Hanoi: Retail space for lease records best results in five years

12:00 | 12/10/2017

Retail space for lease in Hanoi has recorded the best occupancy rate and rental prices in the last five years, according to Savills Vietnam.

The property consultancy said at a press conference on October 11 that the average occupancy rate has hit a five-year high – 95 percent, up 11 percent year on year. Rental prices of retail space have increased by about 7 USD per square metre to some 45 USD per square metre.

Notably, all retail space for lease in the inner district of Hoan Kiem has been occupied. Other downtown districts like Hai Ba Trung, Dong Da and Tay Ho also reported improvement in both rental prices and occupancy rates.

Do Thu Hang, Deputy Director of Savills Hanoi’s research division, said the 8.1-percent rise in retail sales revenue has helped boost retail space occupancy. Meanwhile, personal consumption in Vietnam is forecast to keep growing at a fast pace compared to other regional countries. Inflation at below 5 percent is also a good sign for the retail market.

These factors have strongly supported the retail market, helping to augment occupancy to an ideal rate, she added.

Property experts said Vietnam’s consumer confidence index has also reached a high level compared to the last five years, showing a bright prospect of the retail market as well as local consumers’ readiness to spend and optimism about their financial capacity. These are favourable factors for the retail space for lease market to continue flourishing.

VNA