
Vietnam prime retail rents recover to pre-pandemic levels in Q2
Monthly net effective rents in Ho Chi Minh City increased 12.2% to USD41.7 per sqm.
Net effective rents in Ho Chi Minh City’s (HCMC) prime malls are now back to pre-pandemic levels, increasing 12.2% y-o-y and 0.6% q-o-q to USD41.7 per sqm per month in Q2.
According to JLL, the high y-o-y growth in rent is mostly attributable to the low net effective rent in 2Q21 (USD37.1/sqm/month) as a result of the rental concessions policy implemented during the second social distancing period in HCMC from June to September 2021.
“The quarterly rise, albeit minor, in rentals indicates a rebound in demand after the pandemic, especially during the short-term period of a supply deficit, as many planned malls are behind schedule, hence raising competition for available space in high-quality malls,” the analyst said.
JLL added that the overall occupancy rate in HCMC’s prime malls increased 50bps q-o-q to 96.2% in Q2. According to a JLL report, tenants continuously established new leasing agreements with landlords in the face of the scarcity of available space, with only 20,000 sqm available in the city’s 13 prime malls.
Commentary
Revenge Tourism is the New Direction of Travel for Asia