Rental price of shopping mall in Ho Chi Minh City increase dramatically

, Rental price of shopping mall in Ho Chi Minh City increase dramatically

With the continuous expansion of brands, retail space rents are constantly increasing. Some tenants are still on the waiting list to “fight” for a prime location.

After a period of sluggish retail market due to the lack of new supply, the official opening of Thiso Mall (Thu Duc City) at the end of 2022 has contributed about 33,000 m2 of floor space, bringing the total supply to the market. operating retail to 1,052 million square meters, according to statistics from Cushman & Wakefield.

Immediately, big brands flocked here. Typically, Uniqlo fashion brand with a store of about 1,700 m2 is in the final stage of preparation before opening for sale. Meanwhile, F&B chains such as Starbucks, Pizza 4P’s, Paris Baguette as well as fashion brands Levi’s, Valetino Creation, Adidas… welcome customers at a new store at Thiso Mall.

Brands are expanding, rental price is constantly increasing

At many other shopping centers in Ho Chi Minh City, brands are also accelerating to expand their coverage. Typically, as noted by JLL, a retail giant from Japan – Muji, after a new 1,200 m2 store opened in Crescent Mall (District 7) is now also hatching a plan to open a store of more than 2,000 m2 in Vincom Megamall Thao Dien (Thu Duc City).

The market also welcomes some new brands such as Lesilla and Nerdy at Vincom Dong Khoi (District 1), Tiffany & Co at Union Square (District 1), ADLV at Thiso Mall, Memo Paris at Diamond Plaza and Takashimaya (District 1), Beauty in the Pot at Diamond Plaza…

It is worth mentioning that in 2022, many shopping centers have planned and carried out renovation and restructuring, including Diamond Plaza, which has reopened since the end of December 2022 with many high-end and luxury brands, rich products such as Jo Malone, Chanel, Lilliput, %Arabica, Beauty in the Pot hotpot…

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Hung Vuong Plaza (District 5) is also undergoing renovation and is expected to re-enter the market this year.

Meanwhile, Savills said that other large shopping centers outside the center such as Giga Mall (Thu Duc City), AEON Mall Binh Tan and Van Hanh Mall (District 10) are still receiving many rental requests, however, the vacant space has a small area and low number of visitors. Therefore, tenants are put on a waiting list until there are suitable positions available.

A survey by the Vietnam Association of Realtors (VARS) shows that the demand for retail space rental in 2022 is higher than in 2021. In which, the occupancy rate in the central area of Ho Chi Minh City reached 96. %, while the area outside the center is also at 85%.

mat bang ban le TP.HCM anh 1

mat bang ban le TP.HCM anh 1

The rent of commercial center space increased by 9-10% in the fourth quarter of 2022 over the same period. Photo: Quynh Danh.

In parallel with the expanding demand of retailers, the rental price has continuously increased since then. According to the latest report of Savills, nearly 40% of shopping mall projects have increased rents in 2022. In which, the rent on the ground floor increased by 10% year-on-year to VND 1.25 million/m2/month.

In general, Cushman & Wakefield recorded that the average rent in shopping malls is approaching 50 USD/m2/month, up 9.1% over the same period in 2021. In Hanoi market, data from Colliers shows that the average rent in the CBD reached 115 USD/m2/term, up 4.5% qoq.

Rental price this year may increase dramatically

This year, Cushman & Wakefield said that there are 4 projects expected to launch: Central Premium Plaza (District 8), Vincom Megamall Grand Park (Thu Duc City), Sunrise City Central (District 7) and Emart 2 (Go Vap), contributing more than 116,000 square meters of new retail space.

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Working with many different tenants, Ms. Trang Do, Head of Retail Services at Colliers Vietnam, said that the general trend of businesses today is to prioritize product development on multiple business platforms.

However, the physical sales channel is still considered the best experience value in today’s fiercely competitive retail market and helps the market grow well after the pandemic. Therefore, not only domestic investors but also foreign investors are actively looking for opportunities to expand their business activities in Vietnam.

“However, in the context of global macroeconomic instability, Vietnam’s retail market is also being affected to a certain extent. Investors and big brands are in the state of exploring premises with suitable locations and areas and waiting for adjustments from the market, from macro policies to support the real estate sector of the State in the coming time”, the report of Colliers acknowledged.

In this context, Ms. Le Thi Huyen Trang, Research and Consulting Director at JLL Vietnam forecasts that rents may increase dramatically in the next 12 months.

“It is expected that by the end of this year, renovated shopping centers in the central area will increase rents by 21.1% compared to the end of 2021. At the same time, the non-CBD areas will also have high rents due to demand of international F&B and fast fashion tenants,” said Ms. Trang.

According to the General Statistics Office of Vietnam, the total retail sales of consumer goods and services in 2022 increased by 19.8% compared to the previous year, estimated at nearly 5.7 million billion VND. In which, the total retail sales of goods is estimated at nearly 4.5 million billion VND, up 14.4% over the previous year.

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@ Zing News 


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