7/30/2019 Hcmc Retail 4q08
1/1
This repor t contains information available to the public and
has been relied upon by Cushman &Wakefield on the basis that it
is accurate and complete. Cushman & Wakefield accepts
noresponsibility if this should prove not to be the case. No
warranty or representation, express orimplied, is made to the
accuracy or completeness of the information contained herein, and
same issubmitted subject to errors, omissions, change of price,
rental or other conditions, withdrawalwithout notice, and to any
special listing conditions imposed by our principals.
2008 Cushman & Wakefield, Inc. All rights reserved.
For industry-leading intelligence to support yourreal estate and
business decisions, go to Cushman& Wakefields Knowledge Center
atwww.cushmanwakefield.com/knowledge
For further information, please contactToby Dodd, General
Manager, Vietnam
Tel: +(84) 8 2914 707E-mail:
[email protected]
HCMC RETAIL REP ORT
4Q08
Retail Market Overview
Vietnam was ranked as the most attractive emerging
marketdestination for retail investment in 2008, according to
A.T.Kearneys annual Global Retail Development Index. Ho ChiMinh
City has seen demand for retail space outstrippingsupply. This has
caused an increase in rental rates in theprime locations and has
boosted the level of leasing activities.Occupancy rates in the
primary locations are high and are setto remain high into 2009.
Vietnam's membership to the WTO will open up the sectorto 100%
owned foreign retailers from 1st January 2009.Meanwhile, there is
scarcity of available space to meet the
large demand from retailers. Asking rents of some majorprojects
has been pushed to a new high compared with thesame period last
year.
Despite the pressure of inflation in 2008, the total retail
salesincreased by 30.9% during 11 months to November 2008,according
to a Report of the General Statistic Office.
New Supply
Our research shows that new retail completions in 2008totalled
approximately 38,882 sq m, including Alta Plaza(Tan Binh District);
Lotte Mart (District 7) and Now Zone(District 1). Another 146,598
sq m of new retail supply isscheduled to enter the market in 2009,
subject to completion.
Current Stock
Ho Chi Minh City currently has 162,196 sq m of retail spacestock
in 2008, which is insufficient to meet increasingdemand. Lotte Mart
and Now Zone were launched in midDecember providing 32,882 sq m of
new retail space. Primestreets such as Dong Khoi and Le Loi are
increasinglydominated by international brands like Versace, Gosto,
CKetc, while local retailers move out to secondary locations.
Vietnam retail outlook in 2009
As a result of the recent global slow down, we have
seenconsumers gradually tight the expenditure towards the end ofthe
year 2008. The General Statistic Office has released data
indicating that consumer spending slightly increased by
6.2%which is low rate of growth compared to the same period
ofprevious year which came in at 10%. We expect the Vietnamretail
sector space demand to slow in 2009 as internationalretailers slow
down their expansion plans to focus on theircore markets in the
current economic climate.
ECONOMIC INDICATORS
LATEST RELEASE 2007 2006
Real GDP Growth 4Q08 F 8.2% 8.5% 8.2%
CPI Growth Nov.08 20.71% 12.6% 6.6%
Retail Sales 4Q08 30.9% 22.8% 20.2%
Household Income 4Q08 F$1000 $833 $720
Unemployment 2Q08 5.1% 5.8% 6.06%
Source: Vietnam General Statistics Office
LOCATIONRENT
/SQM/MTHSHORT TERM
LOWER UPPER TREND
CBD 50 290
Airport 30 90
Airport link 30 90
Chinatown 15 90
Racecourse 16 60
Van Thanh 15 50
Phu My Hung 15 60
Source: Cushman & Wakefield ResearchNotes:1.* Net rent is on
a net floor area basis and excludes outgoings such as management
fee and VAT etc.2.* Asking rents are based on ground floor in prime
locations in major shopping centers.3. The exchange rate: USD 1 =
VND 16,500
MAJOR NEW SUPPLY IN THE NEXT 6 MONTHS
PROJECT NAME LOCATION TYPEGFA
(SQ M)DATE OF
OPENING
Saigon ParagonPhu MyHung
ShoppingCentre
8,000 1Q09
Asiana Pl aza CBDShopping
Centre6,680 1Q09
Saigon Pearl Phase 1 Ruby Apa rtmen t
Van ThanhShopping
Centre2,700 1Q09
Lotte DepartmentStore - Everich
RacecourseDepartment
Store22,000 3Q09
C.T Plaza Le ThanhTon
CBDDepartment
Store12,402 4Q09
Source: Cushman & Wakefield Research
HIGHLIGHTED PROPERTIES
LOTTE MART
Address: 469 Nguyen Huu Tho street
Location District 7
Opening Date: 18th Dec 2008
Total Retail Area: 21,000
Asking rent (US$/ sqm) 15-35
NOW ZONE
Address: 235 Nguyen Van Cu street
Location District 1, CBD Fringe
Opening Date: 4th Dec 2008
Total Retail Area: 11,882
Asking rent (US$/ sqm) 50-90
