Q3/2020 Vietnam Media Release

Savills Q3/2020 Viet Nam Media Release on HCMC Retail shows average occupancy of 94% easing -1ppts quarter on quarter (QoQ) and -2ppts year on year (YoY) reflected further pandemic fallout. Savills Q3/2020 tenant survey showed the extent of F&B and Fashion volatility with closures, or leased areas being trimmed back. According to the HCMC Statistics Office (PSO), total F&B sales to 9M/2020 have slumped -39% YoY.

In Ha Noi Retail total stock of approximately 1.6 million m2 was stable quarter on quarter (QoQ) and up 5% year on year (YoY). Over the past five years, stock growth has averaged 6% pa. The Secondary area with 42% of stock had the highest retail density of 0.48 m/person. Average ground floor gross rent eased -1% QoQ and -3% YoY to a three-year low. Average occupancy eased -1 ppt QoQ and -4 ppts YoY to a four-year low. Quarter three take-up was down -7,000 m2 and -45,000 m2 YoY. Shopping centers were the slowest segment, while the West was the slowest area. Landlord and tenant outlook improved as containment measures eased. Shopper traffic is slowly recovering but remains low. Notable enquiries are mostly from existing F&B operators expanding from HCMC into Ha Noi. New foreign retailers are postponing entries.

Introducing our latest release with updates on HCMC and Ha Noi markets across 6 property segments: Retail, Office, Hotel, Serviced Apartment, Apartment, and Villa & Townhouse.