Retail commercial real estate is still on the growth path
According to data from the General Statistics Office, total retail sales of goods and consumer service revenue in December 2023 is estimated to reach 565.8 trillion VND, up 2.6% over the previous month and up 9.3% over the past month. with the same period last year.
Of which, retail sales of goods in 2023 is estimated to reach 4,858.6 trillion VND, accounting for 78% of the total and an increase of 8.6% compared to the previous year. Revenue from accommodation and food services in 2023 is estimated to reach 673.5 trillion VND, accounting for 10.8% of the total and increasing 14.7% compared to the previous year. Accordingly, the retail – consumer services market still has many positive signals in the context of the economy still facing many difficulties.
Research by the Vietnam Association of Real Estate Brokers (VARS), total retail sales of goods and consumer service revenue in 2023 will recover positively, estimated to reach 6,231.8 thousand VND, an increase of 9.6% compared to the previous year. last year.
The retail and commercial real estate segment is still growing. Photo: Gia Linh
Demand for retail commercial space rental continues to increase. The occupancy rate of business premises in shopping centers and commercial blocks exceeds 90%.
The retail commercial real estate market in 2023 will be exciting with new supply and development plans of leading retail corporations to expand and open new stores with an area of thousands of square meters, such as Uniqlo, Muji…..
Mr. Nguyen Van Dinh – Chairman of VARS said that in contrast to the retail commercial segment, townhouse rentals are sluggish, facing a widespread wave of land leases due to high prices, economic difficulties, and business activities. Business is ineffective in the context of e-commerce ascending to the throne with technology platforms with smart algorithms that attract young people. The number of store owners paying for retail space has increased, but they are mainly small fashion brands, which do not greatly affect the occupancy rate of the entire market.
Retail real estate rental prices will continue to increase
Experts assess that Vietnam’s retail commercial real estate market is still very attractive with a lot of room and development potential. The market size will continue to increase with the increase in domestic consumption with half of the population in working age, rapid urbanization rate, high population density…
Vietnam’s retail commercial real estate market is still very attractive to investors. Photo: Gia Linh
The huge demand for retail, especially from the rapidly growing middle class and super-rich, is an opportunity to enter the market, an ideal destination for international brands, from fast fashion to the retail segment. Luxury retail has a very small presence compared to other countries in the region.
In 2023, rental prices in the suburban area increased slightly, reaching 40 USD/m2/month. The central area still maintains high rental prices, about 140 USD/m2/month. The level of competition in the retail trade segment is increasing as many retail brands with strong financial potential continuously expand and open a series of new shopping centers and hypermarkets. To survive, investors of shopping centers are forced to race to renovate and upgrade outdated shopping centers.
Experts predict that rental prices are expected to increase continuously along with the need for presence and expansion of international brands in the context of limited high-quality commercial space. Compared to other countries, shopping center rental prices in Vietnam are still very competitive.
The trend of combining shopping and entertainment is attracting consumers’ attention. Photo: Gia Linh
In addition, Dat Xanh Services Economic – Financial – Real Estate Research Institute (DXS-FERI) assesses that in 2023, the operating capacity of retail space for rent will be stable, maintained at a low level. 90% for Ho Chi Minh City market. Most landlords in central areas are still confident with stable high rents at 53 USD/m2/month in Ho Chi Minh City. Rents in non-central areas also increased slightly by 1% quarter-on-quarter to 1 million VND/m2/month.
Notably, the Shoppertainment trend – a combination of the two elements “shopper” (shopping, shoppers) and entertainment (entertainment) has emerged as a new wave in the retail industry in big cities like Ho Chi Minh City. This is a sophisticated combination of shopping and entertainment experiences that is attracting consumers’ attention.
In addition, the emergence of a series of large-scale Retail Centers with the “Park & Buy” model – where people can not only shop, but also experience entertainment and culinary services, is gradually becoming a reality. popular trend.