How is the retail real estate market recovering after Covid 19?

05/27/2023Featured news

Looking back at the retail real estate market in 2022, supply in Hanoi grew to 1,070,239 m2 NLA when two new projects, Vincom Mega Mall Smart City and The Zei, increased the area of supply by more than 54,500 m2 NLA. Ho Chi Minh City is also no less competitive when the supply also grows to 1,096,628 m2 NLA when there is a new project, Thiso Mall, increased the area of supply by more than 35,000 m2 NLA.

The rental price in Hanoi is 144 USD/m2/month (up 36.3%) for projects in the center and 27 USD/m2/month (up 12.5%) for projects outside the center compared to the same period last year. In prime real estate areas, the rental price can be up to 200 - 300 USD.


 


Ho Chi Minh City has higher rental prices than Hanoi when the asking rent for central areas is about 224 USD/m2/month (up 44.9%) and 40 USD/m2/month (up 21.3%) for non-CBD areas. Rental prices in prime areas range from 250 - 350 USD.

The psychology of retailers has changed more positively with 51% of survey participants feeling that sales in the second quarter of 2022 were very positive (17%) and more positive (34%) in the same period of 2019 (before the Covid epidemic). 72% of retailers forecast that sales revenue in 2023 will increase significantly (21%) and increase relatively (51%) compared to 2022.

In addition to the movements in supply, price and forecasts of retailers, potential opportunities in 2023 from brands are also a bright spot in the retail real estate market when the market shows signs of gradually recovering after the Covid-19 epidemic.

Cre: 2023 Real Estate Market Outlook - CBRE

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