Retail space expected to boom in coming three years

The retail space is predicted to boom in the next few years, with an increase of three times higher than the total areas available in the market at present.

According to the survey conducted by CBRE Vietnam Co, the total area of retail space in Hanoi and HCM City has doubled in the past three years. On the basic of statistics provided by the current in-progress and upcoming projects, the total supplies of retail space are supposed to increase significantly in the coming years. By 2013, the retail space in HCM City may reach 1.3 million square metres and in Hanoi of approximately 1 million square metres.

From now up to 2013, the HCM City’s total retail space would achieve over 1.033 million square metres, increasing by about 1 million square metres. The city planned to put into operation many trade centre in the coming years such as Sunrise City in Dist 7 with total area of 70,000 square metres, Bitexco Financial Tower in Dist 11 of 11,000 square metres, Roya Gaden in Dist 7 of 22,000 square metres, The Crescent in Dist 7 of 44,000 square metres, Tan Phong Shopping Complex in Dist 7of 72,000 square metres, Saigon M&C Tower in Dist 1 of 23,000 square metres, Metropolis in Dist 2 of 140,000 square metres, Platinum Plaza in Binh Chanh Dist of 140,000 square metres.

There were over 40,000 square metres in Hanoi and HCM City at present, of which the supplies in HCM City were three times higher than in Hanoi. In HCM City, by July 2010, the total retail space reached 317,665 square metres, with 24 trade centres of 98,840 square metres and 218,825 square metres of shopping centres. The rental prices retained at high level in markets at $97-124 per square metre per month for convenient locations on the first floor or ground floor of trade centres or shopping centres. Especially in the downtown of HCM City, the rental may reach $250 per square metre per month.

Similarly, by the end of July, the supplies of retail space in Hanoi have surged by 13.14 percent over the same period of last year, and twice as much as that of three years ago. At present, Hanoi has about 11,000 square metres of retail area in general department stores; 86,266 square metres of trade centres, and 10,310 square metres of shopping area. In the coming three years, there were additional 1 million square metres of retail space to be put into operation in the capital city. – TBKTVN

Tags: Vietnam retail market, Vietnam retail spaces

Posted by VBN on Sep 6 2010. Filed under Real Estate, Retail. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry