In Q1 2026, Ho Chi Minh City’s real estate market remained stable across office, retail, and hospitality segments. With limited new supply, the market has entered an “absorption phase,” where existing inventory is gradually taken up. Occupancy rates have improved slightly, while rental prices have remained stable. According to Avison Young Vietnam, the return of key growth drivers is supporting a more positive outlook for the remainder of the year.
Office market shifts toward efficiency
The office sector is transitioning into a more sustainable phase, moving away from rapid supply expansion toward optimizing existing assets. No new projects were launched in Q1, leading to a focus on leasing current space and modest gains in occupancy.
A clear divergence is emerging across locations. Grade A buildings in central districts continue to attract strong demand due to their quality and positioning, while non-central areas are gaining traction through more competitive pricing. Overall, the office market remains balanced, with localized variation but a stable outlook.
Retail rebounds on demand recovery
Retail performance reflects strengthening consumer demand. Despite minimal new supply, high-quality malls in central locations maintain high occupancy, with rental rates largely unchanged. Leasing activity remains active, driven by brands expanding in prime areas and investing in customer experience.
Consumer expectations are shifting beyond transactional shopping toward experiential engagement. This is prompting retailers and developers to rethink strategies, including tenant mix and value-added services.
Hospitality focuses on quality and positioning
The hospitality sector posted encouraging results, particularly in mid-range and upscale segments. Average room rates for 4–5 star hotels in the city center reached approximately 167 USD/night, compared to up to 200 USD in Ba Ria-Vung Tau resort markets, reflecting differences between business and leisure demand.
New developments are increasingly concentrated in mid-tier to luxury segments, aligning with rising customer expectations. The sector is entering a “transformation phase,” prioritizing quality and operational performance over rapid expansion, supported by a strong tourism recovery.
Upcoming projects involving international brands are expected to elevate market standards and enhance competitiveness.
Investor sentiment strengthens
Vietnam’s real estate market is entering a new phase, with global capital shifting from exploration to active deployment. Investors are now approaching the market with greater strategic clarity, focusing on scale, quality, and long-term positioning.
This marks a significant step in market maturation, as Vietnam transitions from an emerging opportunity to a core component of regional investment strategies.
Supported by continued momentum in consumption, tourism, and investment, HCMC’s real estate market is well-positioned for sustained growth, albeit along a path of steady, measured expansion requiring adaptability and long-term vision.