Rents for retail space in Da Nang escalated

In the first 6 months, the average rent of retail space on the ground floor in Da Nang increased 8% year on year.

Savills Vietnam has just released a report on the real estate market in Danang in the first two quarters of 2019 with a relatively high increase in retail rents despite the addition of many new shopping destinations.

Specifically, the average gross rent of retail space on the ground floor in this coastal city increased 8% year on year. The total supply of retail space in Danang is about 212,000 m2, up 20% year on year. Retail podium has performed the best due to the positive impact of newly launched projects. The market has diversified in both the city center and the coastal area with market entry of three projects in Hai Chau and Ngu Hanh Son districts.

The F&B (Food and Beverage) category in this coastal city has a strong growth in the first 6 months of 2019. Many F&B brands have not yet entered the Hanoi market but are already presented in Danang. In the second half of 2019 and 2020, the market will receive nearly 96,000 m2, concentrated mainly in Ngu Hanh Son district.

In the first 6 months, the office leasing market in Da Nang is also growing strongly. The total supply of offices for lease in Da Nang is about 94,000 m2. Over the past 5 years, the supply has increased by an average of 7% per year. About 75% of supply is located in Hai Chau district. Gross rent increased slightly by 1% year on year but occupancy decreased by 5 percentage points year on year. Grade A recorded the most improvement.

Savills said that Da Nang had 2,594 newly registered businesses, up 8% year on year. As a result, the office market has a lot of potential for development. New supply will continue to be supplemented by a project in Hai Chau district in the second half of 2019 and a project in 2020, providing a total of 13,000 m2.

According to Vu Le