HANOI RETAIL SEPTEMBER 2018
MARKETBEATS
0.8% 7.2% 839,200 sq.m
RENTAL GROW TH VACANCY RATE PLANNED & UNDER
(YOY) CONSTRUCTION
ECONOMIC INDICATORS
HIGHLIGHTS Inflation (CPI)
8M 17
3.84%
8M 18
3.52%
12-month
Forecast
Stable economic development FDI (bil. US$) 23.40 24.35
Impressive GDP growth in 1H 2018 at 7.1% - the highest 1H results since 2011 expects Trade balance
(bil. US$) (2.13) 2.80
a positive growth for the whole year. Economic development is driven by sustained
Source: General Statistics Office
foreign investment attraction, growing manufacturing sector, improved business
environment, more economic integration and stable macro conditions. Besides, Vietnam AVERAGE RENT AND VACANCY RATE
1,000 20%
is also affected by challenges from the global economy such as US$ appreciation, rising
900
prices of basic commodities and energy, US – China trade war, etc. 10%
800
Improved market performance 700 0%
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
One new retail outlet came into operation in Q3 2018, resulting in an increase by 0.7%
Average Rent (Thou.VND/sq.m/mo.) Vacancy Rate
quarter-on-quarter (QoQ) and 8.1% year-on-year (YoY) in total retail stock, to reach
more than 1.07 million sq.m as of Q3 2018. Source: Cushman & Wakefield Vietnam – Research & Consultancy
Market performance continued to show improvement with overall vacancy dropped 1.7 SUPPLY PIPELINE
ppts QoQ and 2.5 ppts YoY. Total absorption in the quarter mainly came from recent 400
Thousands sq.m
A Cushman & W akefield new projects.
Research Publication 300
Slightly increasing rents 200
DATA 100
Average asking rent showed a modest increase by 2.4% QoQ and 0.8% YoY, mainly due
INTO 0
ACTION to higher rental rates quoted by projects with improved performance besides higher 2018 2019 2020 Onwards
exchange rate. Retail space in the CBD was priced at more than double the average rent Source: Cushman & Wakefield Vietnam – Research & Consultancy
www.cushmanwakefield.com of the Secondary and three to four times of those in the West and Suburban submarkets.
HANOI RETAIL
MARKETBEATS SEPTEMBER 2018
PHUOC VO INVENTORY VACANCY
PLANNED & UNDER AVERAGE ASKING RENT
Director SUBMARKET (SQ.M) RATE
CONSTRUCTION
Valuation & Research (SQ.M) VND/SQ.M/MO US$/SQ.M/MO EUR/SQ.M/MO
Room 16, Level 14, Vincom Centre
72 Le Thanh Ton, District 1, HCMC HANOI TOTAL 1,073,100 7.2% 839,200 VND902,000 US$38.8 € 33.3
Tel: +84 8 3823 7968 ─ €60.1
Department Store 18,000 0.0% VND1.626.000 US$70.0
Fax: +84 8 3823 7969
Shopping Center 968,400 7.8% 663,800 VND899.000 US$38.7 €33.2
[email protected] Retail Podium 86,700 1.2% 175,400 VND778,000 US$33.5 €28.7
^All rents are inclusive of SC but exclusive of VAT
US$/VND = 23,225; US$/EUR = 0.858 as at 14 Sep 2018
SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION
PROPERTY SUBMARKET MAJOR TENANT SQ.M COMPLETION DATE
Discovery Complex West N/A 25,000 2018
FLC Twin Tower West N/A 18,750 2019
D’Capitale West N/A 120,250 2019
Aeon Ha Dong Suburban N/A 130,000 2019
Ciputra Hanoi Mall Secondary N/A 110,000 2020
DATA
INTO
ACTION
A Cushman & W akefield
Research Publication
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Copyright © 2018 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
