SUPPLY: ONE NEW PROJECT IN THE WEST
In Q1 2025, Hanoi’s retail market welcomed the entry of one new department store from Cau Giay District, namely Aeon Mall Xuan Thuy, adding over 13,600 sq.m of retail NLA to the Hanoi market. The Aeon Group has established its ninth shopping center in Vietnam, further enhancing its footprint in the country's retail sector.
DEMAND: RECORDED A SLIGHT DECREASE
In Q1 2025, the overall occupancy rate reached 85.5%, reflecting a slight decrease of 0.11 percentage points QoQ and 0.04 percentage points YoY. Despite strong absorption rates in projects located in the Central Business District (CBD) and secondary areas, particularly those developed by foreign developers such as Lotte, Aeon and Central Retail, the overall occupancy rate experienced a minor decline. Significant vacancy rates are observed in retail podium areas outside the CBD, attributed to their inflexible and overly traditional model, which has failed to attract customers during the current economic downturn.
RENT: WITNESSED A SLIGHT INCREASE
The average asking gross rent of the ground floor (GF) achieved US$ 46.4/sq.m/month, up 3.3% QoQ and 5.7% YoY, mainly driven by the annual rent escalation at multiple projects in Secondary and West submarkets.
OUTLOOK: THE WEST AREA TO BECOME THE NEW RETAIL HUB
Over the next three years (2025–2027), approximately 16 retail projects are projected to add 253,000 square meters of retail space, with the West area accounting for up to 41% of the anticipated supply. Retail developers are also expanding into neighboring provinces, as evidenced by projects such as Vincom Megamall Ocean Park 2 in Hung Yen Province and Aeon Mall Ha Long in Quang Ninh Province, highlighting the significant development potential within the retail sector.
Learn more by download our most recent Hanoi Retail MarketBeat.
