SUPPLY: OVER 5,000 SQM OF NEW OFFICE SPACE FOR LEASE
In Q2 2025, the HCMC office market recorded one new Grade B project, adding over 5,500 sqm of leasable space. This brought total existing stock in HCMC to approximately 1.64 million sqm of leasable office space, up 0.3% quarter-on-quarter and 1.4% year-on-year.DEMAND: A SHIFT TOWARD CBD FRINGE
In Q2 2025, net absorption in HCMC declined. One key driver was the migration of leasing demand to lower-grade segments or from CBD to CBD Fringe—where rents are more reasonable and new projects benefit from fully completed infrastructure.Occupancy rates in both segments dipped slightly: Grade A offices achieved 88%, down about 1.16 percentage points from Q1 2025, while Grade B recorded 89%, down 0.76 percentage points quarter-on-quarter.
PRICE: WIDE DIVERGENCE BETWEEN CBD AND CBD FRINGE
Grade A offices in CBD fetched USD 62.09/sqm/month in Q2 2025, versus USD 40.70/sqm/month in CBD Fringe—a pronounced gap between the two areas. However, CBD rents remained about 3.2% below their Q2 2024 level. For Grade B, rents were USD 44.76/sqm/month in CBD and USD 28.27/sqm/month in CBD Fringe, likewise reflecting a substantial divergence. Compared with Q2 2024, Grade B rents showed no significant change.
MARKET OUTLOOK
In 2025, HCMC is expected to welcome 103,559 sqm of new office space from CBD projects. From 2025-2027F, the market may absorb an additional 287,539 sqm, primarily delivered in Thu Duc City, District 7, and District 1.The information-technology, pharmaceutical, banking, and high-tech sectors will remain the main engines of office demand in HCMC. Firms in these industries not only seek high-quality workspaces but also place special emphasis on smart-building technologies and sustainable work environments—driving a continued shift toward premium offices, especially green-certified buildings.
Learn more by download our most recent HCMC MarketBeat reports below.
