Hanoi retail occupancy rate hits 86% in central areas in Q3

The market is gradually shifting to non-central areas due to competitive rents.

In Q3 2024, Ha Noi's retail real estate market remained stable. Data from Avison Young revealed that average rental prices ranged from 37-140 USD/sqm/month in central areas and 20-88 USD/sqm/month in non-central areas. 

The occupancy rates in central and non-central areas were 86% and 78%, respectively. 

Here’s more from Avison Young:

The Diamond Plaza project, which opened this quarter, recorded a 60% occupancy rate with an average rental price of approximately 35 USD/sqm/month. The project meets the shopping, entertainment, and service needs of residents and visitors with modern amenities, including fashion, dining, healthcare, education, and banking services. 

The trend in retail leasing in Ha Noi is gradually shifting from central areas to non-central areas, where larger retail spaces are available and rental rates are more competitive. With lower rental costs and more spacious areas, many retail businesses are choosing to expand in these regions to optimise costs and enhance customer experiences. Additionally, significant infrastructure improvements in Ha Noi have further fueled this trend.

Supply and Demand

In Q3 2024, Ha Noi's retail market welcomed the opening of Diamond Plaza Le Van Luong in September, a shopping mall spanning 14,800 sqm. Along with this, the FujiMart supermarket chain also opened a new branch at the mall. The city's total retail supply now exceeds 1 million sqm, with shopping malls accounting for the largest market share. 

Later this year, Ha Noi will see another major retail project from leading Japanese retailer Aeon with the opening of Aeon Xuan Thuy. Aeon is currently expanding at an impressive pace across Vietnam. 

At the end of August, Vingroup broke ground on the National Exhibition and Convention Center, a 90ha project in Dong Anh District. This is a national key project in the trade and service sector, and upon completion, it will rank among the top 10 largest exhibition centres in the world. The facility will provide a solid platform for domestic and international businesses to network, promote trade, and advance international integration, helping Vietnam reach out to the world while attracting global attention to the country.