Vietnam Office Market Update: A Promising Outlook for Tenants in 2025

Hanoi: Relocations Surge as ICT Sector Drives Demand

In Q1 2025, Hanoi's office leasing market showed steady movement, especially in Grade C buildings, which reached a high occupancy rate of 92%, reflecting a slight yet meaningful increase both quarter-over-quarter and year-over-year. While Grade A and B buildings experienced declines, with occupancy rates falling to 79%, the city remains active with relocations—71% of all leased space came from tenants moving offices.

Shows the performance of Grade A, B, and C office spaces—highlighting Grade C’s strong occupancy.

What’s notable is where they’re going. 51% of relocated tenants moved to secondary areas, while 49% chose the western districts, highlighting a shift in preference toward more decentralized, accessible locations. The ICT industry led demand, taking up 50% of total leasing activity, followed by healthcare and medicine at 21%.

Visual breakdown of tenant movements between secondary areas and western districts.

Looking ahead, 265,000 square meters of new supply is expected by 2027, with 92% of it coming from Grade A developments. Landmark projects such as Tien Bo Plaza, 29 Ly Thai To, The Marc 88, and Oriental Square are set to redefine Hanoi’s office market. For now, tenants can expect a favorable market with increased options and potential rental incentives as landlords compete to secure long-term commitments.

Ho Chi Minh City: Highest Absorption in a Decade

Meanwhile, in Ho Chi Minh City, Q1 2025 recorded the highest absorption rate in the last 10 years, signaling strong tenant demand. Rental prices in the Central Business District (CBD) grew by 3.7%, even as vacancy rates remained in double digits. This points to a growing appetite for premium office spaces as the economy regains its post-pandemic rhythm.

Displays rental growth and average vacancy rate, emphasizing strong absorption despite vacancy.

In Q2, the city is expected to welcome 165,000 square meters of new space from two major developments in both central and non-central areas. This will further diversify the market and give tenants more room to explore better deals and upgraded spaces.

Tenant Trends & Outlook

Across both cities, the market is shifting in favor of tenants. With new supply entering the pipeline, especially in Grade A and green-certified buildings, companies now have more flexibility in choosing offices that align with their brand, culture, and employee well-being goals.

• Information Technology & Manufacturing: Often seeking large footprints of over 1,000m².

• Consulting, Distribution & Education: Showing increased interest in modern, collaborative workspaces.

• Global Enterprises: Encouraging returns to office, especially in high-quality developments.

As sustainability becomes a core focus, buildings with green certifications are increasingly sought after—highlighting a broader shift toward healthier, more future-ready workplaces.