Ho Chi Minh City Figures Q2 2024

Office: In the first half of 2024, the HCMC office market had one new supply – Etown 6 – the first grade A office in Tan Binh District. Opening at the end of June, this building offers a total NLA of approximately 37,000 sqm. Record volume of new supply in 2023 has driven the vacancy rates of Grade A office to nearly 21%, the highest in the last 10 years, up 3ppts q-o-q and 13.3 ppts y-o-y.

Retail: HCMC market welcomed new supply from Vincom Megamall Grand Park in District 9 and the renovated Vincom 3/2 project with a total leasable area of 56,000 sqm. Givern the persistent strong demand and limited available space in the CBD locations, rents in the CBD continue to increase to US$280 psm, 18.5% higher y-o-y.

Condominium: Sold units in Q2 nearly doubled those in Q1 while primary and secondary prices increased slightly. With revisions to the Housing Law, Real Estate Business Law, and Land Law set to take effect from August 2024, coupled with limited supply, selling prices are expected to continue rising.

Industrial land: The overall occupancy rate for industrial land remains stable at 89%. Manufacturers are increasingly looking towards Long An and BR-VT for expansion due to their abundant land supply. While the RBW sector saw no new supply in H1 2024, occupancy rates rose to 61% fueled by major deals in HCMC and Long An. Meanwhile, the RBF market witnessed a surge in new space, with substantial projects in Binh Duong and Dong Nai contributing to a slight decrease in occupancy to a still-positive 81%.