Downtown Ho Chi Minh City among Asia-Pacific’s five most expensive office markets

The market remains buoyant, supply is constrained, yet competitive pressures persist.

In early April, a quick scan of real estate forums and online office leasing platforms revealed a vibrant premium office segment in Ho Chi Minh City.

In contrast to the subdued mood of previous years, leasing listings for buildings along prime corridors such as Hai Ba Trung, Le Duan, and Dong Khoi are consistently drawing strong market interest.

New listings draw rapid tenant interest

According to Xuan Truong, a broker specializing in office leasing in the former District 1, any newly available space in centrally located Grade A buildings tends to receive inquiries almost immediately upon listing.

He added that financial institutions, banks, and multinational corporations are generally less sensitive to price, prioritizing location and building prestige.

This observation is consistent with the Q1 2026 Grade A office market report by JLL, a global commercial real estate and investment management firm.

The report notes that despite the absence of new supply, existing buildings continue to record steady absorption rates.

The most notable feature of the market at the start of the year is rental pricing.

Gross asking rents for Grade A office space in central Ho Chi Minh City currently stand at $64.7 per sqm per month, up 1.1 percent year on year.

At this level, the city ranks among the top five markets with the highest net effective rents in Asia-Pacific, behind Hong Kong, Singapore, Seoul, and Tokyo.

This pricing dynamic has created a pronounced gap between the central business district and peripheral areas.

While rents in the former District 1 remain elevated, gross asking rents in non-central areas average just $36 per sqm each month.

Will Tran, head of office leasing at JLL Vietnam, noted that this near-twofold disparity underscores tenants’ willingness to pay a premium for superior location, accessibility, and brand positioning.

Market awaits new supply pipeline

Despite rising rents, the market shows no signs of overheating.

According to JLL, the overall vacancy rate declined slightly to 18.8 percent in Q1 2026, down from 19.4 percent in Q4 2025, indicating that available space is gradually being absorbed, supported by positive net absorption and the absence of new supply.

However, compared with 16 percent in Q1 2025, vacancy remains notably higher, suggesting that competitive pressures persist.

A growing divergence among buildings is also evident.

Premium properties with prime locations, high construction quality, and professional management continue to maintain strong occupancy levels.

In contrast, older buildings or those in less favorable locations face increasing competitive pressure.

Looking ahead, the Grade A office segment retains strong growth potential as the economy recovers and corporate expansion demand rises.

In downtown areas, financial institutions and high-end consulting firms remain core tenants.

Meanwhile, non-central neighborhoods are emerging as attractive alternatives for technology firms and start-ups seeking larger floor plates at more competitive costs.

Market attention is now focused on several projects scheduled for completion in Q2 2026, which are expected to provide a fresh boost to premium office supply and help alleviate pent-up demand for prime space.

An industry expert noted that landlords are no longer competing solely on price; instead, tangible value -- modern workspace design, comprehensive amenities, and an enhanced overall user experience -- has become critical to tenant retention amid rising costs.