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.
Fig 1. Total retail sales and consumption services revenue in Q3 2024
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 opening.
Fig 2. Commercial and retail real estate supply in Q3 2024
On September 22, at the Conference on Announcing the Planning Period of 2021-2030 and Vision to 2050, as well as Investment Promotion in Bac Ninh province, Aeon Mall Vietnam received a memorandum of understanding for researching and developing the Aeon Mall commercial project in the province with a total expected investment of USD 190 million.
Meanwhile, Vincom Retail aims to expand its presence across Vietnam in 2024, with the opening of six new shopping centers, 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 have 89 shopping centers in 48 provinces and cities nationwide. In addition, they are developing the new-generation Vincom Mega Mall – a Life-Design Mall integrating shopping, dining, and entertainment.
VARS also noted that the new malls are constructed with a modern, “all-in-one” concept, integrating shopping, entertainment, art appreciation, and experiences. These new malls achieved high occupancy rates of up to 90% upon opening, while older malls experienced a slight increase in vacant retail spaces as demand shifted towards the new developments.
Fig 3. A modern shopping center in Hanoi, Vietnam
“The high-end 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 noted an increase in rental prices due to the addition of new high-quality supply and the renovation of existing malls. In Hanoi, rents outside the city center ranged from USD 40 to 70 per sqm per month, a 3% increase quarterly, while rents in the central area ranged from USD 100 to 150 per sqm per month. In Ho Chi Minh City, rents in the outer central area slightly increased to USD 48 per sqm per month, while the central area maintained high rents ranging from USD 150 to 300 per sqm per month.
