Commercial real estate firm Avison Young Vietnam presented its third-quarter report on the Vietnam real estate sector, spotlighting significant advancements across various segments with a consistent positive outlook.
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Foreign direct investment (FDI) in Vietnam’s real estate arena surged to almost USD4.4 billion in the first nine months of 2024, marking a 2.2-fold increase year-on-year.
Foreign stakeholders are actively seizing real estate opportunities by engaging in capital partnerships with developers, acquiring project shares, and pursuing mergers and acquisitions (M&A) to propel recovery efforts towards an anticipated growth phase by mid-next year.
According to Avison Young, Vietnam’s retail landscape is witnessing an upsurge in supply, particularly as luxury brands set their sights on central regions.
Both Hanoi and Ho Chi Minh City welcomed new shopping centres during the third quarter to inaugurate the festive shopping season.
In Ho Chi Minh City, the Vincom Mega Mall Grand Park in Thu Duc City and Parc Mall in District 8 commenced operations in late July and August, respectively.
The 55,000-square-metre Parc Mall achieved full occupancy upon debut, featuring the Aeon Ta Quang Buu supermarket.
Non-CBD occupancy rates surged by 5 percent to reach 81 percent. The city’s CBD continues to allure brands such as Longchamp, Lush, and Popmart, all unveiling new outlets in Saigon Centre.
Simultaneously, Hanoi’s retail real estate sector experienced a similar vibrancy, with the unveiling of Diamond Plaza Le Van Luong in Thanh Xuan district, a 14,800-square-metre shopping complex that opened its doors in early September.
Diamond Plaza attained 60 percent occupancy and features a fresh FujiMart supermarket branch.
Lotte Centre Hanoi also recently reopened following a year-long renovation. Throughout the market, both rental and occupancy rates sustained stability quarter-on-quarter, with the total retail space surpassing 1 million square metres, predominantly in shopping malls.
Last quarter also saw the launch of new projects such as Vincom Plaza Bac Giang, Go! Ha Nam, and Aeon Mall Hue.
The trajectory indicates a forthcoming surge in retail space supply until year-end, with imminent projects like Central Premium Mall in District 8, HCMC, Aeon Xuan Thuy in Cau Giay district, and Han Jardin in Bac Tu Liem district, Hanoi.
Additional forthcoming developments include Aeon Malls in Hai Duong, Bien Hoa (Dong Nai), Tan An (Long An), and MM Mega Market Da Nang.
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Competition among developers to secure market dominance, coupled with a diverse array of retail formats encompassing convenience stores, department stores, and supermarkets, underscores the indispensable nature of in-store shopping for the sustained growth of Vietnam’s retail real estate and retail sector.