New international companies enter the market, expanding operations in high-quality offices

• Demand grew, with the CBD’s Q4 2024 net absorption at 9,400 sqm, and around 26,100 sqm for the year. Tenants prioritised new, green-certified buildings. The Non-CBD market saw no Q4 net absorption, but annual absorption was 8,900 sqm due to the launch of E.Town 6 in Q2.
• New, green buildings, like The Hallmark and The Nexus in the CBD, continue to attract tenants. These spaces are sought after by top Fortune Global companies like Google, SAP, FUJIFILM and IFC, entering or expanding in the market.

No new supply is recorded

• The Ho Chi Minh City Grade A office market saw no new supply in the quarter. Throughout 2024, it added 36,800 sqm, for a total of around 500,800 sqm and 91,300 sqm in CBD and Non-CBD, respectively. Notable is E.Town 6, the first Grade A project in the Northern Non-CBD area.
• Continuous leasing activity lowered the CBD vacancy to 14.3% in Q4 2024, down 2.9% q-o-q and 0.2% y-o-y. New buildings exceed 70% occupancy. Non-CBD vacancy rose to 36.2%, up 26.2% y-o-y, due to a new office opening.

Net effective rent remains resilient

• Rents in the CBD were USD 49.6 per sqm, per month, stable q-o-q and up 4.4% y-o-y. Despite macro challenges and relatively high rents, stable rent and optimistic occupancy in new buildings highlighted a stable, sustainable market segment.
• Similarly, the Non-CBD saw stable quarterly net effective rents, but down 4.2% y-o-y to USD 26.0 per sqm, per month. At just half the CBD rent, the Non-CBD has significant growth potential if developed into new office clusters, as observed in other markets.

Outlook: New supply will continue to bolster and elevate the quality of office rentals in the market

• In 2025, the market will welcome Marina Central Tower, one of the city’s largest office complexes with 71,500 sqm NLA. This significant addition is poised to reshape the market landscape, underscoring the imperative for existing buildings to upgrade to stay competitive.
• Demand for international-standard, sustainable Grade A office space is expected to continue as a major trend in 2025. Net effective rents for existing offices will become more competitive when notable new space enters the market.