SUPPLY: NO NEW SUPPY RECORDED IN Q2 2025
In the first half of 2025, the Hanoi office market welcomed only one new project – the Grade B ThaiSquare Caliria building, located in Central Business District Fringe (CBD Fringe). As of the end of Q2 2025, the total office stock in the entire market remained unchanged at 1.67 million m², due to no additional new supply in either the Grade A or Grade B segments, of which, Grade A offices accounted for approximately 45% of the total stock.DEMAND: MARKET PERFORMANCE DIVERGES BETWEEN THE TWO SEGMENTS
In Q2 2025, the Hanoi office market recorded a clear divergence between the Grade A and Grade B segments. Grade A offices saw a slight improvement in occupancy rate, reaching over 76%, up 1.98 percentage points from the previous quarter and 0.79 percentage points year-on-year. This increase was mainly driven by the completion of lease transactions initiated in the prior quarter, along with stable demand from enterprises in the Information Technology and Telecommunications sectors.Conversely, the Grade B office segment recorded an occupancy rate of around 89%, a slight decrease of 0.21 percentage points quarter-on-quarter and 0.61 percentage points year-on-year. This decline reflects the gradual shift of tenants to newer, more modern buildings – those featuring flexible design, optimal functionality, and better meeting the increasingly high requirements for user experience and environmental sustainability.
PRICE: DIVERGENT TRENDS BETWEEN THE TWO SEGMENTS
In Q2 2025, the average asking rent for Grade A offices in Hanoi reached 31.79 USD/sqm/month, virtually unchanged from the previous quarter (+0.05%) but up 2.33% year-on-year. This increase was mainly driven by price adjustments at several projects located in Central Business District (CBD) and CBD Fringe.
Meanwhile, the Grade B segment recorded a slight decline, with average rent down 0.89% QoQ and 0.47% YoY, as landlords implemented flexible pricing policies and attractive incentives to attract and retain tenants.
OUTLOOK: INTENSIFIED COMPETITION WITH UPCOMING HIGH-QUALITY SUPPLY
During the 2025–2027 period, the Hanoi office market is forecast to continue expanding robustly, with over 418,000 sqm of new office space expected to become operational. The West area is projected to lead future supply, accounting for approximately 74% of total new stock during this period. Facing growing competitive pressure, developers are focusing on projects that meet modern technical standards and achieve green building certification. This trend demonstrates a clear commitment to sustainability and innovation, aiming to better satisfy the increasingly high demands of tenants and investors.
Learn more by download our most recent Hanoi MarketBeat reports below.
