Ho Chi Minh City retail space supply continues to grow
The supply of Ho Chi Minh City retail space has increased to 1.2 million sqm this year, according to Savills Vietnam.
Despite losing 7300 sqm from the closure of one department store, more than 55,000 sqm was added from two supermarkets and three new shopping centres, including Vincom Landmark 81, which opened in July.
Average gross rent decreased 1 per cent quarter on quarter and 3 per cent year on year.
New supply outside the CBD offered competitive rents with the average occupancy increasing by one percentage point quarter on quarter, even after new space came on stream.
Savills reports Vietnam retail sales are up 12 per cent this year, with sales in the food & beverage sector up by 13 per cent.
High retail density in the Ho Chi Minh City CBD has been a factor in encouraging retailers to renovate and revise the tenant mix for wider appeal.
In the final quarter of this year, some 100,000sqm more retail space will come onto the market in projects outside the Ho Chi Minh City CBD, which will pressure overall performance.