CBD office demand drives fresh development in Ho Chi Minh City

CBD office demand drives fresh development in Ho Chi Minh City

Tighter office supply and resilient demand from international occupiers are creating fresh development opportunities in Ho Chi Minh City.

This trend is underscored by the repositioning of UOA Parc Tower into a Grade A office asset, aligned with the city's evolving commercial requirements. According to Avison Young's fourth quarter (Q4) 2025 market report, office rents in the city have remained relatively stable, with Grade A offices priced at around $55 per square metre per month and Grade B offices averaging approximately $32.50.

Leasing demand continues to concentrate in the central business district (CBD), where the market is gradually stabilising after a period of volatility. The city centre remains a preferred location for many enterprises, particularly multinational corporations in technology, finance, and professional services. This preference is driven by strong connectivity, brand prestige, and immediate access to Ho Chi Minh City’s dynamic business ecosystem.

While demand remains resilient, the pipeline for new office supply in the CBD is expected to remain limited in the coming years. According to Knight Frank’s Q4/2025 report, no new Grade B office supply is expected to enter the Ho Chi Minh City CBD until at least 2028, largely due to land constraints and rising development costs.

By the end of Q4/2025, the market recorded approximately 25,500 sq.m of new supply, bringing the total leasable office area to around 1.7 million sq.m, representing a 1.5 per cent increase on-quarter and a 4.8 per cent increase on-year. Of this total, Grade B offices account for more than one million sq.m, while Grade A space reaches approximately 650,000 sq.m, reflecting a clear shift towards higher-quality developments in prime locations.

Against this backdrop, the market has also seen growing portfolio restructuring and mergers and acquisitions (M&As), with several projects being transferred to new investors to accelerate development and enhance operational efficiency.

A notable transaction in September last year was UOA Ltd's acquisition of UOA Parc Tower. The deal was executed through the group's acquisition of VIAS Hong Ngoc Bao JSC, granting ownership of a prime 2,000 sq.m commercial site in the heart of Ho Chi Minh City.

At the 17th Vietnam M&A Forum in December, UOA Ltd was recognised as one of four standout real estate developers for the 2024-2025 period, specifically for this landmark transaction.

UOA Parc Tower is planned as a Grade A office building with a gross floor area (GFA) of approximately 14,300 sq.m and an estimated total investment of $120 million.

Given the restricted supply in the CBD, the project's progression following the deal is seen as a strategic move to unlock the potential of this central site while providing a premium new option for the market.

UOA Ltd was named a standout M&A developer for UOA Parc Tower

Location remains a critical factor for businesses when selecting office space. Buildings in the CBD offer clear advantages in terms of accessibility, proximity to services, and integration within the city’s commercial ecosystem. Located at 72 Vo Thi Sau Street in Tan Dinh Ward of Ho Chi Minh City, UOA Parc Tower sits in a prime central location overlooking Le Van Tam Park, one of the rare green spaces within the high-density urban core.

The project is also positioned within the broader central area that is expected to benefit from the future development of the Thu Thiem New Urban Area, which is being planned as an International Financial Centre aimed at strengthening Ho Chi Minh City’s role as a regional financial hub.

With 21 storeys and three basement levels, UOA Parc Tower will provide more than 14,000 sq.m of Grade A net leasable area. The project is positioned as a new option for businesses seeking premium workspace in the CBD.

Furthermore, the project plans to dedicate approximately 1.5 floors to a co-working model, targeting small- and medium-sized enterprises and tech startups, particularly as an increasing number of AI and tech firms expand their footprint in Vietnam.

“UOA Parc Tower reflects UOA Ltd's long-term commitment to the Ho Chi Minh City market and our confidence in the continued growth of the CBD office segment,” a UOA Ltd representative said.

UOA Parc Tower

Beyond location advantages, workplace trends are increasingly shifting towards sustainability and enhanced user experience. UOA Parc Tower is designed to achieve both LEED Gold and WELL certifications, two internationally recognised standards focusing on energy efficiency, environmental performance, and workplace wellbeing.

The building incorporates advanced technical solutions such as a double-glazed facade system to reduce heat and noise, energy-efficient central air conditioning, and a 100 per cent backup power system to ensure uninterrupted business operations.

In addition, the project integrates smart building solutions including high-speed elevators with destination control systems, QR code access control, and fibre-optic telecommunications infrastructure, helping create a modern and efficient working environment for the business community.

VIR