HCMC Office Market Hits Five-Year High

According to JLL Vietnam, the average office rent across all grades in Ho Chi Minh City (HCMC) has increased by 1.6% to $36, marking a significant rise driven by robust demand. Knight Frank's data further highlights a 3% increase in prime office rents, reaching $61 last year.

Occupancy Rates and Market Trends

New office buildings are enjoying high occupancy rates of 88-90%, with Savills noting a steady increase in rentals over the past decade. Last year, rents across all grades rose by 2-3%, yet demand remained strong, maintaining occupancy rates above 89%.

Key Drivers of Growth

Trang Le, CEO of JLL Vietnam, attributes the recovery in demand from both domestic and international businesses as a primary factor. Premium office landlords have confidently increased prices, with vacancy rates dropping to 6% in premium buildings and 12% market-wide.

Industry and International Interest

Japanese companies lead in securing office space, representing 19% of new lease agreements in HCMC. Vietnamese, South Korean, and American firms follow closely. The IT and communications sector dominates demand, accounting for 30% of leased space, trailed by finance, banking, retail, and pharmaceuticals.

Future Outlook

With limited new supply in central areas and the introduction of premium, green-certified buildings, rents are expected to continue rising. Trang Bui of Cushman & Wakefield predicts a 5% increase this year, with Thu Thiem and Phu My Hung emerging as new office hubs. Market stabilization is anticipated from 2026, with annual growth slowing to 0.4-0.5%.