Significant 2026 pipeline set to transform Hanoi office dynamics

The supply increase in both Grade A and Grade B segments may curb market price growth.

Hanoi’s office market closed 2025 on a strong footing, with robust leasing activity recorded across both Grade A and Grade B segments, according to a report from JLL. The consultancy highlighted sustained occupier appetite for high-quality, modern workspaces, even as new supply began reshaping market dynamics.

JLL reported that strong leasing activity in the Grade A segment was led by top-tier developments such as Grand Terra, Capital Place, Lancaster Luminaire and Taisei Square Hanoi. These buildings attracted occupiers prioritizing modern specifications, sustainability credentials and premium locations, underscoring the flight-to-quality trend.

On a full-year basis, net absorption in the Grade A segment reached 22,700 sqm in the CBD and 17,000 sqm in non-CBD areas, reflecting broad-based demand across market segments. According to JLL, this performance demonstrates that occupiers remain confident in Hanoi’s long-term business prospects, with both central and emerging decentralised precincts benefiting from leasing momentum.

The Grade B market also recorded solid performance. JLL noted that full-year net absorption in this segment reached approximately 54,700 sqm, driven by new project completions and rising occupancy levels in existing buildings. The healthy take-up indicates that cost-conscious occupiers continue to find value in well-located Grade B assets, particularly as fresh supply enters the market.

New completions played a pivotal role in shaping 2025 outcomes. In the final quarter, the Grade A segment welcomed Oriental Square, adding 14,000 sqm of net leasable area and laying the foundation for a modern office cluster within the Starlake township. With this addition, total Grade A supply rose to 572,200 sqm, JLL said. Meanwhile, the Grade B segment saw the debut of ROX Tower Goldmark City in the western precinct, contributing around 60,000 sqm and pushing total Grade B stock to 1,508,100 sqm.

Reflecting strong leasing demand, the Grade A vacancy rate declined to 16.5 percent, down 1.7 percentage points quarter-on-quarter, according to JLL. In contrast, Grade B vacancy rose to 16.2 percent, up 2.9 percentage points over the same period, primarily due to the influx of newly completed space.

Rental performance remained relatively stable despite supply additions. JLL reported that Grade A gross asking rents averaged USD 37.0 per sqm per month in Q4, edging down 0.4 percent quarter-on-quarter. The moderation was largely attributed to new non-CBD projects entering the market at comparatively lower rental benchmarks. Grade B rents held steady at USD 20.5 per sqm per month, as new launches were broadly aligned with prevailing rates while some existing buildings implemented minor adjustments. Overall, the market-wide average asking rent slipped marginally by 0.2 percent quarter-on-quarter to USD 25.0 per sqm per month.

Looking ahead, JLL expects 2026 to mark a transformative phase for Hanoi’s office market, driven by a significant pipeline of new supply. Upcoming Grade A projects include The Office, which will add 20,000 sqm in the CBD, and IFC Westlake, set to deliver 60,000 sqm in the Starlake township non-CBD area. JLL noted that continued Grade A development in Starlake is poised to create a synchronized and competitive new office cluster.

In the Grade B segment, The Marc 88 is scheduled for launch in the non-CBD area, further expanding available stock. JLL cautioned that the upcoming wave of supply may temper rental growth, while also encouraging landlords and investors to differentiate through green certifications and sustainability initiatives to meet evolving occupier expectations.

With strong absorption across segments and a substantial development pipeline on the horizon, JLL maintains that Hanoi’s office market is entering a new growth cycle defined by quality, sustainability and strategic decentralisation.