Asia Pacific Office Outlook 2024

HO CHI MINH CITY

RENT GROWTH

 With new supply from non-CBD along with slowing demand due to economic instability, landlords will likely remain cautious in rent offer and escalation throughout 2024.  Rent growth may jump up to 5% in 2025 with the entry of new supply in the CBD.  In 2026, despite the expected recovery in office demand in line with the global economy, new supply in the non-CBD is expected to keep HCMC average rent stable.  Generally, the HCMC office market rent growth is sensitive to new supply and to economic new supply in the CBD in 2025 but is expected to fall back to 0% with the introduction of additional new supply in the non-CBD in 2026.  In 2024–2027, the HCMC average rent is forecast to remain stable, with less than 1% change each year, except for the jump in rent in 2025. conditions. The average rent growth surging by 5% is due to

R E N T ( U S D / S QM / M O ) A N D R E N T G R OWT H ( % P E R A N N U M )

60.00

6.00%

FORECAST

5.00%

59.00

4.00%

58.00

3.00%

57.00

2.00%

56.00

1.00%

55.00

0.00%

54.00

-1.00%

-2.00%

53.00

2021

2022

2023F 2024F 2025F 2026F 2027F USD/SQM/MO Rent growth (%)

Source: Cushman & Wakefield