Vietnam Real Estate Market Report: Uncovering Commercial and Retail Trends
According to the Vietnam Real Estate Brokers Association (VARS)’s Vietnam Real Estate Market Report for the first nine months of 2024, the total retail sales of goods and services consumption reached an estimated 4,703 trillion VND, an increase of 8.8% compared to the same period last year.
Total retail sales and consumption services revenue in Vietnam as of Q3 2024
During this period, the commercial and retail real estate supply was bolstered by the addition of approximately 71,000 sq. m of new retail space from Aeon Mall Hue (51,000 sq. m), Vincom Plaza Bac Giang (13,372 sq. m), and Aeon Mall Ta Quang Buu (7,000 sq. m). These new malls boasted high occupancy rates of around 90% upon their grand openings.
Commercial and retail real estate supply in Vietnam as of Q3 2024
This supply is expected to increase further as Aeon Mall Vietnam received a memorandum of understanding for researching and developing a commercial project in Bac Ninh province with a total expected investment of 190 million USD during the 2024-2025 period.
Meanwhile, Vincom Retail aims to expand its presence across Vietnam in 2024, with plans to open 6 new shopping malls, including 2 Vincom Mega Malls and 4 Vincom Plazas, adding approximately 171,000 sq. m of retail space. By the end of 2024, they aim to have a total of 89 malls across 48 provinces. Additionally, Vincom Retail is committed to constructing and developing the new-generation Vincom Mega Mall – a Life-Design Mall integrating shopping, dining, and entertainment experiences.
VARS also noted that the new malls are designed with a modern, “all-in-one” concept, integrating shopping, entertainment, art appreciation, and experiential activities, achieving impressive occupancy rates of 90% upon opening. In contrast, older malls have witnessed a slight increase in vacant retail spaces as demand shifts towards these new, exciting options.
A bustling shopping mall in Hanoi, Vietnam
“The premium commercial and retail real estate segment in centrally-governed cities is experiencing rapid growth compared to other ASEAN countries, with strong long-term growth potential,” the report emphasized.
Furthermore, VARS’ Q3 2024 report revealed that rental prices increased due to the introduction of high-quality new supply and the refurbishment of existing malls. Specifically, in Hanoi, rents outside the city center ranged from 40 to 70 USD/sq. m/month, a 3% quarterly increase, while rents in the central area reached 100-150 USD/sq. m/month. In Ho Chi Minh City, rents in peripheral areas rose slightly to 48 USD/sq. m/month, while the central area maintained high rents ranging from 150 to 300 USD/sq. m/month.
