Vietnam's Real Estate Remains Attractive to Retail Investors

HANOI, Oct 24 Asia Pulse - The real estate market for retail services in Vietnam remains appealing to both local and foreign investors even though the global economy is experiencing fluctuations, said a representative from the property consulting and management firm CB Richard Ellis Vietnam.

CBRE Vietnam's Associate Director for Market Research Renato Shordon made the remarks at a press briefing in Hanoi on October 23 to announce the Hanoi Property Market Update.

Trade centres and retail spaces across Vietnam have indicated signs of recovery much quicker than was expected even though consumers have cut their spending due to high inflation rates, Shordon stressed.

He cited market research company Nielsen's global consumer confidence survey, saying that Vietnamese, who ranked ninth in the list, is among the most optimistic consumer group.

According to the CBRE Vietnam executive, an insufficient supply of space for trade centres and high rent levels at downtown shopping plazas are considered to be other factors behind the attraction of an increasing number of investors to this market.

Shordon revealed that 13 Hanoi-based shopping centres currently offer a combined total of 100,000 sq.m, with an occupancy rate of 90 per cent and rents costing up to US$130 per sq.m per month at the heart of the city.