Ho Chi Minh City's commercial property market has returned to its growth trajectory
In its latest quarterly report, CBRE said that HCM City recorded improved vacancy rates in both central business district (CBD) and non-CBD areas compared to the previous quarter.
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| HCM City’s office leasing market sees positive signs. (Photo:Bitexco) |
Ho Chi Minh City's commercial property market has returned to its growth trajectory from before the Covid-19 pandemic, with positive signals seen in the office market, according to real estate firm CBRE.
The occupancy rate in the third quarter in the central area reached nearly 93.8%, up 1.0 percentage point quarter-on-quarter.
Meanwhile, the vacancy rate of the non-CBD area of HCM City was 11.4%, down 1.2 percentage points quarter-on-quarter. However, compared to the same period last year, the vacancy rate recorded an upward trend of 4.3 percentage points year-on-year in the CBD.
Thanh Pham, associate director, research and consulting department at CBRE Vietnam, said: “The asking rent in the CBD area is still high with an upward momentum, especially in prime locations as foreign retailers are entering and expanding their businesses in the Vietnamese market. Vacancy rates tend to decrease slightly in non-CBD area as some brands shift towards non-CBD areas and shopping centres are changing the tenant’s category to match the shopping demand and brand expansion after Covid-19.”
CBRE reported positive growth in the number of leasing inquiries, especially those focusing on categories such as food and service (F&B), fashion & accessories, and lifestyle, which account for nearly 87% of the total number of requested inquiries.
The food and beverage (F&B) sector continues to rank first in the number of total leasing inquiries with a 26% quarter on quarter increase since the beginning of 2022.
In Q3/2022, in the central area of district 1, famous brands such as McLaren, Beverly Hills Polo Club, ViinRiic Galeries De Parfumes, Maestro, De Obelly and Sohee entered the market. In September 2022, Decathlon was also officially opened at Van Hanh Mall, district 10.
Thanh Pham said: “The asking price in the prime area of the city will continue to increase in the coming time. With the increasing interest of foreign retailers in the Vietnamese market, brands need to seize the opportunity for presence expansion.”
In addition, as rising inflation will have a negative impact on consumer spending, leading retailers are forecast to face more pressure and their revenues might not be as high as expected.
(Source: VNA)
