Ho Chi Minh CityIn the first quarter, the city had 25% of the returned retail space in the food and beverage industry, of which domestic F&B accounted for more than half.
Savills Vietnam’s retail space market report said that in the first quarter, Ho Chi Minh City recorded returned premises at 27 trade centers and retail podiums, 43% of which belonged to the fashion and retail industry. 25% is the food and beverage (F&B) industry. In which, domestic F&B brands were strongly affected and accounted for 58% of the returned dining space.
Savills said that although many premises were returned, landlords had stopped preferential policies and no longer offered drastic discounts like during difficult times because of the epidemic. The minimum rental period has also been increased and the policy of increasing the annual rental rate is up to 10%.
CBRE Vietnam also said that in the first quarter, requests to rent retail space in the Ho Chi Minh City market recorded a significant decrease compared to the pre-epidemic period, especially in the food service and fashion industries. .
Notes of VnExpressfor see Many food courts attracting young people in the center of Ho Chi Minh City such as Districts 1, 10 and Binh Thanh still have a large amount of vacant space (mainly townhouses) that cannot be filled until the beginning of the second quarter of 2022. In which, there are many premises that were once leased by F&B units, currently vacant for 1-2 years without any move to renovate.
Typically in District 1, Nguyen Hue pedestrian street still has a lot of vacant space for more than a year, the asking price is 14,000-15,000 USD a month. Near West Bui Vien Street, District 1, on Nguyen Thai Hoc and Pham Ngu Lao Streets, many double premises (two apartments combined) or corner location, which is very popular with F&B businesses, now It’s also cheap, with a rental price of 12,000-15,000 USD a month.
This development shows that the retail space for rent market has not changed much in the first quarter of this year. Even retail premises in the suburbs, far from the center have not stopped the trend of reducing rents by 10-20% compared to the previous year due to the unfavorable location compared to those located in District 1.
Explaining the reason, CBRE Vietnam cited data from the Ho Chi Minh City Department of Statistics, which estimated that in the first quarter of 2022, the total retail sales of consumer goods and services reached VND 266,942 billion, down 4.8 billion VND. % over the same period. The decrease was concentrated in service industries such as karaoke, discotheques, massage, tourism, which are groups of industries reopening according to the schedule, so revenue is still limited. In addition, other reasons such as income as well as consumption habits of people have changed, purchasing power has not reached expectations.
However, both Savills and CBRE forecast that commercial and service revenue in the coming quarters will likely find positive growth again when business activities in the area and people’s consumption tend to increase. upward trend. This will be verified through long holidays, people’s activities are gradually returning to the normal pace like before the pandemic broke out.