How to Rent Out a Shophouse in Ho Chi Minh City, Vietnam: Pricing, Demand, and Tenant Strategy

Ho Chi Minh City’s retail shophouse market presents a complex picture for landlords and operators. While overall retail occupancy remains robust, prime locations are experiencing vacancies, leading to a nuanced pricing strategy. Understanding these dynamics is crucial for successful leasing.

The market is seeing a divergence: some high-demand areas maintain high rents, while others, particularly in central districts, are experiencing significant price drops. This shift requires a flexible approach to pricing and tenant acquisition.

TL;DR: Ho Chi Minh City’s retail occupancy hit 93.6% in Q2 2025, yet average asking rents for retail space dipped to USD 53.36/sqm/month, a 3.32% year-on-year decrease. Shophouse rents in District 1 and District 5 have seen substantial drops (17-20% and 25-30% respectively), though areas like Phu My Hung (District 7) maintain high rental prices. Demand is strong from international and domestic brands, particularly in F&B, fashion, and beauty, driven by a growing middle class²³.

Market Snapshot

The Ho Chi Minh City retail landscape is in flux. Despite a healthy overall occupancy rate of 93.6% in Q2 2025, prime retail spaces are sitting empty. This paradox suggests that while demand is generally stable, the specific appeal and pricing of certain locations are being re-evaluated by the market².

This situation is further complicated by a slight year-on-year decrease in average asking rents for retail space, now at USD 53.36/sqm/month. While this indicates a softening in some segments, it’s essential to note that future supply, estimated at 38,000 sqm in 2025, is largely concentrated in the Central Business District (CBD), potentially impacting rents in that core area².

Who Rents This Property Type Here?

International brands are actively seeking a foothold or expanding their presence in Ho Chi Minh City, contributing significantly to retail space demand. These global players are often looking for flagship locations to establish their brand identity in the Vietnamese market².

Domestic businesses are also growing, with some expanding their leasing requirements into less central districts. However, there’s a notable trend of brands in entertainment, dining, fashion, beauty, and health returning premises to landlords. This suggests a strategic shift, possibly towards online sales integration or a re-evaluation of physical store footprints in response to changing consumer behavior². The growing middle class remains a key demographic, underpinning demand in sectors like F&B, fashion, and beauty³.

Pricing and Demand

Average asking rents for retail space in Ho Chi Minh City saw a slight decrease of 3.32% year-on-year, settling at USD 53.36/sqm/month in Q2 2025. This trend is more pronounced in specific central districts, with shophouse rental prices in District 1 falling by an average of 17-20% and in District 5 by 25-30% compared to the previous year².

Conversely, some areas like Phu My Hung in District 7 still command high rental prices, with landlords showing little willingness to reduce them significantly, despite visible vacancies. This price disparity highlights the importance of location-specific analysis. Demand remains strong, fueled by international tourism and the expansion of both global and local brands, with some prime mall locations even reporting waiting lists².

Best Neighborhoods

What matters in practice: Citywide averages help with pricing, but tenants do not rent “the city average.” They rent a building, a commute, and a specific daily routine.

District 1 continues to be the most sought-after, albeit expensive, location for retail rentals. Despite some vacant prime properties, its high foot traffic and prestige make it a top choice for many brands¹².

District 2, particularly the Thao Dien area, is attracting attention due to its significant expat population and ongoing development of luxury residential projects, leading to increased demand for diverse retail and F&B options⁵⁴. District 7’s Phu My Hung area, while seeing visible vacancies at the base of residential buildings, maintains high rental expectations from landlords². Binh Thanh district is emerging as a viable option, offering modern developments and proximity to District 1 at potentially more accessible price points². District 3 offers a compromise, balancing location with cost-effectiveness compared to District 1².

Listing Strategy

Given the current market, focusing on prime locations with high foot traffic is still key, even if adjacent spaces are vacant. Highlight the unique potential of your shophouse for specific business types, such as F&B, fashion boutiques, or showrooms, to attract targeted tenants².

Be prepared to offer flexible lease terms, rental incentives, or reduced deposits. Leveraging online property portals and specialized commercial real estate agencies will be crucial to reach a wider audience. Consider how your space can accommodate both traditional retail and modern business models, including those that integrate online sales².

Operations and Screening

Understand the significant price differences between central and non-central areas. Adjust your rental expectations and marketing accordingly. Be mindful of the growing influence of online sales on traditional retail demand for shophouses².

Landlords may need to offer incentives like longer lease terms or flexible payment schedules to secure tenants. The market is evolving due to changes in consumer behavior, impacting the viability of traditional retail spaces. If prolonged vacancy becomes a concern, consider the potential for repurposing the retail space for alternative uses².

Local Pitfalls

One significant pitfall is the stark price disparity between prime central districts and other areas. Landlords in locations like District 1 and District 5 are seeing rents drop significantly, while those in areas like Phu My Hung (District 7) are holding firm, creating a disconnect in market expectations².

Another challenge is the impact of e-commerce and shifting consumer habits. While some sectors thrive, others are scaling back physical retail presence. This necessitates a flexible approach to leasing and potentially adapting the space to meet evolving business needs².

Frequently Asked Questions

What are the current rental price trends for shophouses in Ho Chi Minh City? Rental prices for shophouses in central districts like District 1 and District 5 have decreased significantly year-on-year, though prices in areas like Phu My Hung remain high. This indicates a bifurcated market where location and specific property appeal heavily influence pricing².

What is the occupancy rate for retail spaces in Ho Chi Minh City? Retail occupancy in HCMC reached 93.6% in Q2 2025, indicating stable overall demand despite some vacant prime locations. This suggests that while specific spaces may be struggling, the broader retail market remains healthy².

Which districts are most popular for retail and shophouse rentals? District 1 remains a prime location despite high rents and some vacancies. Areas like District 2 (Thao Dien) and Binh Thanh are also seeing development and demand, driven by residential growth and specific demographic appeal².

Why Hausive Fits This Workflow

If you are managing shophouse units in Ho Chi Minh City, Vietnam, Hausive is the property management software that keeps leasing, rent collection, maintenance, and owner reporting in one place. It is a better fit when you want faster follow-up, cleaner records, and less day-to-day thrash as listings, tenants, and owners all need answers at once.