The retail property segment in the two major cities of Hanoi and Ho ChiMinh City saw recovery in occupancy but not in rent, Savills Vietnamsaid.
In its quarterly report on the two cities, theconsulting firm said in Hanoi, the occupancy was 84 percent, stablequarter-on-quarter (q-o-q) and up 7.2 percentage points year-on-year(y-o-y). Meanwhile, the average rent was 841,000 VND (38.7 USD) per sq.mper month, decreasing 0.9 percent q-o-q and 10 percent y-o-y.
In the first half of 2015, Hanoi's retail sales were approximately 210trillion VND (9.63 billion USD), increasing 10.3 percent y-o-y.
Without inflation, the real growth rate was 9.6 percent y-o-y. Withfree-trade agreement participation and the expected signing of theTrans-Pacific Partnership in 2015, the competition between domestic andforeign retailers would continue, Savills Vietnam said.
In the second quarter, Hanoi's retail supply was approximately 950,000sq.m, increasing by 3 percent y-o-y.
In the second half of this year, approximately 353,000sq.m from 16projects will enter the market. Two notable projects are Vincom NguyenChi Thanh and Aeon Mall Long Bien, which will provide more than165,000sq.m.
Meanwhile, the retail property segment in HCMCity showed positive signs in the year's second quarter, with averageoccupancy rising by seven percentage points to reach 92 percent, SavillsVietnam said.
The average rent decreased by one percent q-o-qto touch 1.3 million VND (59 USD) per square metre per month. Shoppingmalls and department stores' occupancy rates have been stable since theprevious quarter at 92 percent and 97 percent, respectively.
The rent for department stores increased by three percent year-on-year,but decreased by two percent in shopping centres and retail podiums.
In the first half of the year, HCM City retail sales increased by11.8 percent y-o-y to touch 256 trillion VND (11.75 billion USD),significantly higher than the 7.7 percent rate a year earlier and higherthan the national figure of 10.2 percent.
The growing population and middle class in HCM City are driving the growth in retail demand.
In Q2, two new shopping malls and one new supermarket entered themarket, increasing the total retail stock by five percent q-o-q to reach940,000sq.m.
The retail market is expected to expand fasterin secondary and suburban areas than in the central business districtdue to upgrades in infrastructure and new residential projects.
According to the second report in the series, Asia Pacific ConsumerSurvey - How We Like to Shop Online, released last week by CBRE, onlineshopping has overtaken bricks-and-mortar retail as the most popularmethod of purchase in certain Asian markets.
Consumers in the18-24 age group — known as ‘Generation Z' — are also set to play aninfluential role in the regional retail market in the coming years. As aresult of factors such as these, landlords and retailers would need tobe proactive in order to remain competitive, the survey reported.
The ability to compare products without having to physically visitindividual stores is another key factor for the region's consumers whenshopping online. This trend is more prominent in emerging markets suchas Vietnam, China and India, where quality shopping centres or shops areoften located far from each other.-VNA
In its quarterly report on the two cities, theconsulting firm said in Hanoi, the occupancy was 84 percent, stablequarter-on-quarter (q-o-q) and up 7.2 percentage points year-on-year(y-o-y). Meanwhile, the average rent was 841,000 VND (38.7 USD) per sq.mper month, decreasing 0.9 percent q-o-q and 10 percent y-o-y.
In the first half of 2015, Hanoi's retail sales were approximately 210trillion VND (9.63 billion USD), increasing 10.3 percent y-o-y.
Without inflation, the real growth rate was 9.6 percent y-o-y. Withfree-trade agreement participation and the expected signing of theTrans-Pacific Partnership in 2015, the competition between domestic andforeign retailers would continue, Savills Vietnam said.
In the second quarter, Hanoi's retail supply was approximately 950,000sq.m, increasing by 3 percent y-o-y.
In the second half of this year, approximately 353,000sq.m from 16projects will enter the market. Two notable projects are Vincom NguyenChi Thanh and Aeon Mall Long Bien, which will provide more than165,000sq.m.
Meanwhile, the retail property segment in HCMCity showed positive signs in the year's second quarter, with averageoccupancy rising by seven percentage points to reach 92 percent, SavillsVietnam said.
The average rent decreased by one percent q-o-qto touch 1.3 million VND (59 USD) per square metre per month. Shoppingmalls and department stores' occupancy rates have been stable since theprevious quarter at 92 percent and 97 percent, respectively.
The rent for department stores increased by three percent year-on-year,but decreased by two percent in shopping centres and retail podiums.
In the first half of the year, HCM City retail sales increased by11.8 percent y-o-y to touch 256 trillion VND (11.75 billion USD),significantly higher than the 7.7 percent rate a year earlier and higherthan the national figure of 10.2 percent.
The growing population and middle class in HCM City are driving the growth in retail demand.
In Q2, two new shopping malls and one new supermarket entered themarket, increasing the total retail stock by five percent q-o-q to reach940,000sq.m.
The retail market is expected to expand fasterin secondary and suburban areas than in the central business districtdue to upgrades in infrastructure and new residential projects.
According to the second report in the series, Asia Pacific ConsumerSurvey - How We Like to Shop Online, released last week by CBRE, onlineshopping has overtaken bricks-and-mortar retail as the most popularmethod of purchase in certain Asian markets.
Consumers in the18-24 age group — known as ‘Generation Z' — are also set to play aninfluential role in the regional retail market in the coming years. As aresult of factors such as these, landlords and retailers would need tobe proactive in order to remain competitive, the survey reported.
The ability to compare products without having to physically visitindividual stores is another key factor for the region's consumers whenshopping online. This trend is more prominent in emerging markets suchas Vietnam, China and India, where quality shopping centres or shops areoften located far from each other.-VNA
