HCMC office leasing improves as Hanoi welcomes new Grade A supply

Two Grade A offices were completed in Hanoi in Q1.

Avison Young Vietnam says office leasing activity in Ho Chi Minh City improved slightly in Q1/2026, supported by demand from international companies and the absence of new supply.

According to the consultancy, occupancy rates in HCMC reached 92% for Grade A offices and 90% for Grade B space during the quarter. Several projects, including ThaiSquare The Merit and The Hallmark, achieved full occupancy.

With no additional office supply entering the market, leasing activity remained concentrated in existing projects, helping to ease competitive pressure on rental rates. Avison Young Vietnam said the city’s business environment is expected to continue supporting stable leasing demand.

In Hanoi, the office market became more diversified following the completion of two Grade A projects in Q1, The Marc 88 and IFC Hanoi, part of the B1CC3 Complex. Oriental Square is also expected to enter the market soon.

Rental rates in Hanoi remained stable at around USD35 per sqm per month for Grade A offices and USD24 per sqm per month for Grade B space, although Avison Young Vietnam noted that new supply could place additional pressure on occupancy levels.

The consultancy said the steady increase in Grade A office supply across both cities reflects a broader strategic focus on high-quality assets offering stronger operational standards, enhanced amenities and green certifications.

On the demand side, tenants are increasingly prioritising space optimisation and user experience, driving greater adoption of flexible workspace models, according to Avison Young Vietnam.