Segment of retail space last flourishes

According to the recent report of the company Cushman & Wakefield Vietnam, in December, in HCM City, the average rent on the ground floor is a downward trend. Overall market average price recorded 1,350,000 VND / m2 / month (including service charge but excluding VAT), up 4% compared to the same period last year. The average occupancy rate reached 94% of the total market, up 2% compared to the same period of 2015.

In Hanoi, the average rent on the ground floor at the end of the year also tends to decline, currently at 855,000 VND note / m2 / month (including service charge but excluding VAT). This price is higher than 3% over the same period in 2015.

 

In particular, Hoan Kiem district still has the highest rents in Hanoi, more than three times the average rate of the whole market. The reason is that when a prime location in scarce supply. Next to the sub-center districts like Dong Da, Hai Ba Trung, Ba Dinh also relatively high price, the outlying areas such as Ha Dong, Long Bien and less expensive than the overall market average of 35% - 50 %.

However, retail space in the center and near the central district will attract major rental demand. As of late January 2016, the average occupancy rate of the whole market in Hanoi and 88%, up 4% over the same period last year.

Mr. Alex Crane, General Manager Vietnam Cushman & Wakefield, said: "Vietnam Retail Market increasingly good growth within the first 3 quarters of 2016. Retail sales increased by nearly 10% over the same period last year , predicts this growth will continue until 2030. in terms of growth by year, Vietnam ranked second in the region, after Indonesia. Consumer confidence continued to rise has strengthened the confidence of retailers and real estate developers. "

 

 

In parallel, the after-tax income of families in Vietnam and gradually increased over the years. This is a good sign for the retail business, especially in the retail food and beverage - segment contributed to the core of the retail market in Vietnam.

Anticipated this trend, the real estate developer focused on design also leased premises towards increasing the area allocated for the dining area. Usually in every project, leasable area bar area accounted for 20% of total floor area, it has been adjusted to a 35% increase.

According to representatives of Cushman & Wakefield, in 2016, many foreign brands simultaneously penetrate the retail market in Vietnam. In particular, a large number of suppliers may be mentioned as Saigon Center in Ho Chi Minh City developed by the Group Takashimaya; Mipec new suppliers have good activities in Hanoi ...

Add providers leased premises means that increase supply but in both cities occupancy rate rental space still pretty good. This demonstrates the stability of the market and bodes well for the development as well as the rental unit retail locations.