The Hanoitimes - 2018 is expected to be an active year in the Hanoi retail market with a total of 157,000 sqm coming from eight under-development projects.
Most of these new projects are located in fast developing residential areas with good connecting infrastructure, which are expected to be attractive to both retailers and consumers, according to Commercial Real Estate Services (CBRE) Vietnam’s survey.
Hanoi retail market hit up.
In the next few years, the Hanoi retail market is likely to follow the expansion trend of residential and infrastructure developments. The areas along Ring Road 3 and the two under-construction metro lines including the West, South West, and South will be hot-spots with nearly 375,000 sqm of retail space coming online over the next three years. Significant projects include Aeon Mall Ha Dong in addition to several shopping centers by Vincom Group and FLC Group.
Particularly, an Emerging central business district (CBD) will soon to be formed in the western area of Hanoi. The area covering Cau Giay, Tu Liem, and Thanh Xuan district is currently the largest retail cluster in Non-CBD, accounted for 41% of total supply. It will continue to remain its position in the next few years with 83,300 sqm future supply in the pipeline.
In terms of format, malls as a component of residential complexes will continue to thrive, thanks to a high level of supply in the condominium market. Eight out of 12 future projects up to 2020 are retail podiums.
“This format has certain advantages such as having resident potential customers and increased traffic due to the residential component, providing added services and amenities and improving the image for the whole project. However, suitable scale, design and parking spaces will be key factors for successful malls,” said CBRE’s representative.
Meanwhile, Vietnam’s retail market is expected to grow fast to meet strong increases in shopping and recreational demand from 2018 – 2021, Pham Thai Binh, Head of Retail Leasing Savills Ho Chi Minh City was quoted as saying.
The latest figures from the Savills Vietnam, numerous renowned international retailers plan to invest in the sector in Vietnam, including Thailand’s TCC group and Central Group, Singapore’s Mapple Tree and Kepple Land, Korean Lotte and Emart and Japanese Aeon and Takashimaya.
In 2017, Vietnam’s retail sector earned nearly US$129 billion, up 11% from 2016, a high growth compared with other nations in Southeast Asia, according to General Statistics Office.