Vietnam Office Leasing Market Analysis Report Q2.2025 and Outlook for H2.2025 | Your Trusted Office & Industrial Leasing Solutions

Vietnam’s office leasing market in Q2 2025 highlights both resilience and transition. While occupiers increasingly demand green-certified, amenity-rich offices, investors and landlords must adapt to optimize portfolios and capture long-term rental growth. For businesses, this means greater choice but also competition for prime space. For investors, it is a time to focus on quality, sustainability, and tenant experience as the key drivers of performance in Vietnam’s evolving office sector.

Objective:
To provide a comprehensive analysis of the office leasing market in Vietnam (focusing on Hanoi and Ho Chi Minh City) in the first half of 2025, and assess the outlook for the second half of the year. The report focuses on supply - demand - rental price - vacancy rate, tenant behavior, ESG/flex office trends, and investment opportunities and risks.

Scope:

Vietnam (Hanoi, Ho Chi Minh City).
Time: Q1–Q2/2025 (actual) and H2/2025 (outlook).
Segment: Grade A, B, C; CBD vs. Non-CBD; New and existing projects.
Target: Investors, building owners, tenants, consultants.

Main analysis axes:

Supply (existing & pipeline).
Demand and leasing behavior (absorption, relocation, expansion).
Rent price (rent level, growth trend).
Vacancy & occupancy.
Notable trends: ESG, upgrading old buildings, flexible workspace.
Opportunities and risks for investment strategies (Core, Core+, Value-add).

Market overview

Hanoi

Supply: Q1/2025 reached ~2.33 million m² across 193 projects, up ~10% YoY, mainly Grade B supply. Grade A is still scarce in the CBD.
Occupancy rate: About 82–88% in Q1/2025. Grade A remained stable (~88%), while Grade B and C fluctuated, especially Grade C reached ~92%.
Rent: Slight increase, average increase 1–3% QoQ or YoY. Grade C recorded the best increase.
Outlook: ~265,000 m² new supply from 2025 to 2027, of which 92% is Grade A. Notable projects: Tien Bo Plaza, 29 Ly Thai To, The Marc 88, Oriental Square.

Ho Chi Minh City (HCMC)

Supply: Q1/2025 reached ~2.8 million m² from 394 projects. Grade C accounted for 43%, B 40%, A only 17%. Saigon Marina IFC (LEED-certified, ~71,500 m²) was the outstanding Grade A project at the beginning of the year. By the end of the year, ~105,000 m² new supply is expected to launch.
Occupancy rate: About 88–90%, slightly down from before, but Grade A in the area outside the CBD reached ~90%.
Rental rates: Up 2–4% YoY, reaching around VND833,000/m²/month (~USD35–55/m²/month). Grade A CBD ~USD55/m²/month, Grade B ~USD25.
Net absorption: Q1/2025 recorded a negative ~5,628 m² for Grade A/B CBD, but the highest absorption in a decade overall.
Trends: Technology, finance, pharmaceutical industries favor green and modern buildings; demand for flexible rental services increases.

Insights

Occupant demand & behavior

Relocation and Expansion: Nearly 70–80% of transactions come from office conversion, prioritizing quality and suitable location.

Leading sectors:

Hanoi: ICT, consulting services, finance, insurance. Grade C surprisingly has high occupancy rate (~92%) thanks to low prices.
HCMC: International FDI contributes >80% of leased area; mainly from ICT, FIRE, manufacturing, consulting services.
Leasing behavior: Enterprises prioritize upgrading (flight-to-quality), more flexible area (optimized seat density & hybrid), cautious lease terms.

Supply & segmentation

Grade A: Concentrated in CBD, green certified (LEED/WELL), equipped with technology, attractive to large tenants.
Grade B/C: Larger in quantity. Grade C has the highest growth in HCMC (43%) and high occupancy in Hanoi.

Rent & vacancy

Rent increases steadily: ~2–4% YoY in HCMC, ~1–3% in Hanoi.
Vacancy: Grade A: HCMC ~19%, Hanoi ~26%; Grade B ~18–23%. New supply creates short-term pressure but also opens up opportunities for price/incentive strategies.

Challenges & risks

Large supply in 2025–2027 may increase vacancy and create competitive price pressure.
Slower leasing decisions due to hybrid mobility & cost savings.
Purchase size is reduced as businesses are cautious.

Investment opportunities

ESG & technology: Green buildings can attract high-end tenants & retain good prices.
Repositioning assets: Upgrade old buildings, redesign, green certification to increase competitiveness.
Flex space/Serviced Office: Attract SMEs and startups.
Flexible rental policies: Fit-out, free rent, step-up rent are all tools to retain customers.

Structural themes

Moving to quality buildings: Tenants are moving to energy-efficient buildings, green certification, good amenities. This is a regional trend and is clearly present in Vietnam.
Hybrid & flexible: Lean space planning, flexible seating, coworking in the same building.
Asset upgrade: Old assets face contract renewal pressure as new Grade A supply emerges → capex needed for system upgrades, utilities, and rental incentives.

Outlook 2025–2027

City	Key trends 2025–2027
HCMC	Strong supply growth (~105,000 m² by end-2025), rental prices increase slightly (~5% forecast), competition increases, market tilts towards tenants.
Hanoi	Grade A supply growth (~265,000 m² by 2027), vacancy increases, but premium demand remains strong, especially in non-CBD areas.

Conclusion

The Office Leasing Market in Vietnam is in a transitional phase: large supply, green trends – high quality, shifting demand, and flexible adaptation opportunities for investors. This is the right time for the Value-add or Core+ segment, focusing on quality, ESG and flexible conversion.

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