Lifestyle and home-living brands expand, especially in the City Fringe

• The market saw net absorption of 3,900 sqm in Q4 2024 and 72,400 sqm for the whole year. City Centre was the preferred area for international brand entry, with notable Q4 openings of Chinese fashion brand Urban Revivo at Vincom Dong Khoi and Popmart at Saigon Centre.
• Lifestyle retailers continued to expand in the City Fringe, evidenced by new stores of Uniqlo, H&M at Parc Mall and Muji at Thiso Mall Sala in Q4. New large-space furniture and home appliance tenants, such as Nitori from Japan and MR.DIY from Malaysia, were also seen.

No new prime mall completions in Q4 2024

• While the quarter saw no new prime mall openings, 2024 marked substantial retail expansion of 66,400 sqm in the City Fringe from the introduction of Vincom Mega Mall Grand Park in Q2 and Parc Mall in Q3, greatly enhancing the city’s retail offerings.
• The City Fringe’s vacancy rate dropped to 3.6% in Q4, down 3.0 ppts q-o-q and 1.8 ppts y-o-y. Meanwhile, the City Centre maintained its vacancy during the quarter at 2.8%, yet rose 1.2 ppts y-o-y, as some underperforming stores departed in the first half of the year.

City Centre’s rent saw a slight increase

• The City Centre retail market continued to thrive, capitalising on limited new supply and a scarce landbank. In Q4 2024, prime malls in this area saw their average net effective rents rise slightly to USD 84.3 per sqm, per month, up by 0.6% q-o-q and 1.5% y-o-y.
• The City Fringe saw net effective rent rise by 0.6% q-o-q, reaching USD 35.4 per sqm, per month, but remained stable y-o-y. This steadiness was largely due to the launch of Parc Mall in District 8 in Q3, which offered competitive rates to attract tenants.

Outlook: Demand remains resilient across the market

• In 2025, Marina Central Tower, a prime retail space in City Centre’s Grand Marina project, is anticipated to be finished, adding around 13,000 sqm. Demand from F&B, lifestyle and home living sectors are forecast to grow, driving market expansion and diversification.
• The market will continue its growth trajectory, however, the supply expansion in the City Fringe over the past year is likely to put pressure on rent growth in this area in the short-term.