Ho Chi Minh City Figures Q1 2024

Office: The office market in HCMC, continues to show signs of improvement in the first quarter of 2024, with asking rents for both grades increasing. In the first quarter of 2024, the market witnessed two large transactions over 10,000 sqm in newly opened office buildings in 2023, and both transactions involved expansion by international corporations. As a result, the net absorption area in the HCMC market in Q1 2024 was nearly 28,000 sqm, and the vacancy rates for Grade A and Grade B were also improved compared to the previous quarter.

Retail: In HCMC, there was no new supply in the reviewed quarter. During the first three months of 2024, Vietnam’s retail market continued to demonstrate positive developments, with rental prices and occupancy rates showing a steady increase. The leasing activities predominantly involved expansions by various foreign brands across diverse sectors, ranging from fashion and dining establishments to supermarkets.

Condominium: Despite limited new supply, the absorption rate of new launch reached approximately 80%, thanks to stable selling prices and attractive sales policies. The amendments of Housing Law, Real Estate Business Law and Land Law in late 2023 – early 2024 will influence major changes in the market.

Industrial land: In Q1 2024, due to relatively limited industrial land availability, the occupancy rate remained stable at 92%, with a net absorption of just over 20 hectares. Domestic and foreign manufacturers tend to expand to Tier 2 markets such as Ba Ria-Vung Tau and Tay Ninh, where industrial land supply is relatively abundant and rental prices are more competitive compared to Tier 1 markets. The RBW/RBF recorded strong absorption over 100,000 sqm in Q1 2024 thanks to the expansion of high-tech and e-commerce firms.