Demand for retail space in Vietnam's
large cities is expected to soar in 2010 after the country officially
opened the door to international retailers and agreed to abide by WTO
commitments.
More international retailers, brands
and franchises would be present in Vietnam this year, said CB Richard
Ellis Co Vietnam (CBRE), a real estate consulting firm. In recent
months, international brands have scrambled to secure scarce retail
space in downtown commercial centres while restaurant chains are being
opened on major streets nationwide.
International consulting group AT Kearney said that Vietnam 's sixth
position in worldwide trade growth last year had placed the country on
the map as an attractive destination for international distributors.
A preference among consumers to shop at modern shopping centres rather
than traditional markets was another factor contributing to demand.
The CBRE said average occupancy rates in HCM City and Hanoi 's retail
spaces now stood at 95 and 83 per cent, respectively. With the rising
demand for retail space, prices have been forecast to continue climbing
in 2010.
Average rental prices for retail space in Hanoi and HCM City currently
stand between 60 USD and 100 per square metre per month. In central
business districts, rents have even risen to 250 USD per square metre
per month.
In HCM City 's Vincom Centre, rents now average 200 USD per square
metre per month and 80 per cent of available retail space has already
been leased, even though the centre is not due to open until the end of
April.
According to Savills Vietnam , a real estate consulting firm, Hanoi 's
retail space will grow to reach 1 million square metre over the next
two years, more than double its current supply. The projected growth
has been attributed to completion of major projects such as the Hang
Da, Mo and Nga Tu So markets, and the Grand Plaza and Sky City Tower .
Meanwhile in HCM City a further 740,000sq.m of retail space will be
developed over the next three years, doubling current supply./.