In-Depth Analysis: Hanoi Office for Lease Market – Q3/2025 Supply Update and 6-Month Forecast

I. Market Summary Q3/2025: Rebalancing Quality Supply and Demand

The Marc Tower (88 Tran Thai Tong)

1. New Supply: The Emergence of Grade A Projects

Q3/2025 saw the entry of new office projects, mainly in the high-end segment, focusing on non-CBD areas, meeting the upgrading needs of businesses:

The arrival of these Grade A buildings in the peripheral central and Western areas created a new wave, forcing older buildings to renovate or adopt more flexible leasing policies to maintain occupancy.

2. Price and Occupancy Fluctuations

• Rental Price: The overall average rental price continued a slightly upward trend, increasing by about $1-3$ quarter-on-quarter (QoQ). Notably, the Central Business District (CBD) remains the anchor with high asking rents, reaching approximately 860,000 VND/m2/month.
• Occupancy Rate: The market shows clear segmentation:
  • Grade A: Occupancy recorded a slight decrease compared to the same period last year (down to around 78%-86%). This reflects the pressure from new high-quality supply and tenants switching to better-standard buildings, or non-CBD locations with more optimal costs.
  • Grade B: Occupancy slightly improved, indicating stable absorption of new supply.
  • Grade C: Continues to be the strongest segment with a high occupancy rate (around 92%), demonstrating stable demand for affordable offices in non-central areas.

II. Market Forecast for the Next 6 Months (Q4/2025 – Q1/2026)

Oriental Square (Tay Ho)

In the final two quarters of 2025 and early 2026, the Hanoi office for lease market is predicted to become more vibrant and competitive due to upcoming high-quality supply.

1. Potential Upcoming Supply

About 265,000m2 of new office floor area is expected to enter the market by 2027, with the majority being Grade A, concentrated in the Western area. Notable projects expected to be completed or handed over in the next 6 months (Q4/2025 and Q1/2026) include:

2. Demand Trends and New Standards

• “Flight to Quality” Trend: Businesses will leverage the abundant supply to upgrade their offices from Grade B/C to new Grade A/B+ buildings at the same (or slightly higher) rental budget.
• Green and Flexible Offices: Buildings with green certifications, smart technical systems, and the ability to offer flexible space solutions will have a decisive competitive advantage. Multinational companies and IT firms will prioritize spaces meeting sustainability standards.
• Western Area Growth: Cau Giay and Nam Tu Liem areas will continue to lead demand, thanks to the synchronized development of infrastructure and the concentration of major urban areas.

3. Rental Price Forecast

• Grade A: Prices may stabilize or increase slightly in the CBD (due to limited supply) but will face rental competition pressure in non-CBD areas. Landlords will prioritize offering favorable lease terms over lowering the listed price.
• Grade B: Continues to maintain stability. Newer Grade B buildings will offer more attractive prices than older ones, creating fierce competition.

III. Recommendations from Odin Land

The period Q4/2025 and Q1/2026 is a golden time for businesses looking for Hanoi office for lease to execute their transformation and expansion strategies:

1. Secure early incentives: Take advantage of discounts/rent-free fit-out periods offered by buildings about to open to secure the best rates for long-term leases.
2. Re-evaluate standards: Prioritize selecting new buildings with high technical standards and green criteria to optimize long-term operating costs (A/C, electricity) and ensure a healthy working environment for employees.

Customers looking for detailed information on upcoming Grade A and Grade B+ office projects, or wishing to receive exclusive promotional quotes for key buildings, please contact Odin Land – the leading consulting unit in the Hanoi office for lease market.

Odin Land – Strategic Office Consulting