Research
Ho Chi Minh City
Office | Q1 2025
Ho Chi Minh City
Fundamentals
YTD net absorption 10,000 s.m.
• Market records healthy demand in the first quarter. YTD completions 0 s.m.
Vacancy rate 16.0%
• No new supply is recorded in the quarter.
Net effective rent USD 49.6 p.s.m. p.m.
• Net effective rent remains resilient. Rent growth Y-o-Y 2.5%
Stage in rental cycle Growth Slowing
Note: Financial indicators are for the CBD, while physical indicators are for the Grade A
office market. Data is on an NLA basis.
Despite ongoing economic uncertainties, leasing activities in high- stable, reaching USD 9,155 per sqm, per quarter. Market yield Historical supply and demand trends
quality office developments remained healthy in Q1 2025, with net remained stable q-o-q at 6.5% but increased by 20 bps y-o-y since the
absorption of around 10,000 sqm. The market was primarily driven by ongoing impact of broader economic conditions continued to s.m. (thousands)
demand for recently completed and newly constructed projects, influence investor confidence. 120 20%
while older, mid-aged buildings experienced a decline in occupancy
rates. Outlook 100
In 2025, the market will welcome Marina Central Tower, one of the 15%
No new Grade A office buildings were completed in Q1 2025. HCMC's city's largest office complexes with 71,500 sqm NLA. As large new 80
vacancy rate in the Grade A office market averaged 16.0% and fell 170 space become available, existing properties may need to adjust their
bps q-o-q and 320 bps y-o-y, driven by take-ups in the CBD. Marina rents and/or upgrade their facilities to remain competitive. Demand 60 10%
Central Tower is set to be the only Grade A office project completion for international-standard, sustainable Grade A office space will
40
in Q2 2025. continue as a major trend in 2025. 5%
20
Office rents remained stable at USD 49.6 and 26.0 for CBD and non-
CBD per sqm per month, respectively, in Q1 2025, as landlords largely 0 0%
maintained their rates to stay competitive and attract tenants amid 2020 2021 2022 2023 2024 YTD 2025
market uncertainty. Capital values in the CBD remained relatively
Net absorption New supply Vacancy rate
Trang Le | [email protected]
© Jones Lang Lasalle IP, Inc. 2025
Research
Ho Chi Minh City
Office | Q1 2025
COPYRIGHT © JONES LANG LASALLE IP, INC. 2025
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© Jones Lang Lasalle IP, Inc. 2025
