Hanoi leads real estate recovery

According to Savills Vietnam's Q3/2025 report, the Hanoi retail market continues to thrive with simultaneous increases in both occupancy and rental prices.

Total supply reached 1.8 million square meters, with shopping malls still dominating. Occupancy increased by 1 percentage point year-on-year to 85%, thanks to shopping malls flexibly repositioning their business models, focusing on young customers.

Ground floor rents in all areas increased by an average of 3%, reaching VND1.3 million/m²/month. The central area recorded the highest increase, while non-central areas such as Cau Giay, Thanh Xuan and Ha Dong maintained a steady increase. Thanks to increasingly complete transport infrastructure – especially metro lines – these areas are gradually narrowing the rental price gap with the central area and becoming attractive destinations for many big brands.

Savills said the food, fashion and lifestyle sectors continue to drive demand for new premises, reflecting modern consumer trends and the shift of the younger generation towards sustainable service experiences.

By the end of 2025, Hanoi is expected to welcome more than 84,000 m² of retail space from three new projects. In the period 2026 – 2028, supply may increase by about 330,000 m², mainly in the Starlake area. However, Savills warns that the large number of handovers in 2027 – 2028 could increase competition and pose a risk of oversupply if projects do not have a sufficiently differentiated positioning strategy.

Along with the recovery of the retail market, the Hanoi apartment segment also recorded positive developments. In the third quarter of 2025, 6,300 new apartments were offered for sale – an increase year-on-year, although a slight decrease compared to the previous quarter. The number of units sold reached 7,300, an increase both quarter-on-quarter and year-on-year, with an absorption rate of over 80%. Buyers increasingly prioritize new projects thanks to modern design, synchronous utilities and flexible payment policies.

Primary prices continue to increase, especially in the mid- and high-end segments. In the first 9 months of the year, apartments priced above VND4 billion accounted for the majority of transactions, while the market had almost no products priced below VND2 billion. The lack of affordable housing supply has made satellite cities around Hanoi expected to become the "blooming spots" of the housing market in the coming period.

To solve the housing problem for low- and middle-income earners, Hanoi is accelerating the implementation of social housing and worker housing projects to increase housing accessibility and stabilize the market. In the fourth quarter of 2025, the market is expected to welcome about 8,900 new apartments, mainly in the Class B segment.

Mr. Mathew Powell, Director of Savills Hanoi, said that the serviced apartment segment is also benefiting from the wave of foreign investment. The total supply reached nearly 6,400 units, the average occupancy rate was 87%, up 1 percentage point quarter-on-quarter. Rents were stable but increased by 4% over the same period, in which class B apartments had the smallest increase.

Savills said that after expanding its administrative boundaries, Hanoi has risen to third place in the country in attracting FDI, with a total registered capital of 3.9 billion USD, just behind Bac Ninh and Ho Chi Minh City. This capital flow has led to an increase in foreign experts - the main customer group of the Class A serviced apartment market.

In the fourth quarter and the coming years, Hanoi will continue to witness a wave of new projects. It is expected that about 15 serviced apartment projects will be launched, providing more than 2,200 units, mainly in the West and secondary areas. International brands will account for about 76% of the total new supply, promising to raise the quality and management standards of the capital's real estate market.

Source: https://daibieunhandan.vn/ha-noi-dan-dau-phuc-hoi-bat-dong-san-10394154.html