Market records healthy demand in the first quarter

• Despite ongoing economic uncertainties, leasing activities in high-quality office developments remained healthy in Q1 2025, with net absorption of around 10,000 sqm.
• The market was primarily driven by demand for recently completed and newly constructed projects, while older, mid-aged buildings experienced a decline in occupancy rates.

No new supply is recorded in the quarter

• No new Grade A office buildings were completed in Q1 2025. HCMC’s vacancy rate in the Grade A office market averaged 16.0% and fell 170 bps q-o-q and 320 bps y-o-y, driven by take-ups in the CBD.
• Marina Central Tower is set to be the only Grade A office project completion in Q2 2025.

Net effective rent remains resilient

• 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 maintained their rates to stay competitive and attract tenants amid market uncertainty.
• Capital values in the CBD remained relatively stable, reaching USD 9,155 per sqm, per quarter. Market yield remained stable q-o-q at 6.5% but increased by 20 bps y-o-y since the ongoing impact of broader economic conditions continued to influence investor confidence.

Outlook: Demand for sustainable Grade A office space to persist

• In 2025, the market will welcome Marina Central Tower, one of the city’s largest office complexes with 71,500 sqm NLA. As large new space become available, existing properties may need to adjust their rents and/or upgrade their facilities to remain competitive.
• Demand for international-standard, sustainable Grade A office space will continue as a major trend in 2025.