Retail market remains resilient with stable leasing demand

• In Q2 2024, Hanoi’s prime retail market recorded a net absorption of approximately 120 sqm. Both the City Centre and City Fringe areas achieved positive net absorption thanks to new leasing activities.
• Notable leasing transactions include a Mat Viet store, which opened at Vincom Ba Trieu, and popular F&B brands Highlands and Dookki, which began operations at The Linc, serving the growing demand of the developing residential area.

No new completions of Prime retail projects

• Hanoi’s Prime retail supply remained unchanged, standing at around 671,200 sqm, as no new projects were completed in Q2 2024. In particular, the supply in the City Centre and City Fringe stayed at 55,000 sqm and 616,200 sqm, respectively.
• In Q2 2024, City Centre’s vacancy fell to 3.7%, a decrease of 0.2 ppts q-o-q, driven by sustained demand for prime mall spaces and limited new supply. In the City Fringe, the vacancy rate remained stable at 6.6% during the quarter.

Stable rents across the board

• Hanoi’s City Centre and City Fringe areas maintained relatively stable net effective rents in Q2 2024, at USD 65.4 and 33.9 per sqm, per month, respectively.
• The City Centre’s net effective rent increased 0.5% y-o-y. The substantial annual increase of 7% in City Fringe’s net effective rent was due to the new high-quality developments and highlights the potential for a large consumer base in this area.

Outlook: New supply and demand to surge in the City Fringe

• By end-2024, City Centre is anticipated to maintain its current supply level, while the City Fringe area is projected to experience an expansion of around 20,000 sqm, driven by the completion of The Heritage in the West Lake area.
• At end-2024, net rent in the City Centre is set to increase marginally by 4.8% y-o-y, with the City Fringe gaining 7.1% annual growth, particularly after the introduction of new high-quality supply in the West Lake area in 2024.