SUPPLY: NO NEW COMPLETION, STOCK REMAINED STABLE
The HCMC office market recorded no new supply in Q3 2026, keeping total stock stable at approximately 1.75 million sqm NLA. The supply breakdown remained unchanged, with Grade A accounting for around 651,000 sqm and Grade B standing at approximately 1.10 million sqm NLA. With no new completions, limited vacant space additions allowed existing projects to improve occupancy.
DEMAND: STEADY IMPROVEMENT ACROSS BOTH GRADES
Overall occupancy reached 91.2%, up 0.4 ppts QoQ and 1.7 ppts YoY, marking the third consecutive quarter of growth. Grade B continued to maintain the highest occupancy at 92.0% (+0.5 ppts QoQ; +0.6 ppts YoY), reflecting balanced demand for space quality and cost-efficient solutions. Grade A stood at 89.8% (+0.3 ppts QoQ) but recorded a standout YoY improvement of 3.6 ppts. This performance was largely driven by flexible landlord pricing strategies, enabling occupiers to pursue flight-to-quality opportunities at more competitive costs. Overall, quarterly gains across both grades remained moderate. Vacant space was gradually absorbed, driven mainly by relocation and workplace upgrade demand, while corporate expansion plans remained cautious.
RENT: SLIGHT SOFTENING AMID IMPROVING OCCUPANCY
Average net rents reached VND 1.06 million/sqm/month in Q3 2026, down 1.0% QoQ and 3.7% YoY. Grade A rents recorded the sharpest decline to VND 1.38 million/sqm/month (-1.5% QoQ; -5.6% YoY), reflecting ongoing competition among landlords to attract and retain tenants, while Grade B rents remained relatively stable at VND 870 thousand /sqm/month (-0.3% QoQ; -1.3% YoY). Improving occupancy alongside declining rents suggests that leasing demand remains insufficient to support broad-based rental growth. Landlords continue to focus on maintaining occupancy and stable cash flow, while tenants are becoming more cost-conscious when choosing office space.
MARKET OUTLOOK: DECENTRALIZED SUPPLY EXPANSION TO INTENSIFY COMPETITION
Approximately 430,000 sqm NLA of new office supply is expected to enter the market between 2026 and 2030, equivalent to around 24% of existing stock. Most new supply will be located outside the CBD, with the East accounting for 50% and the South 22%, while the CBD represents only 28%. This is expected to provide tenants with more options in terms of location and rental budgets, while encouraging relocation toward emerging submarkets.
However, if expansion demand remains limited, the large supply pipeline may lead to longer lease-up periods, particularly in the East and South, while putting further pressure on rents. New projects will compete based on connectivity, building management, amenities and rental rates. For existing buildings, improving services and adjusting leasing terms will be key to retaining tenants amid increasingly selective demand
