Ho Chi Minh City retail rents to increase by 2-3% next year

Lifestyle brands and experiential retail will continue to expand.

According to a JLL report, over the next 12 months, prime mall supply in Ho Chi Minh City is expected to stabilize at current levels, while vacancy rates are projected to compress. Lifestyle and experiential retail paradigm will continue evolving, emphasizing premium and highly interactive space.

“The market will sustain its upward trajectory with average rents appreciating by 2-3% annually across submarkets. However, competitive pressure coupled with prevailing macroeconomic volatility may force developers and retailers to recalibrate strategies,” the report added.

Here’s more from JLL:

The market saw positive net absorption of around 2,000 sqm in the quarter. City Centre earned 4,000 sqm net absorption, mainly driven by leases from the newly opened Saigon Marina IFC. Meanwhile, City Fringe faced competitive pressure, recording negative figure of around 2,000 sqm.

Both submarkets witnessed the continued expansion of Asian lifestyle retailers such as Oh!Some and KKV. Notably, Chinese lifestyle brand Beneunder debuted at Aeon Mall Tan Phu, confirming strong international investment interest in HCMC retail market.

City Centre welcomes new supply – Saigon Marina IFC

In Q3 2025, prime mall supply in Ho Chi Minh City was supplemented with nearly 12,450 sqm NLA thanks to the completion and official opening of Saigon Marina IFC. Due to new supply impact, the vacancy rate in City Centre increased to 10.6%, an 8.5 ppts quarterly rise.

Meanwhile, the vacancy rate in City Fringe slightly rose 0.3 ppts q-o-q to 3.7% yet demonstrated resilience with 0.6 ppts y-o-y drop owing to robust tenant demand.

Rents maintains stable growth momentum

In City Centre, rents maintained stable growth momentum, supported by limited supply and stable visitor traffic. Yet, with competitive offer from the new Saigon Marina IFC, the average gross asking rent of ground floor in the area recorded at USD 234.4 per sqm  per month in Q3, down 4.2% q-o-q.

City Fringe’s gross asking rent of ground floor rose to USD 65.6 per sqm per month, up 0.6% q-o-q. The rental growth is sustained through flexible tenant restructuring by developers and innovative retailer business models.