HCMC commercial centers enjoy higher Q3 occupancy

By Vu Le   October 18, 2022 | 03:11 pm PT
HCMC commercial centers enjoy higher Q3 occupancy
HCMC’s District 1 teems with shopping centers and office buildings. Photo by VnExpress/Quynh Tran
Commercial centers in HCMC’s central business districts enjoyed nearly 94% occupancy in the third quarter, up 1 percentage point over the previous quarter.

Shopping malls and retail space outside downtown areas also performed well, with occupancy rates of 94% and 89%, respectively, according to CBRE Vietnam’s latest report on retail space.

The number of inquiries for renting retail space increased sharply, with potential tenants with 87% coming from food and beverage services, fashion and accessories, and lifestyle businesses.

Besides higher occupancy rates, rents also climbed up in the third quarter. The average rent on the ground floor of shopping centers in the downtown area was $185-250 per square meter per month, excluding VAT and service fees, up 52% year-on-year, and that in other areas around $38.

A new report from Savills Vietnam showed that international retail brands continued to expand in Vietnam thanks to stable domestic consumption growth. Japanese and Korean brands made up 44% of retail space in shopping centers in the first nine months of this year.

Many experts see rosy growth prospects for Vietnam’s retail market, but also caution about the impacts of inflation.

Pham Ngoc Thien Thanh, deputy director of CBRE Vietnam Research and Consulting Division, said offering rents in prime areas will continue to rise in the coming time as more foreign retailers come in. However, rising inflation will negatively impact consumer spending, so leading retailers’ growth will not be as high as previously expected, he said.

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