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Property

Demand for retail space in HCMC increases

Released at: 07:17, 09/04/2015

Demand for retail space in HCMC increases

A new report by Savills hints at future trends.

by Doanh Doanh

The retail market is expected to expand in secondary and suburban areas faster than the central business district (CBD) due to the increasing demand for goods from a large and growing population.

According to Savills, from 2015 onwards, total future supply in secondary areas will account for 57 per cent, followed by suburban zones with 27 per cent and the CBD at 16 per cent. Performance will be affected in 2015 when retail supply increases by 32 per cent over 2014.

In the first quarter of this year, two new shopping centres entered the market, increasing total retail space by 3 per cent quarter-on-quarter (QoQ) to approximately 896,000 square meters.

Average occupancy was relatively stable at 92 per cent QoQ and up 7 points over the course of a year. The average rent was stable per quarter at VND1.3 million ($60.4) per square meter per month.

The three main segments had unchanged occupancy rates QoQ. Department store occupancy was the highest at 97 per cent, followed by shopping centres at 92 per cent and retail podiums with 84 per cent.

  • TAGS
  • retail
  • Savills

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