Saigon retail space rent soars

The average rent in Saigon retail shopping malls last quarter was around US$50 per square meter per month, a year-on-year rise of 9.1%, according to Cushman & Wakefield.

Last year dozens of local and foreign brands in fashion, gastronomy, cosmetics, sports, and others came to the city and rented space in malls, the property consultancy said.

The Vietnam Association of Realtors said the average rent in the ground floors of malls in the central business district was some $130.

The occupancy rate in the CBD was nearly 96%. In malls outside the CBD they were around $40 and 88%.

According to the latest report by U.S. real estate consultancy JLL, the average net rent for retail space in the CBD rose by 3.1% and is expected to increase sharply in the next 12 months.

It is expected that by the end of this year, renovated retail shopping malls in the Saigon CBD will increase rent by 21.1% from the same period last year.

As international food and beverage and fast fashion brands are looking for opportunities to expand operations in the city, landlords could push rents up, the JLL report said.

Cao Thi Thanh Huong, research manager at Savills HCMC, said consumer spending remained high last year, a magnet for local and foreign brands.

She said the demand for consumer goods surged by 21% last year, and by 7% for F&B, and the trend is likely to continue this year.

Consumers tend to spend on healthcare and sports, and so brands in these industries are likely to rent more retail space in 2023, she added.

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