Market Overview: Entering a Rebalancing Phase
In 2026, the Ho Chi Minh City office market is no longer experiencing the rapid growth seen in previous years. Instead, the market is entering a rebalancing phase — characterized by rising supply, vacancy rates potentially exceeding 24%, and increasing competition among landlords based on service quality rather than price escalation alone.
What does this mean for tenants?
This is a tenant-favorable market.
Rental growth is projected to slow to approximately 0.4–0.5% per year, significantly lower than in earlier cycles. New office supply is expected to reach around 85,000 sqm per year from 2026 onward, primarily in Grade A and Grade B segments, with a strong concentration in non-CBD areas such as District 2 (Thu Duc City).
Office Rental Benchmarks by Area
(Reference ranges – USD/sqm/month)
| Segment | District 1 | District 3 | District 2 (Thu Duc City) |
|---|---|---|---|
| Grade A | $35 – $66+ | $26 – $40+ | $28 – $48+ |
| Grade B | $20 – $45 | $16 – $35 | $20 – $35 |
| Grade C | $15 – $25+ | $11 – $25 | $10 – $35 |
| Economy | $8 – $20 | $8 – $16 | $8 – $16 |
Important note: These figures represent market benchmarks. Actual rents vary by building quality, floor level, leased area, and specific lease terms.
Detailed Comparison of Key Office Areas
District 1 – Traditional Financial CBD
District 1 remains the most prestigious business address in Ho Chi Minh City, hosting multinational corporations, banks, and international financial institutions. Choosing District 1 places a company at the heart of the city’s commercial and financial ecosystem.
- Best suited for: Multinational corporations, financial institutions, companies requiring strong brand positioning
- Key consideration: Highest operating costs in the market; limited new supply
District 3 – Flexible CBD-Adjacent Option
District 3 offers a strong balance between location and cost efficiency. With fast access to District 1 and rental levels typically 10–30% lower, it provides attractive Grade B and C options for cost-conscious yet centrally located businesses.
- Best suited for: Mid-sized companies, consulting firms, professional services
- Key consideration: Limited international-grade A+ stock; some areas with aging infrastructure
District 2 (Thu Duc City) – The Emerging New CBD
District 2 is the most dynamic growth area in 2025–2026. With rents 20–40% lower than District 1, combined with a wave of newly developed Grade A and B office buildings, the area is becoming a strategic choice for technology firms, fintech companies, and fast-scaling startups.
The Thu Thiem area stands out thanks to master planning, strong CBD connectivity via Thu Thiem bridges and Mai Chi Tho Avenue, and a growing number of green-certified buildings (LEED, EDGE).
- Best suited for: Technology firms, fintech, startups, newly established foreign companies
- Key consideration: CBD perception is still developing; public transport infrastructure is still being completed
Four Key Trends Shaping the 2026 Office Market
- Decentralization from the CBD
Companies are increasingly relocating from District 1 to District 2 and surrounding areas to optimize costs while maintaining strong connectivity. - Green offices are no longer optional
LEED, EDGE, and WELL standards are becoming baseline requirements, especially for international tenants. Buildings that fail to meet sustainability standards will face declining competitiveness. - Flexibility takes priority
Coworking, serviced offices, and flexible workspace models continue to grow as companies avoid long-term commitments in an uncertain market. - Landlords compete on service, not just rent
With rising vacancy, landlords are focusing on amenities, incentive packages, and faster leasing support rather than relying on rental growth alone.
Conclusion: Choosing the Right Area from the Start
The 2026 market offers more opportunities for tenants than ever — but selecting the wrong location can still result in higher long-term costs and operational inefficiencies.
- For premium branding and central positioning: District 1 remains unmatched
- For balanced cost and proximity to CBD: District 3 is a practical option
- For budget optimization and modern workspace: District 2 (Thu Duc City) is the strategic choice for future growth
SEE THE SPACE provides 100% free office leasing advisory services in Ho Chi Minh City, including updated quotations, multi-building comparisons, and full support throughout lease negotiations.
Right Space. Right Budget. — Ensuring every office decision is a sound business decision.
📞 Hotline: 0768 999 647
📧 Email: leasing@seethespace.vn
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