HCM City’s office market sees robust growth: Knight Frank
Ho Chi Minh City's office market is experiencing record absorption in 2024, demonstrating its vitality and resilience as well as consolidating its position as an attractive destination for both domestic and foreign businesses looking for strategic development opportunities in Southeast Asia, according to Knight Frank, one of the world's leading real estate consultancies.
HCM City (VNA) - Ho Chi Minh City's office market is experiencing record absorption in 2024, demonstrating its vitality and resilience as well as consolidating its position as an attractive destination for both domestic and foreign businesses looking for strategic development opportunities in Southeast Asia, according to Knight Frank, one of the world's leading real estate consultancies.
In just nine months of 2024, the city's office leasing market reached 96,400 sq.m of Net Lettable Area (NLA), aiming for the highest net absorption in more than a decade. This figure far exceeds the previous record of 81,300 sq.m NLA recorded in 2019.
The absorption rate is high, but the asking rent is still relatively stable, thanks to the building owners offering many incentives to tenants, helping to increase the occupancy rate without significantly increasing the rent, Knight Frank Vietnam assessed.
According to the consultancy, office leasing in the southern metropolis was significantly contributed by strong demand from businesses in the information technology, technology, pharmaceutical, finance, and banking industries.
Knight Frank noted that some older office buildings in HCMC have increasing amounts of vacant space as tenants choose the new buildings with Green Certificate in a ‘flight to quality’ scenario, particularly with good incentives being offered for large occupiers. As of Q3 2024, the vacancy rate of the whole market slightly increased by 2 percentage points quarter-over-quarter to 12%, which accounting for new supply, shows good performance.
𒁃 “Since the HCM City office market is becoming more competitive for both landlord and tenant, it is important for landlords to keep rental rates attractive to prevent their tenants from moving to newer buildings that offer higher quality often at lower cost. We predict that many landlords will have to review their leasing policies, resulting in a wider difference between asking and achievable rent in the coming months. We expect this trend to continue into 2025 with the market remaining in favour of tenants for the time being,” said Leo Nguyen, Director of Occupier Strategy and Solutions at Knight Frank Vietnam./.
Vietnam's real estate sector recorded the establishment of 4,241 new companies in the first 11 months of this year, marking a 2.6% annual dip, reported the General Statistics Office (GSO).
Vietnam's real estate price growth over the past five years has reached 59%, significantly higher than other countries, according to data from the Global Property Guide.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
