN1000 Index, which measures how many sq m of Grade A office space $1,000 can lease a month in 21 cities around the world, puts Ho Chi Minh City, with 19.9 sq m, behind only Hong Kong (China) with 7 sq m, Singapore with 11.4 sq m, Seoul with 13.7 sq m, Sydney with 14.3 sq m, and Tokyo with 15.7 sq m in the Asia-Pacific.

It also places 11th in the world, just behind New York.

Mr. Leo Nguyen, Knight Frank Vietnam’s Director of Occupier Strategy & Solutions, said its placing near the top of the regional leader board sees Ho Chi Minh City overtake Taipei in Taiwan ( China) and may well be the high watermark for the southern city’s office market.

“We will see a massive influx of new Grade A inventory entering the market between now and year’s end and are predicting rental decreases of between 10 per cent and 20 per cent over the next two years as the market moves from landlord-favorable to tenant-favorable,” he added.

Hanoi, the fourth most affordable city in the 2022 Index, was fifth this year, with tenants receiving 37.6 sq m for their $1,000, up slightly from last year’s 36.2 sq m.