Vietnam Real Estate Market Report: Q3 2024 Update
According to the Vietnam Real Estate Brokers Association (VARS), the total retail sales of goods and services consumption in Vietnam for the first nine months of 2024 is estimated to reach VND 4,703 thousand billion, an increase of 8.8% compared to the same period last year.
In terms of commercial and retail real estate, the market witnessed the addition of approximately 71,000 sqm of new retail space from three major shopping centers: Aeon Mall Hue (51,000 sqm), Vincom Plaza Bac Giang (13,372 sqm), and Aeon Mall Ta Quang Buu (7,000 sqm). These new malls achieved high occupancy rates of around 90% upon their grand openings.
The supply of retail space is expected to increase further as Aeon Mall Vietnam received a memorandum of understanding from Bac Ninh province to develop a new commercial project in the province with a total expected investment of USD 190 million during the period of 2024-2025.
Meanwhile, Vincom Retail aims to expand its presence across Vietnam by opening six new shopping centers in 2024, including two Vincom Mega Malls and four Vincom Plazas, adding approximately 171,000 sqm of retail space. By the end of 2024, Vincom Retail is expected to operate 89 shopping centers in 48 provinces, introducing their new Life-Design Mall concept that integrates shopping, dining, and entertainment.
VARS also noted that new shopping centers are built with a modern and “all-in-one” approach, integrating shopping, entertainment, art appreciation, and experiences. These new malls achieved high occupancy rates of 90% upon opening, while older malls experienced a slight increase in vacant retail spaces as demand shifted towards the new developments.
“The premium commercial real estate segment in centrally-run cities is experiencing rapid growth compared to other ASEAN countries, with strong long-term growth potential,” the report stated.
Furthermore, the VARS Q3 2024 report indicated an increase in rental prices due to the addition of high-quality new supply and the renovation of existing shopping centers. In Hanoi, rental prices outside the city center ranged from USD 40 to 70 per sqm per month, a 3% increase quarterly, while prices in the central area ranged from USD 100 to 150 per sqm per month. Ho Chi Minh City saw a slight increase in rental prices in non-central areas, reaching USD 48 per sqm per month, while prices in the central area remained high at USD 150 to 300 per sqm per month.