Outlook 2023 Vietnam

HO CHI MINH CITY DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

50,000

18.0%

 Tenant demand in 2022, albeit limited, has been driven by industries such as E commerce/Fintech, Technology, Retail, Logistics, and Banking. High-quality supply remains desirable and in high demand.  Citywide net absorption of Grade A is expected to accelerate, driven by new supply in non-CBD areas.  With a consistent stream of new supply, vacancy is expected to remain high at around 10-15%. However, net absorption is expected to trend higher in 2025 and 2026 with healthy take-up of new projects.

45,000

16.0%

40,000

14.0%

35,000

12.0%

30,000

10.0%

25,000

8.0%

20,000

6.0%

15,000

4.0%

10,000

2.0%

5,000

-

0.0%

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield