HCM City's average rental
of retail space and occupancy rate is forecast to see further decline for 2012,
according to Colliers International.
HCM City: pressure on
rental and occupancy rate
The
total supply of retail space as of quarter 1 2012 is estimated at 646,000 square
metre, up a 7 percent year-on-year, 87 percent of which is found in District 1
and District 7 thanks to convenient location and developed infrastructure.
Rental
of retail space averaged at US$70.6 per square metre excluding service fees and
value added tax in quarter 1, down 4pct year-on-year.
Average
occupancy rate reached 90.3 percent, down 3.9 percent year-on-year. The highest
percentage is found at general stores with 97 percent, followed by commercial
centres and retail areas with 88 percent and 86 percent respectively.
The
supply is projected at 1.27 million square metre with many large-scale projects
such as Saigon One, Eden A, Pico Sai-gon Plaza, Kenton, Saigon M&C, Riviera
Point.
Abundant
potential supply accompanied by soaring inflation and monetary tightening would
take a heavy toll on demand for retail space, probably pushing average
occupancy rate and rental down further for 2012.
Buildings
in the city centre like Caravelle, New World, Opera View, Rex Arcade and
Sheraton Saigon have seen occupancy rate reaching 100 percent and average
rental staying at US$110 per square metre.
HCM
City is forecast to offer huge potential for retail development thanks to young
population, rapid urbanisation and increasing income.
Hanoi: ample supply
to come in three years' time
No
new supply has been recorded in the first quarter of this year resulting in
slight fluctuations in rental and occupancy rate. Yet, three coming years could
see remarkable difficulties due to plentiful potential supply particularly in
the west of the city.
The
total supply of retail space remains at 433,700 square metre, of which 51.7
percent are shopping centres, 14.4 percent are general stores and 30.6 percent
wholesale supermarkets.
New
retail space projects have been found in the suburbs which are estimated to
provide 72 percent of the total retail space supply.
Average
rental is reported to fall 2.3pct over the previous quarter largely due to
rental relaxing at shopping centres. The price in central areas has hardly seen
any change due to nearly full occupancy. Shopping centres in the outer of the
city such as The Garden,
Ha
Thanh Plaza and Syrenxa have experienced an average rental decline of 3.34
percent.
Average
occupancy rate at shopping centres reached 91.1 percent, down 1 percent over
the last quarter due to the withdrawal of large tenants such as Pico Digital
leaving Pico Mall, MTTC Deccor leaving The Garden, FAHASA book store leaving Ha
Thanh Plaza.
The
west area is expected to the shopping destination in three years to come and
Thanh Xuan and Ha Dong District alone could provide 31.7 percent of the city's
total supply.
In
all likelihood, many investors could face some delay in bringing out products
onto the market due to capital difficulties and low occupancy rate, predicted
Colliers International.
VietBiz24
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