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HCM City’s retail property market to see new trends
22:32, 2016/03/02
The property market in Ho Chi Minh City will see good prospects for all segments this year and the retail sector will see new trends, according to experts in the field.
2016 is a key year for the retail market in HCM City, as domestic consumption increases and foreign retailers enter the market to take advantage of opportunities created by free trade deals, said Neil MacGregor, General Director of Savills Vietnam, the leading real estate service provider in the country .
A young population and rising middle class are two important factors that contribute to the retail market’s growth.
The Sun Avenue project in HCM City
The Sun Avenue project in HCM City
The emergence of a number of mid-sized shopping centres in the city’s new urban areas demonstrates the trend of satisfying the two groups’ demands.
According to Savills experts, retail development has been feverish as foreign and local developers compete in this rapidly changing environment. In 2015, the year-on-year growth in goods and services retail sales stood at 9.5 percent, one of the highest rates globally.
This year, the retail property market in HCM City will see a number of business premises as well as retail models, including Takashimaya in Saigon Centre building.
The retail market will see new trends that encourage customers to spend more, according to Henry Chin, Head of Research at CBRE Asia-Pacific.He said the retail markets in HCM City and Hanoi added 150,000 square metres of space for rent last year. He added that the vacancy rate for commercial centres in HCM City is forecast to remain at 10 percent thanks to key clients.
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