- HCMC will welcome five new Grade A buildings into the market in 2024, bringing 117,500 sq m of space into the market. Three out of the five buildings are located in the CBD.
- In 2025, two office projects in both CBD and non-CBD areas will be introduced into the HCMC market, providing new supply of about 165,000 sq m.
- From 2026 onwards, the market is expected to welcome about 85,000 sq m each year. Thu Thiem New Urban Area and Phu My Hung New Urban Area will emerge as new office hubs
- The Manufacturing, Information Technology (IT), Retail, and Healthcare industry sectors are experiencing the most leasing activity. Grade A new supply in the CBD and the East witnessed the most expansion and relocation activity in 2024, demonstrating that supply generally leads demand in Vietnam.
- Citywide net absorption of Grade A office space is expected to remain healthy in the upcoming year, driven by new and high quality supply.
- With a consistent stream of new supply, vacancy is expected to remain high, even exceeding 24%, starting from 2025 and remaining through to 2029.
- With new supply from non-CBD districts along with slowing demand due to economic challenges. landlords will likely remain cautious in rent offers and escalation throughout 2024.
- In 2024–2029, the HCMC average rent is forecast to remain stable, with a less than 1% change each year, except for a jump in rent forecast for 2025.
- Rent growth may jump up to 5% in 2025 with the entry of new supply in the CBD.
- The average rent growth surge of 5% is due to new supply in the CBD in 2025 but is expected to fall back to around 0.4%–0.5% with the introduction of additional new supply in the non-CBD in 2026.
- Generally, the HCMC office market rent growth is sensitive to new supply and economic conditions.
- New supply from Thu Thiem New Urban Area (neighboring the CBD) marked a significant step for this submarket to be an extension of the current CBD area.
- District 7 and Thu Thiem New Urban Area will rise as new business and commercial hubs of the city, due to affordable rents, newer projects with advanced technology, abundant space for new development, and potential new infrastructure.
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