Vacancy rate of offices in HCM City predicted to reach record in 12 years
The vacancy rate of offices in Ho Chi Minh City reached 18% in the third quarter of 2023, while rents decreased by between 0.2 -2.2% quarterly, according to Knight Frank Vietnam, a leading real estate consultancy.
Office buildings in Thu Thiem area, Ho Chi Minh City (Photo: VNA)
HCM City (VNA) – The vacancy rate of offices inHo Chi Minh City reached 18% in the third quarter of 2023, while rents decreased by between 0.2 -2.2% quarterly, according to Knight Frank Vietnam, a leading real estate consultancy.
In its report on HCM City office market in the third quarterof 2023, Knight Frank Vietnam predicted that in the fourth quarter, the office vacancyrate will increase to over 20% due to new supply in Thu Thiem area in Thu Duccity, which is a 12-year high.
Specifically, in Ho Chi Minh City, rents decreased 2.2% quarter-on-quarter for Grade A office and 0.2% for Grade B office, while Grade A office vacancy rateincreased to 18.2% and that in Grade B rose to 11.6%. Currently, the Grade Aoffice segment has a total vacant floor area of about 73,000 sq.m and an averageasking rent of 57.60 USD per sq.m per month.
Alex Crane, CEO of Knight Frank Vietnam, said that a decreasein office rental prices had already been forecast in 2022, so this is not a shock toinvestors. On the other hand, the new supply is welcomed by the market,because the city has not had any Grade A office building since 2017, hesaid, commenting that this period is too long for a large urban area like HCMCity.
According to Knight Frank Vietnam, the total office floor area forrent is currently higher than in 2011.
It noted that the trend of lowering the average rent ofGrade A offices is partly due to the impact of the opening of new officebuildings in Thu Thiem area, which have more attractive asking rents than thecentral area in District 1.
The report also showed that there will be another officebuilding coming into operation in the fourth quarter, providing an additional50,000 sq.m of floor space for the Grade A office market, pushing up thevacancy rate to more than 20% by the end of this year. During the same period,Grade B office rental prices are also expected to decrease by 6%, down to 32USD per sq.m per month, it said./.
A wave of foreign businesses are coming to learn about potential real estate projects in Vietnam to carry out mergers and acquisitions (M&As), reported Dau tu (Vietnam Investment Review) newspaper.
Continuous interest rate cuts and support policies are gradually proving effective, helping ease difficulties facing the real estate market, experts have said.
The number of newly-established real estate businesses stood at 3,066 in the first eight months of this year, a decline of 53.4% over the same period last year, according to the General Statistics Office (GSO) under the Ministry of Planning and Investment.
Despite the Government’s efforts to address them, the challenges for the property market will continue until the end of next year, experts have warned.
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.
Office buildings in Thu Thiem area, Ho Chi Minh City (Photo: VNA) 
