VIETNAM, October 25 –
HCM CITY – HCM City’s commercial real estate market has returned to its pre-COVID-19 pandemic growth trajectory thanks to the retail and service sector as well as the growing number of foreign visitors to the city , said experts.
A report from the city’s Ministry of Industry and Commerce claimed that a year after the COVID-19 pandemic, local industries are back on track. Many sectors achieved positive growth.
The department said the city’s total retail and service sales in the first nine months of 2022 reached VNĐ466 trillion ($177 billion), up 21% from the same period. one year ago.
During this period, international visitors reached 1.87 million, which is 16.4 times more than the same period last year. About 70% of these visitors came from Asia.
Thanks to these positive signals, the real estate market has recovered.
Real estate services company Cushman & Wakefield said the occupancy rate for the entire market reached 93% and the combined total supply of shopping centres, department stores and retail units reached 1 million. m². The average rental price is $48.3 per square meter each month, up 5.6% from the same period last year.
The speed of building new retail supply is still quite low. From 2017 to 2019, HCM City saw an average of 80,000 m² put on the market each year; but over the past three years, no new offers have been registered.
However, future commercial projects are multiplying, with around 140,000 m² of space currently under construction.
In its latest quarterly report, CBRE said HCM City saw improved vacancy rates in both CBD and non-CBD areas compared to the previous quarter.
According to CBRE, third-quarter occupancy in the Central Area reached nearly 93.8%, up 1.0 percentage points quarter-on-quarter.
Meanwhile, the vacancy rate for the non-CBD area of HCMV was 11.4%, down 1.2 percentage points quarter over quarter. However, compared to the same period last year, the vacancy rate recorded an upward trend of 4.3 percentage points year-on-year in the CBD.
Thanh Phạm, Associate Director, Research and Advisory Department at CBRE Vietnam, said, “The asking rent in the CBD area is still high with upward momentum, especially in prime locations, as foreign retailers enter and develop their activities in the Vietnamese market. Vacancy rates tend to decrease slightly in non-CBD areas as some brands move to non-CBD areas and malls change tenant categorization to meet buying demand and expanding mark after COVID-19.
CBRE reported positive growth in the number of rental inquiries, particularly those focused on categories such as food and services (F&B), fashion and accessories, and lifestyle, which account for nearly 87% of the number. total inquiries.
The Food and Beverage (F&B) sector continues to rank first in total rental inquiries with a 26% increase QoQ since the start of 2022.
In Q3/2022, in the central area of District 1, famous brands such as McLaren, Beverly Hills Polo Club, ViinRiic Galeries De Parfumes, Maestro, De Obelly and Sohee entered the market. In September 2022, Decathlon was also officially inaugurated at Vạn Hạnh Mall, District 10.
Thanh Phạm said, “The asking price in the main area of the city will continue to increase in the coming times. With the growing interest of foreign retailers in the Vietnamese market, brands must seize the opportunity to expand their presence. »
Additionally, as rising inflation will negatively impact consumer spending, major retailers are expected to face more pressure and their revenues may not be as strong as expected.
Regarding future supply, HCM City is expected to receive a new mall by the end of this year with 35,000 sqm Thiso Mall in Thủ Đức City, and 144,000 sqm during 2023- 2024. —VNS
