Strong demand across segments as “flight‑to‑quality” continues to shape leasing activity

• In 2025, CBD Grade A offices saw robust expansion as tenants prioritized workspace upgrades, reinforcing the flight‑to‑quality trend and driving net absorption of around 35,000 sqm. Demand remained concentrated in the Logistics, Technology, and Manufacturing sectors.
• Non‑CBD Grade A maintained solid momentum, led by flexible workspace and logistics relocations, with about 13,000 sqm absorbed. Grade B demand stayed steady in the CBD, while the South outperformed other non‑CBD areas, contributing 25,655 sqm to annual absorption.

No new supply in Q4 2025

• In Q4, the market recorded no new office supply. Over the year, two new completions were delivered: Saigon Marina IFC, bringing total Grade A stock to 572,300 sqm, and Halo Building Signature, raising cumulative Grade B supply to 1,197,400 sqm.
• Vacancy rates improved across segments, with Grade A down to 19.4% (‑1.7 ppts q‑o‑q), reflecting solid leasing activity and sustained tenant demand, while Grade B vacancy strengthened to 11.0% (‑0.9 ppts q‑o‑q), underscoring a balanced supply landscape and continued market absorption throughout the year.

Rents remained broadly stable across segments

• Gross 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, while non‑CBD Grade A held at USD 36.2 per sqm per month.
• Grade B rents remained consistent at USD 33.4 and USD 20.6 per sqm per month in CBD and non‑CBD, as landlords maintained pricing discipline.

Outlook: New premium supply intensifies CBD competition

• In 2026, The Kross will be the only new supply in Grade A segment, delivering over 32,000 sqm in the CBD. The arrival of this project, together with substantial vacant space at Saigon Marina IFC, is expected to heighten competition in Grade A segment.
• Meanwhile, the Grade B market will see the entry of Hong Fu Plaza in the South. The launch of International Financial Center (IFC) in Dec 2025 is also expected to attract MNCs and high‑value tenants, reinforcing HCMC’s position as a regional financial hub, increasing demand for premium office space.