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 their grand openings.
Fig 2. Commercial and retail real estate supply in Q3 2024
The supply of retail space is expected to increase further as Aeon Mall Vietnam received a memorandum of understanding for developing a new commercial project in Bac Ninh province, with a total expected investment of USD 190 million.
On the other hand, 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 about 171,000 sqm of retail space. By the end of 2024, Vincom Retail is projected to have 89 shopping centers across 48 provinces.
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 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 premium commercial and retail real estate segment in centrally-governed cities is experiencing rapid growth compared to other countries in the ASEAN region, with strong potential for long-term growth,” the report stated.
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, a 3% increase quarterly. In contrast, rental prices in the city center ranged from USD 100 to 150 per sqm per month.
Ho Chi Minh City also witnessed 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.
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