HCMC office rents at 5-year high driven by rising demand

Across all grades (affordable, mid-range and premium), the average rent rose by 1.6% to $36, according to property consultancy JLL Vietnam.

Data from market researcher Knight Frank confirms the rising trend, showing prime office rents grew by 3% last year to $61.

Occupancy rates in new office buildings were 88-90%, it said.

Another property consultancy, Savills, said the HCMC office market has seen a steady increase in rentals over the past decade.

HCMC office buildings. Photo by VnExpress/Quynh Tran

Last year, across all grades, they increased by 2-3% but demand remained strong as indicated by occupancy rates of above 89%.

Trang Le, CEO of JLL Vietnam, said recovery in demand from both domestic and international businesses has been a key driver, allowing premium office landlords to confidently hike prices.

Last year the vacancy rate dropped to just 6% at premium buildings and 12% across the market, she added.

Japanese companies have been active in securing office space, accounting for 19% of the more than 75 companies that signed new lease agreements in HCMC, JLL data shows.

Vietnamese businesses were in second place, with South Korean and American firms close behind.

The information technology and communications sector led the demand for office space (accounting for 30% of the total absorbed area), followed by the finance and banking, retail and pharmaceutical industries.

Will Tran, senior director of office leasing advisory at JLL Vietnam, said the rising rentals were also driven by the launch of new premium buildings with stringent standards and "green" certification.

Buildings developed with "green" standards incur higher construction costs, which in turn lead to higher rentals, he explained.

Le said the upward trend is unlikely to slow down in the short term, given the limited increase in future supply in the central area.

This year HCMC is expected to have around 71,000 square meters of office space for lease – a relatively modest amount that is likely to be fully absorbed in the short term.

Trang Bui, CEO of property services firm Cushman & Wakefield, said office rentals in HCMC are likely to rise by 5% this year, driven by active office expansion.

The two new urban areas, Thu Thiem and Phu My Hung, are set to become new office hubs.

From 2026 the market is expected to stabilize, with growth potentially slowing to 0.4-0.5% per year. Demand for office space will continue to come from key industries such as information technology, banking, manufacturing, insurance, and logistics, she added.