“The rising star” of the real estate market

(NLDO) - Luxury hotels and class A offices surge as foreign investors flock to Vietnam.

Real estate market reports for the first quarter of 2026 in Ho Chi Minh City reveal that luxury hotels and high-end office leasing segments are outperforming the broader market.

Stability driven by high-quality demand

According to Savills Vietnam, disbursed foreign direct investment (FDI) reached $5.4 billion in Q1—the highest level for the first three months of a year since 2021. This influx not only bolsters international investor confidence but also ensures sustainable demand across the industrial, office, and serviced apartment real estate sectors.

Notably, the office market has maintained equilibrium with an 88% occupancy rate. The emergence of landmark projects like the IFC HCMC (on Ton Duc Thang Street) has acted as a magnet for Class A tenants, rapidly positioning the Thu Thiem area as the city's new commercial hub.

In Q1 2026, office leasing transactions in Ho Chi Minh City saw slight improvements, driven primarily by multinational corporate demand.

Occupancy rates hit 92% for Class A and 90% for Class B properties. Select developments, including ThaiSquare The Merit and The Hallmark, achieved 100% occupancy.

The Hallmark building boasts a remarkably high occupancy rate

Savills noted a steady increase in the supply of Class A offices in both Ho Chi Minh City and Hanoi in recent years. This reflects a broader investment trend toward high-quality assets that meet stringent operational standards, offer premium amenities, and hold green certifications.

Tenants are increasingly prioritizing space optimization, enhanced workplace experiences, and flexible working environments.

Hospitality sector pivots toward quality enhancement

In the hospitality sector, the three major markets of Ho Chi Minh City, Hanoi, and Da Nang all recorded positive growth in Q1, fueled by the peak holiday and Lunar New Year tourist seasons. Overnight visitors reached 17.8 million, a 15% year-on-year increase, directly driving up demand for resort real estate.

In Ho Chi Minh City, numerous international brands are entering the market with large-scale projects such as Caption by Hyatt Ba Son, The Okura Prestige Saigon, and Nobu Ho Chi Minh Hotel. These developments are elevating market standards and enhancing the destination's competitive edge.

According to Avison Young Vietnam, the hotel and resort market is entering a "transitional phase." The focus is shifting away from merely expanding supply toward improving product quality and operational efficiency.

Room rates for 4- and 5-star hotels in downtown Ho Chi Minh City average around $167 per night, while neighboring areas like Vung Tau have seen rates climb to $200 per night. New projects are heavily targeting the mid-range, premium, and luxury segments to meet increasingly sophisticated consumer demands.