The value of sustainability
Evidence for green premium in HCMC, Vietnam
Green-certified Grade A office buildings are commanding rental premiums of up to 28% more than non-certified buildings in certain Asian markets such as Hong Kong, where the supply of green-certified office stock is relatively limited. For the Vietnam market, it is still relatively difficult to validate this trend, however, at JLL, we have been seeing multinational companies adopting their regional guidelines when it comes to selection of their office location, which needs to be a green certified building. These occupiers with net zero pledges are the main driving force behind green buildings in Vietnam. Globally, sustainability is becoming one of the top leasing criteria for corporate real estate leaders, and momentum is building for both international and national green certification standards, with LEED currently being the most prevalent, now followed by WELL certification in newer buildings.
Recently demand has been outstripping supply of green-certified stock in Vietnam market. When we look at future supply of buildings in major cities such as Ho Chi Minh City and Hanoi, the number of buildings that are LEED certified is limited, let alone buildings with WELL certification. However, the outlook is about to change with The Nexus, a newly developed premium grade A office on track to top out on 5th April 2023. This new development will be certified with LEED Gold and will be the first building in Vietnam that pursues WELL certification.
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