Residential areas in Ho Chi Minh City, Vietnam are increasing and with it, demand for shophouses soared particularly in Districts 2 and 7.
According to Viet Nam News, small service establishments have been growing as residential communities have also increased over the past years. These establishments propelled the need for additional shophouses to be established in what could be Vietnam's most popular city.
The report noted that most of the businesses in need of new spaces are spas and restaurants. While developers have been erecting shophouses in both District 2 and District 7, demand continues to rise.
Top commercial real estate services provider CBRE Vietnam said of the development, "In 2018, HCM City's real estate market reported a significant decrease in the new supply of ready-built townhouses and villas. At the same time, shophouses were receiving great attention from buyers."
A broker working in District 7 told the outlet that shophouses are quickly getting sold out whenever a new project is announced to the public. Demand is always high despite competition, the broker explained.
In District 2, demand also increased by a huge margin as the district continues to build urban areas to cater to fast-growing residential communities that constantly look for food and other services.
Shophouses in Ho Chi Minh City are being sold as freehold facilities or on leasehold to investors who lease the establishments for commercial use. Flexibility and high capital gains are just some of the reasons why the facilities are easily grabbed by businesses.
Some of the brands that occupy shophouses in the city are El Gaucho, 7 Eleven, Vinmart, Genshai, and Thea Clinic. Food and beverage brands are very popular in Ho Chi Minh City, as well as home décor providers.
So far, District 7 has a whopping 471 shophouses, including the Phú Mỹ Hưng City Centre, which is considered as a promising market that caters to various consumer demands.
Last week, CBRE reported that the Nha Be district area is one of the city's locations with the highest potential for growing shophouse businesses. According to Vietnam Finance, the sector ballooned over the past year while new projects are underway.
Existing shophouse facilities that have been experiencing growth are Sunrise Riverside, Dragon Hill, Hoang Anh Gia Lai 3, Saigon South Residence, and Phu Hoang Anh.
While shophouse markets are very much in demand in the city, class-A apartment projects are also a huge thing in Vietnam these days. Serviced apartments are becoming more prevalent as people have been increasing their building purchases for leasing purposes.
