Shopping centers: demand soared in Q3 after beautification

During the third quarter, many shopping centers in Ho Chi Minh City and Hanoi attracted more tenants after renovations. The 25,000-square-meter Hung Vuong Plaza shopping mall in Ho Chi Minh City reopened in the third quarter after renovations following a change of ownership. After purchasing Hung Vuong Plaza from Parkson Vietnam, Kinh Do Corporation increased the number of entrances to four. Even before the complex opened, occupancy was recorded at over 80 percent, much higher than before, with monthly rents ranging from US$30 to US$95 per square meter.

Japanese retailer Takashimaya bought Indochina Plaza Hanoi, undertook a two-year renovation and renamed it The Loop Shopping Center in June. Renovations and structural changes' are also planned 'tenants at Vivo City, Giga Mall and Vincom 3/2 shopping centers in Ho Chi Minh City next year. Real estate consultancy Cushman & Wakefield said some malls rearranged their planning in the third quarter to optimize space, and as a result, average first floor rents increased 10% and 7.3% in Hanoi and Ho Chi Minh City, respectively.

The expansion by several retail giants has also made' 's market more dynamic in the third quarter. In Hanoi, Korea's Lotte opened Lotte Mall Westlake Hanoi in Tai Ho district with a 72,000-square-meter leasing area, which was fully occupied on opening day on September 22. Thailand's Central Group launched a new furniture brand in the southern province of Dong Nai and central province of Quang Nam, while Japan's Aeon Mall introduced its supermarket model in the southern province of Binh Duong. Aeon Mall Hue, the retailer's first mall in the central region, is scheduled to open in 2024 with an area of 138,000 square meters.