Market shows continued positive net absorption in Q2 2026 amid no new supply

• Net absorption in HCMC’s Grade A office market reached 8,300 sqm in Q2 2026, bringing the first-half total to 11,700 sqm.
• Leasing transactions in 1H 2026 mainly focused on Saigon Marina IFC, which was completed in 2025. Overall, demand was driven by relocations, primarily centered on the financial services, real estate, technology, and professional services sectors.

Marginal decline in overall vacancy rate driven by CBD decrease

• With no new supply completed in Q2 2026, Grade A office supply remained stable at 663,600 sqm.
• Amid limited new supply, continued improvement in occupancy was observed, particularly in the CBD. As a result, the overall CBD office vacancy rate dropped to 17.6% as of end-June 2026, recording a quarter-on-quarter decrease of 1.2 ppts.

Rents hold steady with sustained CBD premium highlighting continued location preference

• Net effective rent remained stable at USD 50.3 per sqm per month in the CBD and USD 26.0 per sqm per month in non-CBD areas.
• The rent differential between CBD and non-CBD remains nearly double, indicating tenants continue to pay a premium for location, accessibility, and brand prestige.

Outlook: Tenant preference for new premium office space will intensify competition for existing buildings

• In the short term, The Kross is the only project expected to complete in 2026, delivering more than 32,000 sqm of leasable office space to the CBD in H2 2026, before the market welcomes 233,000 sqm during 2027-2030.
• Continued tenant preference for new premium office space, along with significant supply entering over the next 3-5 years, will intensify competition and challenge landlords to adjust rental and leasing policies to retain and attract tenants.