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.
Total retail sales and consumption services in Vietnam as of Q3 2024
In terms of commercial and retail real estate, the market witnessed an 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.
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 during 2024-2025. This project is expected to attract a total 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 projected to operate 89 shopping centers in 48 provinces, showcasing their commitment to nationwide expansion. Additionally, they are focused on 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 shopping centers are built with a modern, “all-in-one” concept, integrating shopping, entertainment, art appreciation, and experiential activities. These malls achieved impressive occupancy rates of up to 90% upon opening, while older malls experienced a slight increase in vacant retail spaces as demand shifted towards the newer options.
A modern shopping center in Hanoi, Vietnam
“The premium commercial 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, the VARS Q3 2024 report indicated an increase in rental prices due to the introduction of high-quality new supply and the renovation of existing malls. In Hanoi, rental prices outside the city center ranged from USD 40 to 70 per sqm per month, marking a 3% quarterly increase. In contrast, rental prices in the city center 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 the city center maintained its high rental rates, ranging from USD 150 to 300 per sqm per month.
