Ho Chi Minh City retail rents to rise by up to 5% this year

Prime mall supply is expected to remain stable in the near term.

Ho Chi Minh City's prime retail market recorded mixed absorption in the second quarter of 2026, with fashion and food and beverage operators continuing to drive leasing demand, according to JLL.

City Centre recorded positive net absorption of approximately 300 sq m, supported by new leases from fashion retailers including Pleat Kora and Victoria's Secret. City Fringe, meanwhile, registered negative absorption of around 2,000 sq m, which JLL attributed to lease expiries and tenant restructuring rather than a broad weakening in demand. New openings included Popmart at Thiso Mall Thu Thiem and Haidilao at Parc Mall.

No new prime retail space was completed during Q2, leaving supply unchanged at 96,500 sq m in City Centre and 605,200 sq m in City Fringe. City Centre vacancy fell 0.3 percentage points quarter on quarter to 8.1%, helped by new leases at destinations including Vincom Dong Khoi and Saigon Centre. City Fringe vacancy increased 0.4 percentage points to 3.9%.

Ground-floor gross asking rents rose modestly, reaching USD 238.2 per sq m per month in City Centre, up 0.8% quarter on quarter, and USD 66.8 per sq m in City Fringe, up 0.7%. JLL said the moderate gains reflected landlords' focus on preserving occupancy and retaining tenants rather than pursuing aggressive rental increases, with flexible incentives continuing to support occupier operations.

Looking ahead, JLL expects prime mall supply to remain stable in the near term, supporting a decline in vacancy. The consultancy said experiential retail, including high-quality and interactive environments tailored to local preferences, will be an important driver of growth.

Average asking rents are forecast to rise by around 3% to 5% annually in both submarkets, although macroeconomic pressures could weigh on consumer sentiment and require developers and retailers to adjust their strategies.