Outlook 2023 Vietnam

HANOI

DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

50,000

35.0%

 Tenant demand in 2022 has been driven by industries such as Insurance, Finance/Banking, Manufacturing, E-commerce, and Logistics. High-quality new supply remains desirable and in high demand.  A flight to quality is driving the market as tenants chase limited prime space and newer and better developed large-scaled projects in non-CBD areas. Healthy net absorption is expected across the market in the upcoming years.  Vacancy is expected to head higher before easing in 2026 once new supply stabilises.

45,000

30.0%

40,000

25.0%

35,000

30,000

20.0%

25,000

15.0%

20,000

15,000

10.0%

10,000

5.0%

5,000

0.0%

0

2020

2021

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

Source: Cushman & Wakefield