Hanoi Grade A office stock hits 652,00sqm in Q2
The supply surge may strengthen tenants’ negotiating position and increase pressure on older buildings to upgrade assets and refine leasing strategies, particularly as West Westlake expands.
Hanoi’s Grade A office stock reached 652,000 sq m in Q2 after IFC Hanoi added 60,000 sq m, lifting vacancy by 7 percentage points to 26.2%.
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The new IFC Hanoi added 60,000sqm of net leasable area.
Hanoi's Grade A office market recorded positive net absorption in the first half of 2026, led by demand outside the central business district (CBD), according to JLL. Quarterly net absorption reached 2,600 sq m in Q2, taking the H1 total to 3,200 sq m.
JLL said the CBD continued to face challenges in Q2, including cyclical tenant departures as leases expired. However, demand for newly completed buildings in non-CBD locations kept overall market absorption positive.
The city's Grade A office stock reached 652,000 sq m of net leasable area (NLA) by the end of Q2 following the completion of IFC Hanoi, which added 60,000 sq m of NLA in the West Westlake cluster. The LEED Gold-targeted mixed-use project offers premium amenities and represents a significant addition to the non-CBD market, JLL noted.
The influx of space temporarily pushed Hanoi's overall office vacancy rate to 26.2% in Q2, up 7 percentage points from 19.2% in Q1, as the market works through the newly available stock.
Rental trends diverged between the CBD and non-CBD markets. JLL said most existing buildings kept net effective rents unchanged during the quarter to remain competitive and retain tenants ahead of further supply. Grade A net effective rents in the CBD remained at USD 32.7 per sq m per month, while non-CBD rents rose 2.4% quarter-on-quarter to USD 24.1 per sq m per month, partly because new buildings entered the market at above-average rents.
Looking ahead, JLL expects the substantial five-year supply pipeline in West Westlake to reshape Hanoi's office market. With much of the future non-CBD supply concentrated in the cluster, tenants will have more access to modern, amenity-rich offices.
The consultancy expects older buildings across Hanoi to face greater competitive pressure as a result, potentially prompting landlords to upgrade assets and refine leasing strategies to attract and retain occupiers.