Ho Chi Minh City, Vietnam’s economic powerhouse, continues to attract both domestic and international businesses, driving a growing demand for high-quality office space. As the city’s economy expands, its office market has become a key barometer of economic health—reflected in the rise of both premium and mid-tier office developments across the metropolis.
While the central business district (CBD) remains a focal point, southern HCMC and Thu Thiem are rapidly gaining momentum. Over the past five years, these areas have seen a surge in office investment, positioning themselves as the city’s next financial and commercial epicenter. With modern infrastructure, improved connectivity, and a growing ecosystem of businesses, the south is becoming a magnet for companies seeking both value and quality.
According to Cushman & Wakefield, as of Q2 2025, the southern office market boasts 256,881 square meters of leasable space, spread across three Grade A and nine Grade B buildings. This marks a significant shift from the early 2000s, when the area first began attracting major tenants like Manulife (2007), Unilever (2008), Nam Long (2010), and Vinamilk (2011)—all of whom relocated their headquarters to self-developed, branded buildings.
Since then, the market has welcomed a wave of large-scale developments, including Saigon Paragon, Phu My Hung Tower, UOA Tower, COBI I & II, and Mapletree Business Centre. Looking ahead, an additional 87,575 sqm of office space is expected to come online within the next 2–5 years, with projects like Millennial Tower (UOA Group) and Hongfu Plaza (HongFu Group) in the pipeline.
Office rents in District 7 remain highly competitive. Grade A space is priced at USD 26.7/sqm/month, holding steady year-over-year, while Grade B rents have edged up slightly to USD 17.3/sqm/month. These rates are roughly 50% lower than those in the CBD, offering a compelling value proposition for cost-conscious tenants.
Occupancy rates reflect this appeal. By the end of Q2 2025, Grade A offices in the south reached a 93.5% occupancy rate, up 4.75 percentage points from the same period last year. Grade B offices followed suit, climbing to 88%, an 8-point increase year-over-year.
The demand is being fueled largely by the technology sector, along with multinational capability centers, manufacturers, and banks. Many firms are opting to relocate or expand into non-central areas to tap into more affordable rents and a broader talent pool. This trend has helped transform South Saigon into a vibrant tech ecosystem, attracting both startups and global giants.
One standout development is CMC Creative Space in Tan Thuan Export Processing Zone. Located along the river and just 15–20 minutes from Phu My Hung and central Saigon, the complex offers a unique advantage: it houses the Tan Thuan Data Center, touted as Vietnam’s most advanced, developed by CMC Technology Group. For companies with data-intensive operations, this proximity offers cost control, reduced risk, and infrastructure reliability.
The area’s growth is further underpinned by major infrastructure projects, including the Nguyen Khoai Bridge and Thu Thiem Bridges 3 and 4, which are expected to significantly enhance connectivity with other parts of the city. As these projects come online, the southern corridor is poised to become an even more attractive destination for businesses seeking modern, efficient, and cost-effective office solutions.
District 7 Office Occupancy Rate and Supply Chart from 2021-Q2 2025
Source: Cushman & Wakefield
According to data from Cushman & Wakefield, a growing number of major corporations across Southeast Asia and the broader Asia-Pacific region are shifting away from traditional central business districts, opting instead for emerging or peripheral office markets. This trend reflects a strategic move to reduce costs and access new talent pools, while also responding to urban planning initiatives aimed at easing congestion in core city areas.
In Singapore, one of the region’s most mature office markets, the government has actively promoted the development of new commercial clusters outside the city center. These efforts aim to alleviate pressure on the downtown core and offer businesses more diverse location options. A prime example is the Singapore Science Park, a thriving hub for technology and innovation located just 10 minutes from the city center. The park hosts global giants such as Johnson & Johnson and Merck, alongside leading research institutions like DSO National Laboratories and the Institute of Microelectronics. It also serves as the regional headquarters for Shopee. Beyond the park, the northern region is home to innovation centers for P&G, Garena, Fujitsu, and Ubisoft, further cementing its status as a rising business district.
In China, the decentralization of commercial real estate began more than a decade ago, driven by soaring rental and labor costs in major urban centers. This shift has led many companies—including several Fortune 500 firms—to relocate or expand operations into second- and third-tier cities, where costs are lower and growth potential remains strong.
Back in Ho Chi Minh City, the southern office market—particularly District 7—is emerging as a compelling alternative for businesses seeking modern, well-equipped workspaces. With a growing supply of high-quality office buildings, competitive rental rates, and steadily rising occupancy levels, the area is increasingly viewed as a strategic location for expansion.
As economic conditions remain fluid, landlords in the southern corridor are focusing on maximizing occupancy and maintaining service quality—key factors in sustaining long-term appeal and resilience. For companies looking to balance cost, convenience, and infrastructure, District 7 offers a promising destination in Vietnam’s evolving office landscape.
(This article is written with data updated prior to the Vietnam’s province merger on July 1st, 2025)
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