SUPPLY: Q2 2026 RECORDED NEW COMPLETIONS IN THE NON-CBD AREA
In Q2 2026, the market delivered approximately 20,440 sqm NLA of new supply from one Grade A project located in non-CBD areas. On a cumulative basis, total supply in H1 2026 reached over 50,300 sqm NLA across three projects (two Grade A and one Grade B), with the majority of new completions concentrated in the West. This reflects a continued development shift toward areas offering greater land availability and infrastructure advantages. Notably, all newly completed projects achieved LEED certification, indicating that ESG standards are becoming widely adopted market requirements, in line with the ongoing focus on asset quality enhancement and evolving tenant expectations. In H2 2026, approximately 60,000 sqm NLA is expected to enter the market in the West, further reinforcing its role in the office supply structure while intensifying competition within the high-quality segment.DEMAND: DIVERGING PERFORMANCE ACROSS GRADES
The market continued to exhibit diverging performance between Grade A and Grade B segments in Q2 2026. Grade A occupancy reached approximately 77%, (-1.4 ppts QoQ; +0.4 ppts YoY). The quarterly decline was primarily driven by the addition of newly completed projects, namely Oriental Square, Rox Tower Goldmark City, and The Office , which entered the market in H1 2026 and typically require a rampup period for absorption, rather than reflecting any weakening in occupier demand. Leasing demand for this grade remained stable, driven mainly by coworking, electronics, banking & finance and technology companies, with a preference for high-quality buildings meeting international operational standards.
In contrast, Grade B occupancy reached approximately 83%, (+0.4 ppts QoQ; -5.3 ppts YoY). Despite the YoY adjustment, occupancy remained at a relatively stable level, reflecting resilient demand for costefficient options. Grade B buildings located in well-connected areas continued to attract occupiers seeking to optimize occupancy costs amid an increasingly competitive environment. Overall, these dynamics suggest the market is forming two distinct demand trajectories: one centered on quality and ESG compliance within Grade A, and another prioritizing cost efficiency within Grade B.
RENT: MODERATE INCREASE RECORDED BOTH QOQ AND YOY
In Q2 2026, average asking rents for both Grade A and Grade B increased slightly, reaching approximately 32.2 USD/sqm/month (+0.1% QoQ; +0.5% YoY) and approximately 21.4 USD/sqm/month (+0.2% QoQ; +0.5% YoY), respectively.
OUTLOOK: RISING COMPETITION AMID HIGH-QUALITY FUTURE SUPPLY
During 2026–2028 period, the Hanoi office market is projected to add approximately 400,000 sqm of new supply. The West is expected to remain the dominant contributor, accounting for around 83% of the future pipeline and reinforcing its position as the market’s primary development hub. As new projects are increasingly delivered with higher technical specifications and green building certifications, competitive pressure on existing stock is expected to intensify, particularly for older assets. This trend is likely to encourage landlords to reposition their properties through refurbishment, upgrades, and operational improvements to maintain competitiveness and align with evolving tenant requirements.
