SUPPLY: NEW SUPPLY PIPELINES AND COMPETITIVE DYNAMICS
During the first six months of 2026, Hanoi’s retail market recorded more than 52,600 sqm of new supply, bringing total retail stock to approximately 1.44 million sqm. New completions were primarily contributed by a newly opened shopping center in Secondary area, alongside retail podiums located in the West and CBD areas. These locations benefit from well-established infrastructure and high residential density, providing favorable conditions for retail operations.
Shopping centers continued to represent the dominant retail type, accounting for approximately 85% of total stock, reflecting a sustained development trend toward large-scale, experience-integrated products. Notably, the majority of new supply was concentrated on non-CBD areas, indicating a structural shift toward emerging urban townships and community-driven consumption catchments. This trend aligns with an experience-oriented retail development strategy integrating shopping, F&B and entertainment.
DEMAND: OCCUPANCY CONTINUED TO IMPROVE
Average occupancy across Hanoi’s retail market reached 87.9% in Q2 2026 (+1.5 ppts QoQ and +2.6 ppts YoY). The quarterly improvement was primarily supported by stable absorption in the CBD and Secondary areas.
Leasing demand remained driven by key retail segments, including lifestyle, F&B, Fashion and accessories, and Entertainment, underpinning the overall improvement in occupancy. In H1 2026, the market saw several brands debuting or launching flagship stores in Hanoi, such as Bershka, Wilson, IWC Schaffhausen, Roborock, and Bach Hoa Xanh. The entry of these brands reflects continued retailer confidence in the market’s growth prospects, while also enhancing the appeal of retail schemes and supporting leasing momentum over the medium to long term.
RENT: STABLE QUARTERLY PERFORMANCE
Overall, average ground floor asking rents maintained a mild upward trend in Q2 2026. Average ground floor asking rent in Hanoi reached 51.8 USD/sqm/month (+0.8% QoQ; +10.0% YoY), reflecting a relatively balanced supply–demand dynamic in Hanoi’s retail market. Core submarkets, particularly the CBD (Hoan Kiem) and Secondary areas (Ba Dinh and Dong Da), continue to command premium rental levels, underpinned by acute land scarcity and a limited pipeline of new high-quality developments.
OUTLOOK: SUPPLY EXPANSION AND GROWING DIVERGENCE
In Hanoi, approximately 339,000 sqm of new retail supply is expected to be delivered between H2 2026 and 2028, mainly in non-central locations such as The West and Suburban areas. This pipeline is likely to intensify competition, creating short-term pressure on both rents and occupancy. Nevertheless, rents are expected to continue a gradual upward trend, supported by stable leasing demand, while prime location in core districts remains limited. Over the longer term, market performance will increasingly depend on asset quality and positioning, with well-executed retail schemes expected to outperform, driving a widening gap in both rental growth and occupancy across the market.
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