Hanoi retail market in Q4/2019: New shopping center enters market
The additional supply drives up Hanoi's retail space to roughly 1.2 million square meters in the fourth quarter 2019.
Hanoi’s retail market in the fourth quarter (Q4) of 2019 witness the opening of a new shopping center – Aeon Mall – which supplies 74,000 square meters (sq.m) in Ha Dong district, JLL has said in a recent report.
The shopping center, which is the fifth of its kind in Vietnam, introduced new brands to Hanoi such as Koi Thé and Digiking. The excitement toward new brands and the new project have helped Aeon Mall Ha Dong attract an impressive number of customers since the opening in late November.
| An Aeon Mall in Vietnam |
With Aeon Mall, the total supply of retail market in Hanoi reached approximately 1.2 millions sq.m in Q4/2019. Of the total, shopping centers dominate the supply, while department stores and prime retail spaces did not record any significant growth.
Despite the new supply, occupancy rate posted an increase during the quarter. The rate reached almost 91% in Q4.
Aeon Mall Ha Dong alone recorded small vacant which was about 5%, indicating an effective leasing strategy.
Little vacant space was recorded at some Vincom shopping centers, except for Vincom Pham Ngoc Thach which was under renovation for re-opening in February 2020.
Rental, meanwhile, kept unchanged during the quarter. The average rent stayed at the same level compared to that in the previous quarter, at US$29.3/sq.m/month, an increase of 1.6% on-year.
Aeon Mall Ha Dong, despite of position in an outer district, was still able to set an asking price that was approximately on par with the general market, proving the appeal of the Aeon Mall chains to consumers and tenants, JLL said in the report.
The world’s leading services firm forecast the market would welcome new supply, mainly from two mega malls of Vingroup in Smart City and Ocean Park townships on the outskirt of the city.
This is also a new trend in the market in which shopping centers are located in impressive areas outside the city center. Those shopping centers usually provide a variety of entertainment and lifestyle activities such as gym, kid playgrounds, instead of purely for shopping.
In addition, new brands, including Uniqlo, are expected to enter Hanoi market in 2020. This brand is expected to open its first store in Hanoi in Spring 2020, after the successful opening of the first in HCM City in December 2019, showed the report.
