Fashion and F&B retailers fuel leasing momentum

• Leasing momentum remained solid in Q1 2026, driven by expanding F&B and fashion retailers. Saigon Marina IFC welcome new F&B and healthcare tenants, while Saigon Centre strengthened its luxury positioning with the addition of Moschino, Coach, and The Hour Glass.
• The market recorded net absorption of negative 4,900 sqm, reflecting natural tenant rotation from expiring leases and strategic repositioning rather than demand weakness, as retailers refine their portfolio strategies.

Market self-adjusts amid supply pause

• With no new prime retail space completed in Q1 2026, total supply remained steady at 96,500 sqm in the City Centre and 605,200 sqm in the City Fringe.
• City Centre vacancy stabilized at 8.4% as leasing activity at Saigon Marina IFC offset tenant departures at other malls. City Fringe vacancy edged up 0.8 pp q-o-q to 3.7%, though remained flat y-o-y.

Modest rent growth amid focus on tenant retention

• Gross asking rents at ground floor rose modestly on a quarterly basis to USD 236.4 per sqm per month (+0.2%) in the City Centre and USD 66.3 per sqm per month (+0.4%) in the City Fringe, as landlords maintained competitive pricing strategies.
• The modest uptick underscores landlords’ focus on preserving occupancy and retaining tenants rather than pursuing aggressive rental growth amid heightened macroeconomic uncertainty. Flexible incentive structures continue to support tenant operations.

Outlook: High-quality, interactive spaces define experiential retail evolution

• In the near term, prime mall supply is expected to remain stable while vacancy rates gradually compress. Despite cautious consumer spending in certain segments, retail’s trajectory is clear, favouring experiential, immersive environments tailored to local tastes.
• HCMC’s retail market will maintain growth, with average asking rents rising around 3-5% per annum in both submarkets. However, macroeconomic headwinds may pressure consumer sentiment, requiring strategic adjustments by both developers and retailers.