SUPPLY: NEW ADDITION TO THE MARKET
In the first three months of 2025, the total supply of office space in Ho Chi Minh City experienced a change, reaching 1,639,226 sq m, as new supply near the airport added almost 5,000 sq m to the market.
DEMAND: GROWTH IN OCCUPANCY RATE
The office rental market in Ho Chi Minh City continued to show positive signs in the early months of 2025. The Grade A segment achieved an occupancy rate of 89.35%, increasing by 2.25 percentage points QoQ and 4.45 percentage points YoY. Similarly, the Grade B segment also showed stability and growth with an occupancy rate of 89.96%, increasing by 3.34 percentage points QoQ and 3.55 percentage points YoY. The market's growth momentum continues to be driven by rental demand from the information technology, pharmaceuticals, banking, and high-tech sectors. Businesses are now not only seeking quality workspaces but also paying special attention to smart solutions and sustainable work environments, promoting the trend of choosing premium offices, especially buildings with green certifications.
PRICE: SLIGHT FLUCTUATION
With Grade A office rent reaching $54.05 per square meter per month, a quarterly growth of 0.7% but a 3.7% decrease YoY indicates a balance in the pricing strategy of investors. Similarly, Grade B office rent at $34.17 per square meter per month with a slight increase of nearly 1% QoQ and 0.8% YoY reinforces this observation. Clearly, in the context of the market expected to witness abundant supply in 2025 and the uncertainties of the economy, the top priority for Grade A and B office landlords is to focus on filling vacant spaces. Maintaining stable prices, even with slight adjustments, is a reasonable strategy to attract and retain tenants.
OUTLOOK: NEW SUPPLY WAVE STILL FOCUSED IN CENTRAL AND SOUTHERN AREAS
HCMC’s office market is on the brink of significant supply growth, with an estimated nearly 114,000 sq.m in 2025 and approximately 150,000 sq.m in the next two years, mainly concentrated in developing areas like Thu Thiem and Phu My Hung. The emergence of these new office centers is a positive signal, but it also poses a challenge for absorption rates as supply increases. To maintain competitive advantage and optimize rental performance, landlords need to pay special attention to changes in tenant preferences, who increasingly prioritize flexible workspaces, modern designs, and especially "green" elements, reflecting a commitment to sustainability. Capturing and timely responding to these trends will be key to success in the increasingly competitive market over the next three years.
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