Market resilience persists, supported by steady leasing activity

• The market continued to demonstrate resilience in early 2026, with existing buildings maintaining steady leasing activity supported by tenant relocations and headquarters consolidations.
• This measured absorption pace provides a stabilization period, allowing recent completions to gradually achieve target occupancy levels while enabling landlords to refine their leasing strategies ahead of additional supply entering the market. As a result, HCMC’s office market recorded net absorption of approximately 12,600 sqm in Q1 2026.

Vacancy dips slightly as net absorption remains modest amid supply digestion

• No new projects were completed in Q1 2026. The office market’s total leasable area remained stable at 663,600 sqm and 1,197,400 sqm for Grade A and B, respectively. The overall vacancy rate slightly decreased to 13.3% in Q1 2026, down from 14.0% in Q4 2025.
• This improvement was driven by positive net absorption at projects completed during previous quarters.

Rents remained broadly stable across segments

• Gross asking rents across both segments remained broadly stable. CBD Grade A averaged USD 64.7 per sqm per month, stable q‑o‑q yet up 1.1% y‑o‑y, supported by Saigon Marina IFC’s above‑average launch pricing in Q3 2025, while non‑CBD Grade A adjusted slightly at USD 36.0 per sqm per month.
• Grade B rents remained consistent at USD 33.6 per sqm per month, as landlords maintained pricing discipline.

Outlook: Market poised for continued stabilization in 2026

• The only project expected to complete in 2026 is The Kross, delivering more than 32,000 sqm of leasable office space to the CBD in Q2. Tenant preferences are expected to continue favouring high-quality, well-located office space, particularly newer Grade A and B buildings in the CBD.
• The recent launch of International Financial Center (IFC) in late 2025 is anticipated to gradually attract MNCs over the coming quarters, supporting demand for premium office space in the CBD.