SUPPLY: SATRA CONTINUES TO OPEN CENTER MALL BRAND IN DISTRICT 6
The beginning of 2025 saw Satra further expand its retail presence with the launch of a 15,000 sq m Centre Mall in District 6, following closely after the opening of Central Premium Mall in District 8. Consequently, the total retail supply in Ho Chi Minh City (HCMC) reached 1.2 million sq m, marking a 1.27% growth QoQ and an 11.43% increase YoY. Notably, new retail malls are consistently being introduced in districts outside the central areas, offering a wide array of business models. This trend is gradually transforming traditional street-front retail, which is under significant pressure from the growing e-commerce sector.
DEMAND: SIGNIFICANT IMPROVEMENT COMPARED TO THE SAME PERIOD LAST YEAR
The retail occupancy rate stood at 93.31%, marking a considerable improvement with a nearly 4% increase year-over-year and a 1.21% gain quarter-over-quarter. This growth underscores the sustained high demand for retail space in Ho Chi Minh City, even as supply shows signs of increasing. This strong demand is further evidenced by the continuous expansion of brand chains, notably Japanese retailers such as Uniqlo. Findings from a Japan External Trade Organization (JETRO) survey reveal that all surveyed Japanese retail businesses operating in Vietnam intend to expand within the next 1-2 years.
RENT: AVERAGE RENT INCREASED SMALLLY FROM PREVIOUS QUARTER
While the average rental price decreased by 4.43% year-over-year, it did register a marginal increase of 1.42% compared to the previous quarter, reaching $53.48 per sqm per month. This growth signals a slow but steady recovery in demand for retail space, primarily due to the limited supply of expansive shopping centers. Moreover, the changing dynamics of shopping and entertainment preferences towards mall environments have yielded positive shifts, notably seen in the increased popularity of shophouses within shopping centers, a stark contrast to their underperformance on streets outside the central business district.
OUTLOOK
Projections indicate that the Ho Chi Minh City retail market will see an influx of approximately 38,000 sq m of new retail space in 2025, followed by nearly 80,000 sq m in the subsequent two years. Despite this incoming supply, high-quality retail spaces in prime locations, which are in high demand from food, F&B, and entertainment businesses, will remain limited. This constrained supply results in fierce competition for available space and poses a notable challenge for major brands looking to grow their footprint in the HCMC market.
Learn more by download our most recent Ho Chi Minh City Retail MarketBeat.
