In Q4 2024, the market did not record any new office supply. However, for the whole year 2024, Ho Chi Minh City had 117,500 sqm of new supply from five Grade A buildings, three of which are in the central area. The total supply of Grade A and B offices in Ho Chi Minh City reached 1,634,726 sqm. Demand for office space mainly came from the information technology, banking, manufacturing, healthcare, and e-commerce sectors. Businesses preferred the central business district (CBD), the northern and eastern areas of Ho Chi Minh City. The occupancy rate exceeded 87%, with average rents for Grade A and B offices at $54.55/sqm/month and $34.24/sqm/month, respectively, stable compared to the previous quarter and the same period last year.
In 2025, the Ho Chi Minh City office market is expected to welcome 165,000 sqm of new supply from two projects in both central and non-central areas. From 2024 to 2029, average rents in Ho Chi Minh City are forecast to remain stable, with changes below 1% per year, except for 2025, which is expected to see a sharp increase of 5%, but the upward trend will stabilize with about 0.4%-0.5% from 2026 when new supply outside the central area is completed. From 2026 onwards, the market is expected to add 85,000 sqm of new supply each year. Thu Thiem and Phu My Hung continue to be oriented as new office centers. Due to abundant new supply, the vacancy rate is expected to remain high, possibly exceeding 24%.
