SUPPLY: SUSTAINABLE SUPPLY EXPANSION IN THE WEST
In Q1 2026, the market welcomed approximately 29,900 m2 of new NLA from two new projects in the West (one Grade A, one Grade B). Both projects are LEED-certified, highlighting a strong shift toward ESG standards. This reflects increasing developer focus on environmental standards and aligns with rising occupier expectations for greener buildings that support ESG objectives and long-term operational efficiency.DEMAND: DIVERGENT PERFORMANCE
In Q1 2026, Hanoi’s office market continued to record diverging performance across Grade A and Grade B segments.
• Grade A occupancy rose to approximately 78% (+0.7 ppts QoQ, +3.4 ppts YoY), indicating stable demand from occupiers seeking modern specifications and professional building management. Banking & finance and technology sectors remained the primary demand drivers during the quarter.
• By contrast, the Grade B segment recorded a modest correction, with occupancy easing to around 83%, (-1.1 ppts QoQ; -0.1 ppts YoY). This movement largely reflected the delivery of three Grade B projects in late 2025 and early 2026, which temporarily increased available supply. Notwithstanding this near-term impact, underlying demand for cost-efficient, well-located Grade B offices remains resilient, underpinned by ongoing infrastructure improvements in emerging office submarkets.
PRICE: RESILIENCE VS. COMPETITION
In Q1 2026, the average asking rent for Grade A offices in Hanoi reached USD 32.1 per sqm per month (+0.2% QoQ; +0.4% YoY). Meanwhile, the Grade B segment recorded a slight softening in rents (+1.0% QoQ: -0.6% YoY).
This divergence was primarily driven by new Grade B supply entering the market, which heightened competition and led landlords to implement more flexible leasing terms.
OUTLOOK: INTENSIFIED COMPETITION WITH UPCOMING HIGH-QUALITY SUPPLY
Hanoi’s office market is expected to see a significant expansion approximately 370,000 sqm scheduled for 2026 and 2028.
The West is account for 76% of upcoming stock. Older buildings face mounting pressure to renovate to remain competitive against high-spec, green-certificated newcomers.
Learn more by download our most recent Hanoi MarketBeat reports below.
