Asia Pacific Office Outlook 2024

HO CHI MINH CITY

DEMAND & VACANCY

 The Manufacturing, Banking, Real Estate Development, and Technology industries are experiencing the most leasing activity. Grade A new supply in the CBD and the East witnessed the most expansion and relocation activity in 2023, proving that supply leads demand in Vietnam.  Citywide net absorption of Grade A office space is expected to gradually increase in the upcoming year, driven by new supply with higher quality.  With a consistent stream of new supply, vacancy is expected to remain high, even exceeding 20%. However, the vacancy rate is expected to trend downward from 2025 and 2026 when

N E T A B S O R P T I O N ( S QM ) A N D VAC A N C Y R AT E ( % )

FORECAST

25.0%

45,000

40,000

20.0%

35,000

30,000

15.0%

25,000

20,000

10.0%

15,000

10,000

5.0%

5,000

0.0%

-

2021

2022

2023F 2024F 2025F 2026F 2027F Net Absorption Vacancy Rate

healthy take-up of new projects is predicted.

Source: Cushman & Wakefield