- Occupancy rates recorded positive gains amid still-limited new supply.
- Growth momentum came from manufacturing, healthcare, FMCG, industrial and FDI-backed companies.
- The "flight-to-quality" trend continues to drive the market, with rising demand for experience, operational quality and cost efficiency.
HCMC, September 2026 – The Ho Chi Minh City office market is moving closer to a balance between supply and demand. In Q2 2026, no new supply entered either the core area (former HCMC boundaries) or the expanded markets (former Binh Duong and Ba Ria - Vung Tau), while occupancy rates continued to improve. Demand was driven primarily by manufacturing, healthcare, fast-moving consumer goods (FMCG), industrial businesses and foreign direct investment (FDI) enterprises.
While leasing demand trended positively, tenants are also becoming more discerning about asset quality and location. Quality office space is no longer defined solely by location or building specifications, but increasingly by the day-to-day experience it offers employees.
GROWTH MOMENTUM DRIVEN BY MANUFACTURING AND FDI ENTERPRISES
No new office projects were completed in the HCMC area during the quarter. According to Cushman & Wakefield's Q2 2026 MarketBeat report, the HCMC core area held steady at approximately 1.73 million sq m NLA, while Binh Duong and Ba Ria - Vung Tau (BR-VT) remained at roughly 37,121 sq m and 17,465 sq m, respectively, as of Q2 2026.
Against this backdrop, occupancy rates rose across all areas. In the HCMC core, Grade A occupancy reached 89.8%, up 1.4 percentage points quarter-on-quarter, while Grade B reached 91.3%, up 0.5 percentage points. During the quarter, the market recorded approximately 14,458 sq m of net absorption, driven mainly by expansion and office relocation demand. Occupancy also reached 82.7% in Binh Duong and 87.9% in BR-VT, each up 0.5 percentage points quarter-on-quarter.
Ms. Chuong Quoc Doan, Associate Director, Industrial & Office Leasing at Cushman & Wakefield Vietnam, said: “The absence of new projects this quarter has kept near-term supply constrained, allowing the market to gradually absorb available spaces at existing buildings. We are seeing positive leasing demand from manufacturing, healthcare and FMCG companies in the HCMC core area. Meanwhile, Binh Duong and Ba Ria - Vung Tau, benefiting from expanding industrial activity, are attracting strong interest from manufacturing, industrial and FDI enterprises”.
Rental trends reflect a market that is recovering but remains competitive. In the core area, average rents edged down slightly to USD 53.2 per sq m per month for Grade A and USD 33.3 per sq m per month for Grade B, as landlords continued to offer incentives to attract and retain tenants. Meanwhile, rents in Binh Duong held stable at USD 20.2 per sq m per month, while BR-VT rents rose slightly to USD 10.4 per sq m per month, up 0.8% quarter-on-quarter.
This suggests that even as occupancy improves, rents have yet to face corresponding upward pressure, indicating tenants still retain a degree of negotiating leverage. At the same time, the simultaneous improvement in occupancy across multiple segments and locations signals that the supply-demand balance is gradually shifting in a more positive direction.
MARKET CONTINUES TO EVOLVE AROUND THE "FLIGHT-TO-QUALITY" TREND
Going forward, the "flight-to-quality" (FTQ) trend is expected to continue shaping office leasing demand in HCMC, though the definition of "quality" itself is expanding. Where FTQ once mainly described tenants moving into Grade A buildings in prime locations with high construction standards, current demand increasingly favors spaces that enhance the workplace experience and better serve the needs of end users.
Ms. Chuong Quoc Doan noted: “Beyond location, construction quality and operational standards, tenants are placing growing importance on space design, shared amenity areas, support for hybrid working models, building technology, transit connectivity and hospitality-style services. These factors are increasingly influencing leasing decisions, particularly as companies look to bring employees back to the office and improve space utilization efficiency”.
This also means that not all Grade A buildings are equally competitive. Assets with strong operational quality, efficient design and a differentiated user experience will hold a clearer advantage in attracting and retaining tenants. At the same time, well-located Grade B projects offering good quality at reasonable rents can still benefit as companies seek a balance between experience and cost.
In the HCMC core area, limited new supply will continue to support occupancy gains at higher-quality assets. Meanwhile, the trend of tenants expanding their search beyond the city center will create further opportunities for projects that combine space quality, connectivity and cost efficiency. Technology, manufacturing, healthcare and professional services are expected to continue leading leasing activity.
In Binh Duong and BR-VT, office demand will continue to be supported by FDI inflows and manufacturing and logistics activity. With future supply still limited, existing assets in favorable locations, with strong operational quality and the ability to meet tenants' increasingly diverse needs, are expected to retain their advantage over the medium to long term.
Click here for more insights from Cushman & Wakefield’s HCMC MarketBeat Q2 2026.
