COMMERCIAL LEASING FEE IN HCMC IS INCREASING
The cost of renting a retail space in District 1 in the Quarter III/2019 reached nearly 140 USD/m²/ month, up 5.8% over the previous year and 3.7% compared to the Quarter II/2019.
At the same time, the average price for retail space in suburban locations is 35.8 USD/m²/ month, down slightly by 0.9% compared to the Quarter II/2019 and less volatile year by year.
The vacancy rate is almost unchanged. Occupancy rates in shopping centers have decreased because many are in the process of renovating or changing tenants.
According to many experts, the HCMC retail market is always an attraction for foreign retailers based on the young population growth rate. Most retailers first set foot in HCMC when entering into Vietnam.
Acquisitions, mergers, acquisitions and new establishment in Vietnam’s retail market recorded a positive performance in the past quarter:
- Recently, Stripe International (Japan) acquired the Vascara brand, after two years of acquiring the NEM brand.
- Amazon officially established a company in Vietnam, aiming to support small and medium businesses in addition to individuals selling online.
- According to information from Insider Retail Asia, Korean BGF retail group will jump into Vietnam market in 2020, starting from convenience store model.
Regarding consumer trends, the categories of dining, fashion and accessories, entertainment, convenience stores and beauty health will continue to attract retailers in the near future. At some shopping malls, the industry restructuring is still taking place to meet these trend changes.
By the end of September 2019, there were 57 retail real estate projects operating in HCMC with a total leasing area of 1,043,000 m². In the Quarter IV/2019, the shopping center project in the southern area of HCMC, The Center Point Shopping Plaza, will be put into operation with a total leased area of approximately 16,000 m².
In 2020, HCMC will welcome 237,000 m² of retail space to be put into operation from eight new projects across the region. Particularly, the East Area (District 9) will receive the commercial center, Sense City, with the largest scale ever (48,000 m²).