Demand for Retail Space to Increase in 2010

According to CBRE’s Q1 2010 quarterly report, there is an adversity in HCMC’s real estate market in the first quarter of 2010. The rental rates of offices of all grades decreased while the rental rates of retail space continued to increase in Q1, 2010.

 

Specifically, rents continued to soften at Grade A and B from 2 to 3 percent respectively. The Grade C market saw the largest percentage decrease in rents (5.3 percent compared with previous quarter).

 

In the contrary, although the HCMC retail market saw no new supply in the first quarter of 2010, the rental rates were pushed up due to increasing demand for space. Fashion and F&B continue to drive the market. Besides, Vincom Center is expected to launch with the highest retail rents in the CBD (from US$ 200 to US$ 250 pm).

 

According to Mr Marc Townsend, Managing Director of CBRE, the HCMC retail market continues to strengthen as retailers are forced to compete for the few prime locations. In addition, the first quarter of 2010 has seen rental prices across city increase, a trend that will continue in the CBD in the second quarter.