Vietnam HCMC Grade A Office: Vacancy Rates and 2026 PSF Outlook

Q4 2025 Vacancy Snapshot

Ho Chi Minh City's Grade A office vacancy rate climbed to 12.4% in Q4 2025, up from 9.8% a year earlier, as three new completions added 125,000 sqm of net leasable area. The increase was concentrated in District 1 (vacancy 14.2%) and Thu Thiem (16.8%), while Binh Thanh District remained tighter at 8.5%. Despite the rise, average gross rents held steady at US$48‑52 per sqm per month (≈S$65‑71 psf per year), reflecting landlord confidence in absorption. The vacancy uptick is largely attributed to the “flight to quality” trend: tenants leaving older Grade B buildings for newer, ESG‑compliant Grade A towers, creating a temporary oversupply in the premium segment.

2026 Supply Pipeline

Only two Grade A projects are scheduled for completion in 2026: “The Nexus” (Thu Thiem, 45,000 sqm) in Q2 and “Saigon Central Tower” (District 1, 38,000 sqm) in Q4. Combined, they add just 83,000 sqm—a 4.7% increase in total Grade A stock, the lowest annual growth since 2019. This limited new supply, coupled with strong pre‑commitments (The Nexus is already 60% pre‑leased to a consortium of tech and financial firms), suggests vacancy will peak in Q1‑Q2 2026 before tightening through 2027. No new Grade A groundbreakings are expected before 2028 due to financing constraints, setting the stage for a landlord‑friendly market from late‑2026 onward.

The Numbers

• Q4 2025 Grade A vacancy rate: 12.4% (up from 9.8% in Q4 2024)
• Average gross rent: US$50 per sqm/month (≈S$68 psf/year)
• Highest submarket rent: District 1 CBD (US$55, ≈S$75 psf/year)
• Lowest submarket rent: Thu Thiem (US$45, ≈S$61 psf/year)
• Total Grade A stock end‑2025: 1.76 million sqm
• 2026 new supply: 83,000 sqm (4.7% growth)
• Pre‑commitment rate for 2026 supply: 52%
• Major tenant sectors: Tech (32%), Finance (28%), Professional Services (22%)
• Forecast 2026 year‑end vacancy: 10.2%
• Forecast 2026 rental growth: 3‑5% (US$51‑52.5 per sqm/month)

Rental Outlook

Rents are projected to increase 3‑5% in 2026, driven by limited new supply and sustained demand from technology and financial services firms expanding their Vietnam headquarters. District 1 CBD will lead with 5‑7% growth, reaching US$57‑58 per sqm/month (≈S$78‑79 psf/year) by end‑2026. Thu Thiem, despite higher vacancy, will see rents stabilise as infrastructure improvements (the new metro line opening Q3 2026) improve connectivity. For investors, Grade A office yields remain attractive at 6.5‑7.0%, compared to 4.0‑4.5% in Singapore and Bangkok. The key risk is a potential economic slowdown affecting tenant expansion plans, but current pipeline of FDI into Vietnam (US$18 billion committed in 2025) suggests robust underlying demand.