Hanoi Centre drives positive net absorption in H1 2026

• The recent opening of Hanoi Centre drove demand, with City Centre recording net absorption of around 5,000 sqm in Q2 and 35,900 sqm in H1 2026. In addition, City Fringe added 3,500 sqm, resulting in market-wide net absorption of nearly 8,400 sqm for the quarter.
• Demand was anchored by F&B and fashion, with continued momentum from lifestyle and service concepts. Hanoi Centre exemplified this, successfully securing a strong mix of international brands, such as Uniqlo, Pleats Kora, and Urban Revivo.

Vacancy rates decline across submarkets

• Hanoi’s prime retail supply reached 678,000 sqm NLA in Q2 2026, following the opening of Hanoi Centre in Q1 2026. Strong absorption of this new supply continued to push the City Centre vacancy rate down 5.0 ppts q-o-q, to 9.0% in Q2 2026.
• In City Fringe, the vacancy rate declined 0.6 ppts q-o-q, to 6.4%, and remained 0.9 ppts lower on a yearly basis, supported by diverse demand and flexible landlord leasing strategies.

Rental growth shows marginal upticks amid heightened competition

• Influenced by new supply, the average gross asking rent of ground floor in City Centre maintained its upward trajectory, albeit at a more moderate pace of 0.4% y-o-y, reaching USD 133.1 per sqm per month.
• Despite economic uncertainties, the City Fringe showed resilience with 2.1% annual increase in gross asking rent, settling at USD 55.4 per sqm per month.

Outlook: An upcoming surge of quality supply is anticipated to bolster the market through 2028

• In second half of 2026, City Centre supply will remain unchanged. City Fringe will see continued development of retail projects, including Westlake Square Hanoi, Thiso Mall West Westlake and Vincom Mega Mall Global Gate.
• F&B, lifestyle and entertainment sectors, particularly business models targeting Gen Z and children, are expected to maintain sustainable growth. Meanwhile, increasing competitive pressure should drive tenant mix innovation and creative business model development.