Saigon retail rents rise
Saigon retail rents are rising with space in the CBD hitting an average of US$135.50 per square metre in the third quarter, up by 5.8 per cent year-on-year.
According to a report by real-estate company CBRE, the average monthly rents outside the CBD were only US$35.80 per square metre, down 3.7 per cent quarter on quarter.
Saigon is commonly used to refer to the CBD, or District 1, of Ho Chi Minh City, Vietnam’s largest population centre.
As several shopping centres have witnessed renovation and tenant mix revision, abandoned retail space rates increase by 2.5 per cent and 8 per cent in CBD and non-CBD areas, respectively.
Ho Chi Minh City has become attractive to many investors and developers as a growing number of international retailers have chosen the city for their Vietnam debut.
The nation’s retail industry has also been drawing investment from offshore, with recent deals including Japanese apparel company Stripe International buying Vietnamese fashion brand Vascara, and a franchise agreement which will see South Korea’s CU convenience stores open next year. With the evolution of the industry, retail rents in Ho Chi Minh City are expected to continue to increase in the near future.
The city is predicted to add a further 237,000sqm of new retail space next year, including a new Vincom Megamall project in District 9 but it has yet to be seen how the new supply will impact on Saigon retail rents.