A confectionery aisle at the Aeon Supermarket in Hanoi. (Photo: VNA) Hanoi (VNA) - Retail space is set to be a cash cow for the property sector soon,particularly in Hanoi and Ho Chi Minh City.
Expertsfrom property consultant firm Savills Vietnam said despite closuresand fierce competition last year, the outlook for 2017 and beyond is rosy.
Conveniencestore chains that open round the clock are expected to thrive this year.
In additionto successful long-standing Thai investors, retailers from Japan, China and theRepublic of Korea are landing in the Vietnamese property market.
In Hanoi, sourcesof retail property are projected to concentrate in the downtown area and thewest between 2017 and 2018. A signal that bodes well for the sector is anincreasing number of newly registered enterprises, with the figure for 2016exceeding 22,000, up 19 percent year-on-year.
Savills’counterpart CBRE Vietnam highlightedtwo recently debuted projects in the capital, Vincom Pham Ngoc Thach shoppingmall and Vincom Plaza in north Tu Liem, adding 45,900 square metres of retail space tothe market.
Hanoi’sretail space now amounts to approximately 758,216 square metres, with a goodoccupancy rate.
The closureof poor performing shopping centres has boosted the occupancy rate. Due torestricted space in central Hanoi, a shift to suburban districts is on thecards. Retail space supply this year stands at about 106,000 square metres, allin the suburbs. Average leasing prices have fallen slightly, increasingcompetition.
Ho Chi MinhCity also has an active retail property market.
A CBRE studyfound that 17 international brands entered the southern hub last year, nearly triplingthe figure for 2015. Big brands, such as Zara, H&M and 7-eleven, are set toexpand.
In the nextthree years, the city expects to have 500,000 square metres of retail spaceleased, with shopping malls accounting for 75 percent of the supply.-VNA
VNA
