While most segments of the HCMC real estate market were struggling to seek tenants and stabilize occupancy, the retail space segment did better business last year, CB Richard Ellis Vietnam (CBRE) said in a report released last week.
There was an extra retail space supply of 78,000 square meters in the final months of 2012, with 38,000 square meters at the Vincom Center A project in the heart of the city and 40,000 square meters at the Pandora City project in Tan Phu District.
The two projects report high occupancy rates, with the Vincom Center A having 95% and the Pandora City project gaining 80%.
Numerous high-end brands including Banana Republic, Hermes, Christian Dior, Sisley, Ermenegildo Zegna and Rauph Lauren, are foraying into the domestic market for the first time, making the retail space segment busier.
Similarly, fast-food joints like Subways, Burger King, Lotteria and KFC are rushing to win larger slices of the pie while Starbucks, McDonalds and 7-Eleven will enter the nation some time this year.
The average offered rent on the market are on the rise thanks to the high offered price at the Vincom Center A, at some VND2.7 million, or US$135 a square meter.
The total area that found tenants in the fourth quarter last year was nearly 58,000 square meters, up four times against the preceding quarter, according to CBRE.
The Saigon Times Daily