Saigon retail rents are rising with space in the CBD hitting an average of US$135.50 per square meter in the third quarter, up by 5.8 percent 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 meter, down 3.7 percent quarter on quarter.
Saigon is commonly used to refer to the CBD, or District 1, of Ho Chi Minh City, Vietnam’s largest population center.
As several shopping centers have witnessed renovation and tenant mix revision, abandoned retail space rates increase by 2.5 percent and 8 percent 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.
