Relocating to District 3

If your company is paying a significant office rent in District 1 and wondering whether the cost is truly justified — you are not alone. In fact, many companies are now relocating to District 3 to optimize operational costs while maintaining their professional brand presence.

In this article, See The Space provides a detailed comparison of office rental costs, a relocation roadmap that minimizes business disruption, and answers an important question: When is the right time to move your office?

Moving Your Office from District 1 to District 3: Real Numbers & an Optimized Relocation Plan

1. Business Address Reputation & Brand Positioning

If you are currently renting an office in District 1 and questioning whether the cost is truly necessary, you are not the only one. This is one of the most common questions See The Space receives from growing businesses that want tighter control over operating expenses.

2. Operational Habits and Inertia

District 3 has long been considered a strong alternative for many companies in Ho Chi Minh City. It sits right next to District 1, offers mature office infrastructure, and most importantly — significantly lower rental costs.

But how significant is that difference? And when does relocating actually make financial sense?

3. Lack of Real Market Comparison Data

To make a confident relocation decision, companies need clear answers:

How much cheaper is District 3 compared to District 1?
Is the office quality comparable?
Will the location impact hiring or client meetings?

Without this information, many businesses choose to stay simply because it feels safer.

This is exactly the gap that See The Space helps fill.

See The Space acts as a tenant advisory and representation firm — not a workspace operator. All data in this article is based on real market insights from our advisory projects.
Our service is 100% free for tenants.

1. Why Do Businesses Accept Higher Costs in District 1?

Before discussing potential savings, it’s important to understand why companies are willing to pay premium prices for District 1 offices.

There are three main reasons — and not all apply to every business.

Reason 1: Address Prestige

A District 1 address on business cards and contracts signals prestige and corporate positioning.

This can be particularly valuable for industries such as:

Finance
Legal services
Strategic consulting
Firms frequently hosting C-suite clients

However, for most companies — especially technology firms, agencies, startups, and B2B businesses — clients usually care more about service quality than the postal code.

Sometimes this factor is overestimated.

Reason 2: Habit and Operational Inertia

Many companies remain in District 1 simply because they started there and have never reassessed whether it still makes sense.

Office relocation appears complex and time-consuming, so the decision is often postponed even when the numbers no longer justify the cost.

Reason 3: Lack of Comparable Market Information

To consider relocating, businesses need to know:

How much cheaper District 3 actually is
Whether infrastructure quality is similar
Whether location impacts recruitment or client meetings

Without reliable data, many companies choose the “safe option” — staying where they are.

2. Real Office Rental Cost Comparison: District 1 vs District 3

Estimated Budget by Team Size (10 – 50 Employees)

Below is an estimated comparison based on market data collected by See The Space through our advisory work.

Note: figures may vary depending on building grade, office type, and market timing.

Cost Category	District 1 (Est.)	District 3 (Est.)	Monthly Savings
Rent (10 employees)	35–55M VND	22–38M VND	~13–17M ✓
Rent (30 employees)	90–150M VND	60–100M VND	~30–50M ✓
Rent (50 employees)	150–250M VND	100–170M VND	~50–80M ✓
Car parking (5 cars)	3–5M VND	2–3.5M VND	~1–1.5M ✓
Meeting room usage	300–500K/hr	200–350K/hr	~30–40% ✓
Minimum contract term	6–12 months	3–6 months	More flexible ✓

Prices estimated for Private Office packages in Grade B and B+ buildings.

A 30-person company relocating from District 1 to District 3 could save 30–50 million VND per month, equivalent to 360–600 million VND per year.

That amount could fund 2–3 additional hires, marketing investment, or product development.

Hidden Costs Often Overlooked

When comparing office options, many businesses focus only on the price per seat per month, ignoring additional costs that can increase total expenses by 20–35%:

Parking fees (District 1 typically 30–50% higher)
Meeting room over-quota charges
One-time fit-out and relocation costs
Additional electricity or air-conditioning charges

3. Is District 3 Really Inferior to District 1?

The answer depends on your business type.

Accessibility

District 3 to District 1: 5–10 minutes via Nguyen Thi Minh Khai, Dien Bien Phu, or Nam Ky Khoi Nghia
Airport access: In some cases, District 3 is actually closer to Tan Son Nhat Airport
Amenities: Restaurants, banks, hospitals, and supermarkets are all within walking distance
Metro development: Metro Line 2 will further improve accessibility

Industries That Should Remain in District 1

Some sectors genuinely benefit from a CBD core address:

Finance and investment firms
High-end legal practices
Multinational corporations (MNCs)
Luxury brands and premium service providers

Industries That Benefit More from District 3

For most businesses, District 3 offers better cost efficiency without compromising operations:

Technology and software companies
Creative and marketing agencies
SME consulting firms
E-commerce businesses
Education and healthcare organizations

Based on our advisory experience, 7 out of 10 companies currently located in District 1 could relocate to District 3 without operational impact while achieving meaningful cost savings.

4. When Is the Right Time to Relocate?

5 Signs Your Company Should Consider Moving

Your current lease expires within 4–6 months
Your team has outgrown the current space
Leadership is reviewing fixed operational costs
Your company has shifted to hybrid work
Your building is deteriorating or rent increases significantly

When You Should NOT Relocate

During major contract negotiations
When early termination penalties are too high
Right before peak business periods

5. A Relocation Roadmap Without Business Disruption

A well-planned move does not have to interrupt operations.

Typical Timeline

Stage	Timeline	Key Actions
Planning	1–2 months before	Define requirements and budget
Search & site visits	4–6 weeks before	Review options and tour offices
Negotiation	3–4 weeks before	Finalize lease terms
Internal announcement	3 weeks before	Inform employees
Office setup	1–2 weeks before	Install equipment and internet
Move-in day	Day D	Begin operations at new location

Companies that start planning 2–3 months before lease expiry typically experience the smoothest transitions.

6. The Role of See The Space – Tenant Representation at No Cost

See The Space supports businesses throughout the entire relocation process:

Reviewing the current lease agreement
Calculating total relocation costs and savings
Identifying suitable District 3 office options
Negotiating better rental terms
Reviewing lease contracts before signing
Supporting handover and move-in

All services are 100% free for tenants.
See The Space is compensated by workspace operators upon successful transactions.

Frequently Asked Questions

Will moving from District 1 to District 3 hurt our brand image?

For most SMEs, startups, and tech companies — the impact is minimal. District 3 is a well-established commercial area with many reputable businesses.

My lease in District 1 still has 6 months remaining. Should I move now?

It depends on the early termination penalty versus the potential savings. In many cases, waiting until the contract expires is financially smarter.

Will employees resist relocating?

Most employees care about: