The information about Aeon Mall Ha Dong project will be launched in late this year. It not only affects the real estate market in the surrounding areas but also affects other retail centers.
On 26th May, Mr. Duc Chung Nguyen – Chairman of Ha Noi People’s Committee Hanoi signed the 3251st decision and approved of the rate detailed planning 1/500 of Ha Dong International Hospital and Trade Center are invested by the BIM Group.
The planning study land in the administrative boundary of Duong Noi Ward, Ha Dong District, Ha Noi with the total area of research of 16.65 hectares including the area of medical land (Ha Dong International Hospital) is 71 124 sqm and the area of public land (commercial center) is about 95 370 sqm.
In particular, the hospital will have the area of the building of 19 282 sqm, the total floor area of 231 974 sqm and the building density of 27%. The Center has the area of commercial construction of 57 000 sqm, the gross floor area of 213 750 sqm and the building density of 60%.
This is the land that BIM Group will partner with Aeon to build the Aeon Mall Ha Dong Trade Center. It is sure that with the gross floor area of 214 000 sqm, Aeon Mall Ha Dong will have the strong impact on the retail market in Hanoi within the 3 next years.
See more: Vietnam Real Estate Market
The retail market report of Hanoi in the first quarter of 2017 of Colliers International said that in the first quarter of the year, the total retail area of real lease of Hanoi is not changing with approximately 848 000 sqm from 51 projects. Most of the area is offered by the commercial centers making up 78% of the area.
The retail podium in housing development projects are more and more, however, the rental situation is not satisfied, the total area of real hire here is still less, it is just more than 100 000 sqm in 19 projects.
The average fill rate is 83%, many investors of the buildings have to reduce the prices with the hope of attracting more rent. The rental bid of all segment decreased 4.7% reaching 33 USD/sqm. The retail block and commercial centers decreased also the rental prices 24 USD/sqm and 34.2 USD/sqm.
Most of the luxurious fashion brand of international and domestic focus on the commercial buildings in the central area. In areas far the center, there are the budget brands, supermarkets and food services and entertainment.
Colliers International reviews, within 3 next years, the retail supply sources in Hanoi will significantly increase with total floor area of 825 000 sqm from 16 projects. The new trade centers are often located in densely populated areas for the average income and it provides many services such as specialized stores, entertainment, utility, and sport. Due to the large supply in the future, the rental price and rates of filling will decrease about 2-3% which helps the market had time to absorb the new rental area.
Meanwhile, according to CBRE Vietnam, although there have no new projects, the retail market in Hanoi is relatively vibrant in terms of investment. In 2017, the investors in South Korea and Japan are the more notable act. Lotte has just bought the 7.3 hectares of land which will be one of the biggest commercial center of this Corporation in Vietnam until the present time, it is located in an high-end urban area with many foreign residents.
Particularly, there are 2 projects: Lotte and Aeon Mall Ha Dong promising that the large supplies will debut in 2019 and will create the strong competition. In addition, in 3 next quarters of 2017, it is expected that there has more than 100 000 sqm of retail space opened.
Meanwhile, the Savills statistic shows that the average rental price of ground floor fell by the quarters as well as years and hits the bottom in four years. The average power increased of 0.7 percentage point according to the quarter, however, it fell 2.2 percentage points according to the year. Meanwhile, in the retail center decreased 0.5 percentage point in the quarter, the trade center and retail podium have the increased capacity of 0.9 percentage point and 11.5 percentage points.
Ms.Thu Hang – Deputy Director of Savills Research Department of Hanoi reviewed that Ha Noi market is witnessing the development of retail networks and diversification of business models such as the commercial shophouses and convenient stores. In the future, the market will continue to expand significantly with the accession of the featured projects having the scale of more than 100 000 sqm such as Vincom D’Capitale and Aeon Mall Ha Dong.
In the increasingly competitive situation fierce, Colliers International advises that the old trade center should catch up to the changes on rental demand from the new retailers to maintain profits.
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