Non-CBD area drives positive net absorption in H1 2026, offsetting challenges in the CBD market

• Quarterly net absorption in Q2 2026 reached 2,600 sqm, bringing the first half to 3,200 sqm, mainly driven by non-CBD area.
• CBD markets remained challenged in Q2 2026, facing cyclical tenant exits upon lease expiries. Overall market net absorption remained positive, with the primary source of demand coming from new buildings in the non-CBD area.

Non-CBD records one new completion of 60,000 sqm

• Grade A office supply in Hanoi reached 652,000 sqm NLA by end-Q2 2026 with the opening of IFC Hanoi, adding 60,000 sqm NLA. This LEED Gold-targeted mixed-use development is located in the non-CBD area (West Westlake cluster), offering premium amenities.
• Following the opening of new supply, the office vacancy rate increased temporarily to 26.2% in Q2 2026 (up 7.0 ppts from 19.2% in Q1), as the market absorbs the new supply.

Non-CBD rents rise on new supply, while CBD rents remain stable

• Most existing Hanoi office buildings held net effective rents steady in Q2 2026 to remain competitive and retain tenants ahead of new supply entering the market.
•  Grade A net rent in the CBD remained stable at USD 32.7 per sqm per month, while non-CBD rents increased 2.4% q-o-q to USD 24.1 per sqm per month, driven by new supply entering at above-average rental rates.

Outlook: West Westlake supply surge to force strategic leasing adjustments

• Substantial five-year supply pipeline in West Westlake cluster is expected to fundamentally reshape Hanoi’s office market dynamics, as the majority of future non-CBD supply is concentrated in this area.
• Tenants will gain expanded options in modern, amenity-rich buildings, while older stock across the city faces heightened competitive pressure, compelling landlords to upgrade their assets and carefully refine leasing strategies to attract and retain tenants.