Hanoi retail market records positive absorption amidst new mall launch

Retail absorption hit 26,700sqm in the first quarter.

The opening of Hanoi Centre helped drive strong retail leasing activity in Hanoi during Q1 2026, generating market-wide net absorption of approximately 26,700 sqm, according to JLL.

The newly opened project contributed 31,000 sqm of absorption in the City Centre and added around 42,000 sqm of prime retail space to the market. JLL said demand remained anchored by food and beverage, fashion, lifestyle and service operators, with international brands including Zara, Urban Revivo, Victoria's Secret, Kidzoona and Pop Mart securing space.

Prime retail supply increased to 678,000 sqm following the completion. The additional stock pushed City Centre vacancy to 14.0%, up 10 percentage points year-on-year, while City Fringe vacancy rose to 7.0%.

Ground-floor asking rents in the City Centre fell 1.4% quarter-on-quarter to USD132.5 per sqm per month as Hanoi Centre adopted competitive leasing rates. In contrast, City Fringe rents edged up 0.3% to USD54.9 per sqm per month.

JLL expects a wave of new prime retail developments scheduled for 2027 and 2028 to support long-term growth, with F&B, lifestyle and entertainment concepts continuing to drive demand.