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./.
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./.
