Ho Chi Minh City to see over 32,000sqm of new Grade A office supply this year

The new CBD supply is expected to intensify competition in 2026.

Ho Chi Minh City’s office market closed 2025 with solid demand fundamentals, as occupiers continued to upgrade to higher-quality spaces and reinforce the “flight-to-quality” trend, according to a new report by JLL. The consultancy highlighted strong absorption across Grade A and Grade B segments, alongside stable rental performance and improving vacancy rates.

In 2025, CBD Grade A offices recorded net absorption of approximately 35,000 sqm, driven by tenants prioritizing workspace upgrades and modern building specifications. JLL noted that demand was largely concentrated in the logistics, technology and manufacturing sectors, reflecting continued expansion and consolidation among both multinational and domestic occupiers.

Non-CBD Grade A assets also maintained solid leasing momentum, absorbing around 13,000 sqm over the year. According to JLL, flexible workspace operators and logistics firms relocating to more cost-effective decentralised locations were key contributors to this performance.

In the Grade B segment, demand in the CBD remained steady, while the South precinct outperformed other non-CBD areas, contributing 25,655 sqm to annual absorption. JLL said this underscores occupiers’ continued interest in well-connected and competitively priced submarkets.

Supply additions remained measured during the year. While no new projects were delivered in the fourth quarter, 2025 saw two notable completions. Saigon Marina IFC was delivered in the Grade A segment, bringing total Grade A stock to 572,300 sqm. In the Grade B segment, Halo Building Signature raised cumulative supply to 1,197,400 sqm, according to JLL.

Leasing activity translated into improving occupancy levels across segments. JLL reported that Grade A vacancy declined to 19.4 percent, down 1.7 percentage points quarter-on-quarter, reflecting sustained tenant demand. Grade B vacancy also improved to 11.0 percent, down 0.9 percentage points, highlighting a balanced supply landscape and continued market absorption throughout the year.

Rental levels remained broadly stable. CBD Grade A gross rents averaged USD 64.7 per sqm per month, stable quarter-on-quarter and up 1.1 percent year-on-year, supported in part by the above-average launch pricing at Saigon Marina IFC, JLL said. Non-CBD Grade A rents held firm at USD 36.2 per sqm per month. In the Grade B segment, rents remained consistent at USD 33.4 per sqm per month in the CBD and USD 20.6 per sqm per month in non-CBD locations, as landlords maintained pricing discipline despite competitive pressures.

Looking ahead, JLL expects new premium supply to intensify competition in the CBD Grade A segment. In 2026, The Kross is set to be the only new Grade A completion, delivering more than 32,000 sqm in the CBD. Together with the substantial vacant space currently available at Saigon Marina IFC, the project is anticipated to heighten competition among top-tier landlords.

In the Grade B market, Hong Fu Plaza is scheduled to enter the South precinct, further expanding options for occupiers. Additionally, the launch of the International Financial Center in December 2025 is expected to attract multinational corporations and high-value tenants, reinforcing Ho Chi Minh City’s ambition to position itself as a regional financial hub and increasing demand for premium office space.

With sustained tenant upgrades, steady rents and a competitive new supply pipeline on the horizon, JLL maintains that Ho Chi Minh City’s office market remains resilient, supported by diversified demand and the city’s growing regional prominence.