Retail real estate showing promise
Vietnam’s retail market is now recovering and offering flow-on effects to real estate as businesses try to secure leases before rents rise.
Retail real estate stocks to benefit from rising rentals
Vietnam’s economy is clearly recovering and gross regional domestic product (GRDP) and retail sales are both increasing around the country. According to the General Statistics Office, the total retail sales of consumer goods and services in the first quarter rose 4.4 per cent year-on-year. The business expansion plans of some retailers will also make the market more active, opening up opportunities for retail real estate stocks to break out.
Retail real estate in HCMC still struggling
Retail real estate in Ho Chi Minh City has been unable to recover quickly as purchasing power remains weak and many businesses have closed or are still temporarily closed. Rentals for premises in the non-CBD area have fallen 10-20 per cent compared to last year. Vacancies in the first quarter of 2022 rose to 13.7 per cent, up 2 percentage points compared to the previous quarter.