Crescent Mall to open this year
Savills Vietnam announced yesterday that half the total space of retail development named Crescent Mall in Phu My Hung in HCMC’s District 7 had been leased out and the shopping center would be in place by November.
Rupert Provest, director of agency for Savills Vietnam, a property service provider, said at the project site that 50% of the 45,000-square-meter shopping mall was leased by local and foreign retailers, including major brands.
The US$110-million development, comprising of six levels of retail floor and three basements, is offering a monthly rent of US$50 per square meter for spaces on the ground floor. Rent will be lower on upper floors.
Provest revealed that tenant Megastar Company had confirmed a total space of 2,500 square meters to set up an eight-cinema multiplex on the fifth floor of the mall.
The Imex Pan-Pacific Group had signed up a deal for 1,700 square meters to set up stores introducing fashion brands such as Niketown, GAP, Tommy Hilfiger and Diesel.
New retail developments will contribute a significant supply to the retail market in HCMC, where department stores, shopping centers, retail podiums and supermarkets contribute some 630,000 square meters.
Savills said the central business districts remain the most desirable locations for both developers and retailers because of prime location and high turnover.
The average rent for the whole market was recorded at US$75 per square meter, and the increase in rent caused the average occupancy of the market to decrease by 3% in the first quarter.
Demand for retail space in the central business district might increase in the short and medium terms as many international retailers are entering the market. However, the increase rent rate could lead to a trend of retailers seeking shop-houses along main street, which have more reasonable rent rates, according to market research.
Savills said the fast growth of the country’s retail market was one of the main reasons the country had become an attractive destination. However, rent is the biggest concern for both new and existing retailers.
The company projected that some 960,000 square meters of retail spaces will come online from the second quarter of this year.
