After the supply boom in 2025, the Grade A office market in Ho Chi Minh City entered a phase of adjustment with clear changes from actual transactions. Records in the city center and surrounding areas show that the number of customers going to see offices has improved compared to the end of last year, but the tenure sentiment is significantly more cautious.
Mr. Minh Hoang - an office broker in Ho Chi Minh City - said: "In the past 2-3 months, customers have asked to rent more but no longer finalize quickly as before. Customers have a very detailed comparison between buildings, from rental prices, service fees to amenities.
According to Mr. Hoang, new buildings, prime locations, and professional operation still maintain good occupancy rates. Conversely, old buildings or those located outside the main axis must compete more fiercely, even increase incentives such as rent exemption or support for interior completion costs to retain customers.
From the same perspective, Ms. Tran Ngoc Lien - an office rental consultant in Ho Chi Minh City - said that current demand has changed significantly. "Tenants not only find convenient workplaces but also care about overall experiences such as space, utilities, and operating technology" - Ms. Lien said.
In that context, according to JLL Vietnam, the Grade A office market in Q1/2026 recorded a stable state after a year of hot supply growth. The total leased area remained unchanged at 663.613 m2, with no new projects joining in the quarter. This creates the necessary "break time" to absorb the additional supply in 2025.
As a result, the average vacancy rate in the whole market slightly decreased to 18.8% in the first quarter of 2026, from 19.4% in the previous quarter. Although the decrease is not large, this is still a positive sign as rental demand gradually improves while there is no new supply pressure.
Mr. Will Tran - Director of Office, Industry & Logistics for JLL Vietnam - commented: "This breathing period is assessed by us as positive, helping completed buildings in the previous year have enough time to reach a reasonable occupancy level before new supply continues to enter the market. This also allows investors to adjust their rental and service strategies to better suit the actual needs of tenants.
However, if viewed in the long term, the current vacancy rate is still significantly higher than the 16% level of the same period in 2025, showing that competitive pressure has not completely decreased. The differentiation between buildings is increasingly clear: high-end asset groups, central locations continue to maintain an advantage, while old or less favorable buildings face many challenges.
Regarding rental prices, the central area maintained at 64.7 USD/m2/month, a slight increase of 1.1% compared to the same period. Meanwhile, the out-of-center area recorded an average of about 36 USD/m2/month, a slight decrease of 0.6%. The nearly double gap between the two areas shows that businesses are still willing to pay higher fees in exchange for location advantage, accessibility and brand value.
According to Mr. Will Tran, central buildings continue to attract groups of tenants in the fields of finance, banking and high-end consulting. Conversely, out-of-town areas are becoming the choice of technology companies and startups thanks to reasonable costs and more flexible areas.
Notably, with the current price level, Ho Chi Minh City has entered the top 5 markets with the most expensive office rents in the Asia-Pacific region, only behind Hong Kong (China), Singapore, Seoul and Tokyo.
Experts assess that the Grade A office market in Ho Chi Minh City is in a healthy adjustment phase after a strong supply surge in 2025. The gradual improvement in vacancy rates and stable demand shows that the market is gradually finding its balanced state, creating a foundation for a sustainable recovery phase in the near future.
