Over 90pct of Hanoi’s retail space filled up

Vietnam Cushman & Wakefield Marketing and Real Estate Management Co has lately announced the results of the survey for retail space in Hanoi up to Q3 of 2010.

According to the results, by the end of Q3, Hanoi has put into operation eight trade centres, two whole-sales centres, three grand supermarket and 12 retail centres in the foundation parts of the current complexes and about 80 electronic supermarkets with total area of 374,000 square metres, of which 101,000 square metres were for trade centres.

Hanoi Grand Plaza was the sixth trade centre to be put into operation in Q3, supplying the markets with additional 16,000 square metres of retail space.

The filling-up ratio of retail space in Hanoi was estimated at 93 percent. In some large trade centres such as Trang Tien Plaza, Vincom City Towers and Vincom Galleries, the filling up ratio was nearly 100 percent.

The newly opened Grand Plaza Trade Centre had 90 percent of the total space occupied after two months in operation.

The average rental price fluctuated from $20-120 per square metre per month, depending on the location, and leasing terms. The rental prices tended to reduce in the higher floors.

Nguyen Thi Yen, a staff in the market survey department in Cushman & Wakefield Vietnam Co said that the shopping demands of young Vietnamese people in large cities remained high while the supplies o retail centres was limited, bringing the large opportunities for Hanoi’s retail markets.

In addition, the retail markets became more attractive for investors because of long-term investment method, instead of signing the leasing contracts for terms of 2-3 years previously.

Yen said that with the role of sole distributor for Keangnam Hanoi project, Cushman & Wakefield would offer long-term leasing contracts for 11,000 square metres of retail space, with terms of up to 40-50 years, and offered price of $10 per square metre, instead of up to $90-150 per square metres in case of short-term lease.

As for supplying sources in the coming quarter, the market will be supplemented with additional 33,000 square metres of retail space when Pico Trade Centre and Hang Da Market have been finished and put into operation. Therefore, there will be over one million square metres of retail space to be offered to the market from now up to 2013, three times higher than the current market supplies.

Some projects to be put into operation in the near future include Royal City (200,000 square metres), U-Silk City (146,896 square metres), Ciputra Hanoi Mall (120,000 square metres), Keangnam Hanoi Landmark Tower (62,786 square metres) and Savico Shopping Centre (60,000 square metres). – Vneconomy

Tags: Vietnam retail market, Vietnam retail spaces