According to Lao Dong, a series of shopping malls located in the center of Ho Chi Minh City such as Saigon Center, Diamond Plaza, Parkson Le Thanh Ton, Vincom Dong Khoi... are sought after by many tenants, with high occupancy rates due to domestic and foreign brands.
Shopping malls in the suburbs also have an increased number of visitors and diverse tenants thanks to regular renovations and upgrades.
Mr. Nguyen Tung Duong - manager of a fashion store at Diamond Plaza (District 1) said: "Compared to the beginning of the year, there is almost no vacant space at this time. Famous food and fashion brands have joined the shopping mall, so the number of customers is also more bustling."
Statistics from CBRE Vietnam Commercial Real Estate Investment and Services Company show that new shopping malls are almost 100% filled, leading to an average vacancy rate across the entire market, both in the central and non-central areas, approximately equal, at only 5-6%.
Asking rents in the central area remained largely unchanged due to a lack of leasable space, with ground and first floors averaging $274.1 per square meter.
The average asking rent in non-CBD areas was recorded at USD 53.3/m2, down 0.9% compared to the previous quarter due to new shopping centers located in suburban districts, which have lower rents than the general level.
“Asking rents in HCMC have increased significantly in recent years; shopping malls in prime locations continue to be highly sought after by tenants, including both new entrants and existing brands.
It can be seen that, after a long period of silence and the impact of the COVID-19 pandemic, brands have gradually regained confidence and become more confident in expanding their chain of stores" - CBRE Vietnam representative commented.
According to real estate services company Cushman & Wakefield, in the next 3 years, most of the new supply in Ho Chi Minh City will be in the form of shopping malls in commercial podiums of commercial and residential complexes.
This trend is considered a positive signal for the market, as investors increasingly focus on developing commercial projects in a professional manner to provide high-quality amenities for end-users, instead of focusing only on selling commercial townhouses to individual customers.
Ms. Tran Pham Phuong Quyen - Senior Manager of Retail Leasing, Savills Real Estate Services Group in Ho Chi Minh City said that the central area often has a stronger attraction for luxury brands. The retail market in the central area of Ho Chi Minh City continues to welcome many new international brands to participate in prime shopping mall projects such as Vincom Dong Khoi, Saigon Centre.
“Vietnam has the advantage of a young population and a market of nearly 100 million people. In particular, large cities have a group of young consumers who are sensitive to trends, have an increasingly high standard of living, and have a great need to integrate and express themselves. These are factors that help shopping brands and food and entertainment services still have a lot of potential,” said Ms. Tran Pham Phuong Quyen.
