Paragon Corporation last week started construction on its high-rise office and commercial building at the new Phu My Hung urban centre in Ho Chi Minh City’s District 7, which aims to fill the demand for office space from high-end businesses.
High-rise haven: Paragon aims to meet the growing demand for office space
The Paragon Saigon building, located on an area of 37,162 square metres, will comprise 10 upper storeys for offices, trade centres, a cinema and restaurant, and two underground floors for parking.
The building is also located near trade districts, along with Nguyen Luong Bang Avenue, Tan Trao, Hoang Van Thai, Tay Bac Road and other inner roads, providing easy access to the city centre.
The A-level project has been designed in a classical style by well-known Japanese architect Katsuki Katsunori, who has already been involved in other properties in Vietnam such as the Omni Hotel, Sun Wah Tower, Southern Fortune building and Sunrise Hotel. Meinhardt Company will provide technical consultancy services.
The Paragon Saigon will cost roughly $20 million to build, 50 per cent of which will come from Singapore’s United Overseas Bank (UOB), according to the project developer Paragon Corporation.
Paragon Corporation was founded last September by a number of local businesses, including Khai Silk Corporation’s owner Hoang Khai and Viet Nhat Company Ltd’s CEO Le Hoai Anh, who currently runs the well-known chains of Qi Shiseido Salon & Spa in Vietnam.
“Once it is finished by early 2007, Saigon Paragon building will serve the increasing need for space to conduct business, shopping, entertaining and renting offices, which is becoming scarce in the city centre,” said Le Hoai Anh, Paragon Corp’s CEO.
She said the target market of the project will be those who are in need of high-end office space in the city. The building will also be a promising area for traders, retailers and restaurant operators.
“Many local and foreign clients have shown interest in the project, even though it is not finished. Our clients have already paid $5 million in deposits for space at Paragon Saigon,” she said.
Marc Townsend, managing director of CB Richard Ellis (CBRE) Vietnam which has just been selected as the exclusive marketing agent and management arm of the Saigon Paragon building project, said he hoped the increasing need of office and commercial space against limited supply would be promising good outlook for the project.
According to CBRE, most office buildings in Ho Chi Minh City are nearly full occupancy and the trend is likely to continue, leading to rent hikes and a shortage of high-quality office buildings for rent.
The growing demand, according to CBRE, is attributed to the country’s steady economic growth, the increase of new enterprises – both local and foreign – and the development of the export and service industry in the last few years.
In the long term, demand for office space will switch to lower grades like B and C, according to CBRE. If this happens, rent in these grades will also follow the same trends.
A CBRE survey showed that local companies are now aware of the advantages of opening offices in buildings managed by professional real estate services companies, due to the convenience and better corporate image among clients and business partners.