Foreign shops driving rent up hinh anh 1Nguyen Hue street in downtown HCM City. (Photo: thanhnien)

HCM City (VNA) - More foreign shops such as France-based Auchan and US-based 7-Eleven convenience stores will lead to competition for rental spaces, particularly in downtown HCM City, according to a new report.

“Good positions downtown will play a very important role in attracting customers, and we see the price for rent increasing after Lunar New Year,” Vo Thi Phuong Mai, Cushman & Wakefield’s retail service manager, was quoted as saying in Dau Tu (Vietnam Investment Review) newspaper.

According to a recent survey conducted by CBRE Vietnam, after the Lunar New Year or Tet, the retail sector is expected to grow and demand for rental positions will increase.

Prices have risen from 10-15 percent compared to the period before Tet.

Well-known fast-food and coffee brand names like McDonald’s, KFC, Starbucks, Trung Nguyen, Phuc Long, Kichi Kichi, Seoul Garden and Mon Ngon are expanding their businesses and have created pressure in the rental space, the report said.

Within a radius of 15km from downtown, prime spots for renting will become scarce, especially on major streets and the ground floors of high-rise buildings for 50-500 sq.m of rental space.

The report also said that many spaces inside trade centres remained empty because investors were waiting to rent spaces on major streets.

To meet the demand, real estate investors will offer more ground-floor spaces in high-rise buildings this year.-VNA