Hanoi retail absorption strengthens as new supply draws international brands

Absorption in the prime market hit 8,400 sqm in Q2.

Hanoi's prime retail market recorded nearly 8,400 sq m of net absorption in the second quarter of 2026, with the recently opened Hanoi Centre providing a major boost to demand, according to JLL.

City Centre recorded around 5,000 sq m of net absorption during Q2 and 35,900 sq m in the first half, while City Fringe contributed a further 3,500 sq m during the quarter. Food and beverage and fashion retailers remained key sources of demand, alongside lifestyle and service concepts.

JLL highlighted Hanoi Centre as an example of the market's ability to attract international occupiers, with brands including Uniqlo, Pleats Kora and Urban Revivo taking space.

Prime retail supply reached 678,000 sq m of net lettable area in Q2 following Hanoi Centre's opening in the first quarter. Strong absorption pushed the City Centre vacancy rate down 5 percentage points quarter on quarter to 9.0%. City Fringe vacancy also declined, falling 0.6 percentage points to 6.4%, and stood 0.9 percentage points below its year-earlier level.

Rental growth remained positive but relatively moderate in City Centre amid the increased supply and competition. Average ground-floor gross asking rents rose 0.4% year on year to USD 133.1 per sq m per month. City Fringe proved more resilient, with rents increasing 2.1% annually to USD 55.4 per sq m per month, JLL said.

The consultancy expects City Centre supply to remain unchanged during the second half of 2026, while City Fringe will see further projects including Westlake Square Hanoi, Thiso Mall West Westlake and Vincom Mega Mall Global Gate.

JLL expects food and beverage, lifestyle and entertainment concepts to continue supporting demand, particularly businesses targeting Gen Z and children. At the same time, rising competition is likely to encourage landlords and retailers to innovate their tenant mixes and business models, according to the consultancy.