Commercial real estate back in action

Commercial real estate back in action

The strong recovery of demands for entertainment and shopping has contributed to making the commercial real estate market vibrant again. 

According to a report by Batdongsan, in the Q1/2022, the market for commercial shophouse rental recovered significantly. Demand for buying and renting commercial properties on the ground of residential buildings increased by 19% compared to the end of 2021.

Data from the Batdongsan shows that, from the beginning of the year, the rate of leasing, buying and reselling of commercial properties on the ground of residential buildings reached 80 to 100%, following the sharply increasing demand for consumption, shopping, entertainment, etc. after the pandemic was put under control.

Despite the strong demand, the supply of such property is rare. In Ho Chi Minh City, from Q4/202,  the shophouse inventory has been reduced by 85% over the same period and is expected to remain low until the beginning of 2023 due to the impact of new licensing policy.

According to Batdongsan.com.vn, the supply of commercial shophouses in early 2022 is mainly seen in the East. The average selling price starts from VND 150 million per m2. Some projects have a price of VND 40-50 billion per shophouse.

Real estate experts explain that the potential of a shophouse is real only if it ticks all the boxes including easy traffic, high population density and the connection with neighboring commercial areas. Therefore, shophouses located in well-planned and established townships are always attractive to the market.

For example, in Mizuki Park, a 26-hectare integrated township designed based on international standards, commercial shophouses are always under investors’ radar.

“Though not yet officially launched to the market, many shophouses in Mizuki Park have been reserved by buyers,” said the representative of the investor.

Mizuki Park project is located in South Saigon, with a total area of 26 hectares, located near an important route, i.e. Nguyen Van Linh Boulevard. Perspective photo: Mizuki Park

According to investor Nam Long, Mizuki Park has been filled at high speed, especially shophouses. The commercial shophouses in Flora Mizuki 1-5, Valora Mizuki have been sold and used for various businesses, such as mini supermarkets, food stores, restaurants, cafes, drugstores… Meanwhile, shophouses in blocks Flora Mizuki MP9, MP10 and Flora Panorama (condominiums) have also gradually filled up and now only have a few units left.

In addition, Nam Long also said that the occupancy rate in Mizuki Park is high. Up to now, more than 3,000 townhouses and apartments have been handed over and occupied by thousands of families, creating a stable and sustainable demand for commercial activities in the area.

A broad network of facilities and services right on the ground, servicing the essential needs of the community. Photo: Mizuki Park

A special feature in this township is that the ground floor of condominium buildings is designed into two busy streets connecting the main corridors, creating public spaces like event squares, schools, Marina square, marina, outdoor cinema to attract residents. This means that there will be a collective of shops, and customers can easily access the services they need within walking distance.

Perspective image of Commercial Corridor formed by shophouses in Mizuki Park.

Compared with other blocks, commercial shophouses in Flora Mizuki MP9, MP10 and Flora Panorama have a bigger location advantage, sitting along the 25 m wide commercial corridor. In the future, two high-end shopping centers will be built on this route with large sidewalks and spacious and convenient parking lots. Next to that is the luxury villa compound The Mizuki where residents are willing to pay for facilities close to their houses.

Nam Long’s representative said that investing in shophouses in Mizuki Park is a smart choice as the profit margin will increase over time as numerous customers will come and use the services in the future.

“In addition to the existing community, in the near future, when the entire township is fully operated, it will be home to more than 15,000 residents. Not to mention a large number of people in surrounding neighborhoods will be drawn to use services of the integrated facilities such as schools, administrative and cultural centers, and healthcare institutes. The upcoming Binh Hung 2 Primary School located in Miuki Park township will be adding an important benefit for local residents,” the investor shared.

Source: VnExpress