- News in Vietnam
- 11 March 2022
Premise for rent in Ho Chi Minh city quickly returning
A specialist in real estate sector has said that many domestic and foreign retail brands have continuously launched new stores with large scale in areas of up to thousands of square meters in HCMC.
Those activities promise to resume and revive the retail market. The demand for store expansion of brands is still quietly on the go leading to a more active rental market of commercial real estate.
Currently, premises in the central district or large and famous commercial centers are the most sought after due to their various advantages in size, reputation of the investor and a stable loyal customer base.
The recently published report of a specialist group on the retail market assesses that Vietnam and China are the two countries achieving the fastest recovery in the retail market in big cities.
The rent in major markets like Singapore, Hong Kong, Seoul, and Tokyo continues to decline sharply in the last 6 months of 2021 while the cities of Beijing, Shanghai, Hanoi, and Ho Chi Minh still maintain their growth of about 0.5-13%.
According to a representative of the leasing department of a retail chain in Ho Chi Minh City, currently in the city there are many premises for investors to choose with a rent reduction by 10-15% compared to pre-pandemic, however such premises with large area, nice location and suitable rent at this time are hard to” close a deal”.
Mr. Pham Thai Binh – General Director of Hung Thinh Retail Joint Stock Company – said that in order to support businesses to rent premises in commercial centers when the market has not recovered evenly, investors can extend the payment term to support enterprises financially or can convert to revenue sharing as performed by other countries around the world
According to Mr. Binh, with regard to form of revenue sharing, the tenants will share 10-25% of the revenue depending on the business item with the investor instead of paying 100% of the rent. Currently, a number of commercial centers in Ho Chi Minh City is applying such form.
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