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Demand for retail real estate increases

According to the Vietnam Association of Realtors (VARS), in the past 3 years, while the supply retail real estate slow growth, the demand of brands, big and small brands are constantly recovering after the epidemic. Retail real estate rental rates, especially in commercial centers in big cities, are forecasted to grow significantly in the coming time.

Demand for retail real estate increases - Photo 1.

Vietnam’s retail market is gradually recovering. (Illustration image – Photo: Investment Newspaper)

According to VARS, in Ho Chi Minh City, the rental price of premises is expected to grow by 1.5-3.5% next year. In Hanoi, because the impact of the epidemic is not really clear, the rental price increase is forecasted to be lower, at about 1-1.5%.

Along with that, Vietnam’s retail market is gradually recovering, promising a positive future for retail real estate, especially in big cities.

Recently, a famous fashion retail brand from Japan has just opened a new store in the center of District 1, Ho Chi Minh City with an area of ​​more than 3,000 m2.2. These signals clearly show the signs of recovery of Vietnam’s retail industry after a long time of being “frozen” due to the impact of the COVID-19 pandemic.

Experts also said that retail is currently one of the most dynamic economic sectors in Vietnam, maintaining a double-digit annual growth rate for decades.

In April 2022, Vietnam’s total retail sales increased by 12.1% over the same period in 2021 and this is a positive result compared to a decrease of 3.8% in 2021 due to the impact of the epidemic.

In fact, the rise of Vietnam’s retail industry after the pandemic comes not only from the growth in average income, as well as the disposable income of people, but also in the shift of shopping habits.

Shopping now not only meets the needs of food, clothing, and consumption, but also represents the need for experience, especially after a long time travel has been pent-up due to regulations on disease prevention.

All these factors have created a good opportunity for the retail real estate sector to gain momentum. People will be able to meet the needs of consumers’ experience – something that e-commerce and other forms of online shopping cannot meet.

Seizing the opportunity, many famous retail brands in the world also did not miss the opportunity to recover the retail industry and quickly grasp the market, when the new rental price started to increase slightly to choose a good premises. for a long-term strategy in the Vietnamese market.

In the Hanoi market, the rent for the first floor in the first quarter of 2022 increased by about 5% compared to the previous quarter with stable occupancy. Ho Chi Minh City is similar with large tenants leading the market demand.

In a survey at the end of 2021 organized by CBRE on the need to open stores of major brands in Asia in 2022, up to 65% of brands surveyed said there was a need to open more stores. customers, 50% said they want to find better locations.

Along with that, more than half of the brands surveyed said they want to find shopping centers in the city centers to open stores, 48% said they have a need to find locations on main roads.

Besides, the food and beverage, convenience stores and pharmaceutical industries are also forecast to have strong growth potential due to the expansion plans of brands in this field and the demand for consumer experiences.

Real estate prices continue to rise Real estate prices continue to rise – The report of the Ministry of Construction on the real estate market shows that, in the first quarter of 2022, the average real estate transaction price of the whole market is always in an uptrend.

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