Cushman & Wakefield 2013/2014
Overview Photo / Emmanuel Huybrechts, Vietnam s capital has been for thousands of years the political, cultural, historical and educational centre of the country. However, with the fast growing of the economy and worldwide integration, is quickly reaching Ho Chi Minh City to become one of the largest economic centers in the country. With the expansion of the administrative boundaries of the capital city of to cover an area four times larger, it is now the 17th largest capital in the world by land area. The city, despite the economic recession which happened almost at the same time with its geographical expansion, has always met its GDP growth target and indeed exceeded the Municipal People s Committee s target. With approximately seven million people in the metropolitan area and some three million in the urban district, has a huge potential for the development of modern retail by both domestic and foreigners companies. In a very short time period (Q2/2011 to Q2/2012, the total retail market supply has increased sharply by 41% from 463,985 sq.m to 652,127 sq.m. In the CBD, the retail supply has not changed but the demand along with rent rate continues to rise, whereas it is decreasing in the newly developing areas. Some main streets such as Trang Tien, Ly Thai To, Le Thai To serve as the centerpiece of this retail dominance, and now have the highest rentals rate in Vietnam.
Overview 7.0million Metropolitan Population 1,887,000 Number of foreign tourists to
Key Retail Areas & Streets TRANG TIEN Trang Tien is of the highest retail rent rate locations and with the re-introduction of Trang Tien Plaza in late 2012, this will become the most prominent high-end retail street supporting high-end brands such as Chanel, Hermes, Dior and others. LY THAI TO Ly Thai To is dominated by the most premier retail brands with numerous high-end fashion tenants and internationally recognized retailers and global brands such as Gucci, Milano, Zegna and Hugo Boss. LE THAI TO Le Thai To is identified as a prime retail strip opposite Hoan Kiem Lake. Recent years, the presence of some international brands like: MAC, Clinique and Estee Lauder see it as a favorite choice for sophisticated customers. NGO QUYEN Ngo Quyen, especially in and around the Sofitel Metropole is a prominent and recognized retail luxury corner with Louis Vuitton, Salvatore Ferragamo, Bally, Chopard, Mont Blanc, Cartier and continues to be the prime destination for locals and tourists alike. VINCOM Center & VINCOM GALLARIES Vincom Center & Vincom Gallaries is considered a premier shopping center in due to its strategic location and is one of a few centres that provides a shop, work and leisure environment. Vincom is preferred by new-to-market brands in terms of branding as well as maximisation sales through strong foot traffic numbers. Vincom has a different retail strategy and attracts brands like Apparel brands are FCUK, Naf Naf, LK Bennett and flagship electronic store such as Best Caring and also features Megastar Cineplex.
Key Retail Areas & Streets market overview Data as of August 2012 KEY AREAS/ STREETS/SHOPPING CENTERS CONSUMER PROFILE MAJOR RETAILERS PRESENT TYPICAL RENT RATE ($/SQ.M) Trang Tien High end user Burberry, Louis Vuitton, Dior 80 200 Ly Thai To High end user Gucci, Milano 150-200 Le Thai To High end user Playboy, MAC 50 120 Ngo Quyen High end user Louis Vuitton 150-180 Ba Trieu Low Medium - Middle end user Cle de Peau, Ducati 50-80 Vincom Center (Shopping center) Middle end user Naf Naf, FCUK, Morgan De Toi 30-150
Food & Beverage has been selected as one of the top ten cities for food in the world by Sherman s Travel and Vietnam s national dish Pho has been also named as one of the top five street foods in the world by Global Post. The food and beverage market has seen massive and rapid growth from fast food through to luxurious dining. The economic crisis did not appear to impact on F&B as cheap eateries dominate this market and the cultural environment sees people dining out not dining in. F&B streets for example Ma May, Hang Buom attract both tourists and locals. On the other hand, Xuan Dieu is the F&B hot spot for expatriates while the old-quarter is still the most famous restaurant precinct. market overview KEY AREAS CONSUMER PROFILE FOOD & BEVERAGE OPERATOR INCLUDING RENT RATE (USD/ SQM)- Ma May Local, tourist Private owned Not official rent/use their own property Hang Buom Tong Duy Tan Local, tourist Private owned 30-40 Data as of August 2012 Local, tourist Private owned Not official rent/use their own property Ta Hien Mainly tourist Mainly private owned 30 Xuan Dieu Mainly expatriates Vine Restaurant and Wine bar, Alfresco 10-20
JOHN STRACHAN Global - EMEA Ph: +44 20 7152 5090 43-45 Portman Square London, England W1A 3BG john.strachan@eur.cushwake.com www.cushmanwakefield.com MATT WINN Americas Ph: +1404-853-5309 55 Ivan Allen Jr. Boulevard, Suite 700 Atlanta, GA 30308 matt.winn@cushwake.com JAMES HAWkEy Asia Pacific Ph: +86 28-8658 7878 Unit 1407 yanlord Landmark Office Tower No. 1 2nd Section kenmin South Road Chengdu, Sichuan, China 610016 james.hawkey@ap.cushwake.com No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.