SUPPLY: SHORT-TERM PIPELINE REMAINS LIMITED IN SCALE
Total retail stock reached approximately 1.21 million sqm in Q1 2026, unchanged QoQ with no new completions, and increasing 0.9% YoY following additions in 2025. The market has entered a short-term consolidation phase, with focus shifting toward occupancy stabilization and tenancy mix optimization
DEMAND: OCCUPANCY CONTINUES UPWARD TRAJECTORY
The average occupancy rate improved to 94.7%, increasing by 0.6 ppt QoQ and 1.5 ppts YoY, reflecting sustained absorption across existing stock.
• Department store occupancy remained near full at 98.9%, decreasing by 0.3 ppts QoQ, reflecting structurally limited supply. Meanwhile, retail podiums recorded 86.2%, increasing by 0.9 ppts QoQ, indicating gradual absorption, albeit with weaker post-Tet leasing momentum.
• Shopping Centers: Occupancy increased to 95.2%, up 0.7 ppts QoQ and 1.5 ppts YoY, maintaining the strongest performance among asset types, supported by a continued flight-to quality toward well-performing malls.
Leasing activity remained active in lifestyle-driven segments, with notable transactions in Q1 including Pop Mart at Thiso Mall and the simultaneous openings of Mena Cosmetics & Perfumes and TWG Tea at Menas Mall Saigon Airport, reinforcing decentralization trends
AVERAGE ASKING RENT: STABILITY WITH SELECTIVE CORRECTIONS
Average asking rent stood at approximately USD 54.1/sqm/month, decreasing by 0.2% QoQ but increasing by 1.2% YoY, reflecting stable overall pricing with minor short-term adjustments. The marginal QoQ decline was primarily driven by selective rent recalibration in retail podiums to support occupancy, while core types maintained strong pricing discipline.
Shopping center rents averaged USD 47.7/sqm/month, declining by 0.5% QoQ due to seasonal post-Tet adjustments, but rising by 1.2% YoY. Rental growth continued to be driven by Non-CBD demand, while CBD rents remained largely stable.
MARKET OUTLOOK
In the 2026-2029F period, the HCMC retail market is expected to record an additional ~286,542 sqm of retail space, with ~17% in the CBD and ~83% in Non-CBD areas (mainly in the East and North).
Future supply will be driven by large-scale shopping centers and retail podiums within integrated urban developments. Major projects such as Central Mall - TGC (former Thu Duc City), and AEON Mall Hoc Mon are expected to anchor new consumption hubs, reinforcing the shift toward decentralized, experience-led retail formats.
Learn more by download our most recent Ho Chi Minh City Retail MarketBeat.
