Underground shops construction booms

Construction of underground works for retail trade has become a popular option for many investors in major cities.

In HCM City, the CT Group, the investor of the CT Plaza in Tan Binh District, built two storeys of the plaza underground, with a total area of 1,000sq. metres, in addition to another nine storeys above ground.

The two underground floors are used for eating and drinking activities, and are mostly occupied by restaurants and cafes owned by both Vietnamese and foreigners.

In late April, Vincom Centre with six underground storeys in District 1 opened. Three of its underground floors with a combined area of 57,704 sq.m are used for retail activities.

Le Khac Hiep, vice chairman of Vingroup, the owner of Vincom, said the centre was the country’s largest underground trade space.

The centre includes a supermarket, fashion shops, restaurants, cafes and entertainment areas. The majority of Vincom’s underground retail space was rented by companies such as Nike, Levi’s, Mango, La Senza, Charles&Keith and Highlands Coffee.

Meanwhile, many older trade centres’ underground floors are being transformed from parking to retail purposes.

The city government has received many proposals from companies that are asking for permission to use underground spaces under the city’s parks, such as Tao Dan and Le Van Tam, in order to build parking sites or trade centres.

Rental charges at underground trade centres are as expensive as those above ground. At the CT Plaza, the rental price of underground space is between US$20 and $21 per sqm/month. The rates in the Vincom Centre range between $35 and 230 per sqm/month.

Marc Townsend, general director of CBRE in Viet Nam, said space for retail trade activities along the city’s important roads had become scarce while demand was increasing. As a result, underground space was becoming more attractive to investors. — VNS

Tags: vietnam real estate market, Vietnam retail shop