Vietnam Real Estate Q3 2026: Vietnam Real Estate Markets Remain Firm as Occupiers and Buyers Become More Selective
Ho Chi Minh City, October 2026 – Vietnam’s major real estate markets remained active in Q3 2026, although occupiers and residential buyers became increasingly selective on price and quality, according to Knight Frank Vietnam’s latest quarterly market research.
Office Occupiers Gain Greater Choice as Supply Continues to Grow
Ho Chi Minh City’s office market remained relatively well occupied at 87.2%, despite negative net absorption of approximately 4,370 sq m during the quarter. The decline was concentrated largely in older Grade B stock, while Grade A recorded positive net absorption of 1,133 sq m. Grade A asking rents averaged US$58.58 per sq m per month, down 0.4% quarter-on-quarter.
“The current market gives occupiers a valuable window to upgrade their workspace and secure more competitive leasing terms. For tenants with lease expiries coming up in the next 6–12 months, now is a good time to start planning and engaging with the market, as this can create a better opportunity to align their requirements with available options and budgets. The focus is increasingly shifting from simply reducing occupancy costs to achieving better quality, flexibility and workplace performance,” said Leo Nguyen, Senior Director of Occupier Strategy & Solutions, Knight Frank Vietnam.
Approximately 102,000 sq m of new office space is expected to enter the HCMC market through the end of 2027, providing further options for occupiers.
Hanoi continues to face greater supply pressure. Grade A asking rents remained at approximately US$34.26 per sq m per month, while around 62,000 sq m of additional office space is expected through the end of 2027, predominantly in West Westlake. The additional supply is expected to maintain competitive conditions for tenants.
Residential Sales Improve in Ho Chi Minh City
Residential activity strengthened during Q3. HCMC recorded 2,493 apartment sales, up 40% quarter-on-quarter, against 2,711 newly launched units.
Across Greater HCMC, which includes the former Binh Duong and Ba Ria–Vung Tau markets, sales reached 7,534 units, with an overall absorption rate of 45%. Affordable and mid-end projects outside the traditional HCMC boundary continued to broaden the range of options available to buyers.
Average primary asking prices in HCMC increased 3% quarter-on-quarter to US$4,210 per sq m, largely reflecting the launch of new luxury and ultra-luxury projects rather than broad-based price growth across the market.
“Despite considerable headwinds, genuine end-user demand continues to support apartment transactions, with buyers carefully assessing their household finances and the quality of individual projects, alongside the range of support measures offered by developers. We expect new policies to improve market transparency, strengthen owner-occupier confidence and gradually narrow the mismatch between supply and demand.” said Son Hoang, Associate Director, Valuation and Advisory, Knight Frank Vietnam.
Hanoi recorded 2,960 apartment sales during the quarter, exceeding the 2,558 newly launched units, although both sales and new launches declined from Q2. Average primary asking prices were broadly stable at US$4,349 per sq m, down 0.15% quarter-on-quarter.
Prime Retail Remains Tight
HCMC’s prime retail market remained one of the strongest-performing commercial segments, with occupancy reaching 96.6%.
Approximately 7,700 sq m of positive net absorption was recorded across Q2 and Q3, while average ground-floor asking rents across prime shopping centres remained broadly stable at US$85.9 per sq m per month. CBD prime rents stood considerably higher at approximately US$249 per sq m per month.
No significant new prime retail completions are expected through 2027, supporting continued competition for well-located space.
“We continue to see resilience in prime locations, particularly among fashion and F&B brands. Retailers are becoming more focused on creating distinctive experiences and selecting locations that support both brand visibility and long-term performance. However, tenant turnover is also relatively rapid, particularly in prime CBD locations where high rental levels can put greater pressure on store economics. This makes disciplined site selection and sustainable occupancy costs increasingly important for retailers.” added Leo Nguyen.
An Increasingly Differentiated Market
Knight Frank Vietnam said the Q3 results point to an increasingly differentiated market. Office occupiers are benefiting from greater choice and negotiating leverage, residential buyers remain active but increasingly selective on pricing and product quality, while limited supply continues to support prime retail performance.
“The overall picture is reasonably encouraging,” Alex Crane, Managing Director, Knight Frank said. “Not every sector or price point is moving in the same direction, and that is healthy. The market is becoming more competitive and more selective. For occupiers and buyers, that creates opportunities; for landlords and developers, it puts greater emphasis on pricing, quality and execution.”
About Knight Frank Vietnam
Operating in one of the fastest-growing markets in Asia with strong GDP, Knight Frank Vietnam offers full spectrum commercial advisory services in a lucrative and increasingly competitive commercial real estate sector. We help local and foreign owners, occupiers, investors and developers in every aspect of owning, occupying, developing and in commercial real estate across Vietnam focusing primarily on core markets in the country’s two biggest seats of business and commerce, Ho Chi Minh City and Hanoi. Please visit us at www.knightfrank.com.vn
