Shopping malls find more takers in Q3 after facelift

Hung Vuong Plaza in HCMC with an area of 25,000 square meters became operational again in the third quarter after closing for repairs following an ownership change.

After buying Hung Vuong Plaza from Parkson Vietnam, Kinh Do Corporation doubled the number of its entrances to four.

Even before reopening it reported an occupancy rate of more than 80%, much higher than before, at monthly rents of US$30-95 per square meter.

Japanese retailer Takashimaya bought Indochina Plaza Hanoi, renovated it for two years and renamed it The Loop Shopping Center in June.

Vivo City, Giga Mall and Vincom 3/2 shopping malls in HCMC too are planning renovations and changing their tenant structure next year.

Real estate consultancy Cushman & Wakefield said some malls restructured their layouts in the third quarter to optimize shopping space, and as a result the average rent in their ground floor increased by 10% and 7.3% in Hanoi and HCMC.

The occupancy rates were 85% in Hanoi and 90% in HCMC.

According to another real estate consultancy, CBRE, limited new supply and steady demand pushed up occupancy rates and rents in both cities.

Ground floor rents are $200-350 per square meter in downtown HCMC and $162 in Hanoi.

Expansion by several retail giants also made the market more vibrant in the third quarter.

In Hanoi, Korea’s Lotte opened Lotte Mall Westlake Hanoi in Tay Ho District with a rental area of 72,000 square meters, and was fully occupied on opening day on Sept. 22.

Thailand’s Central Group launched a new furniture brand in the southern Dong Nai Province and the central Quang Nam Province, and Japan’s Aeon Mall unveiled its supermarket model in the southern Binh Duong Province.

Aeon Mall Hue, the retailer’s first mall in the central region, is expected to open in 2024 with 138,000 square meters of space.