Shophouses and million-dollar townhouses are sluggish but new supply is still increasing strongly.

A series of million-dollar shophouses and townhouses in Hanoi are closed and unoccupied, while new supply has skyrocketed in the first half of 2025.

A series of million-dollar shophouses are closed and silent, with no tenants.

Once a "hot" segment sought after by investors thanks to the ability to both live in and do business or rent out premises, commercial townhouses (shophouses) in the Hanoi real estate market are now witnessing a deserted and sluggish scene.

In Him Lam urban area (Ha Dong ward), many shophouses with wide frontage and prime locations on To Huu street have been left vacant for many years. Most of them have signs for rent, only a few are used as parking lots or restaurants, making the whole area deserted.

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The asking price for shophouses here ranges from 20-40 billion VND (equivalent to 200-440 million VND/m2), while the rental price for completed units is around 50-60 million VND/month and for unfinished units it is 25-30 million VND/month.

A similar situation also occurred at the Galaxy Van Phuc urban area (Ha Dong ward), where a series of shophouses on To Huu street were abandoned, with signs for rent for many years but still "closed". Although valued at 16 to 45 billion VND/unit, many shophouses worth millions of USD here have degraded, with weeds and garbage piling up.

The Duong Noi urban area is no exception to this trend, with many million-dollar villas and townhouses left vacant, dilapidated, and overgrown with weeds.

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Notably, despite the prolonged sluggish market, the historical price data from the real estate website batdongsan.com shows that the asking prices for low-rise houses in these areas have still increased by 30 to over 40% compared to the same period last year.

Low-rise housing supply in Hanoi continues to increase sharply

In contrast to the gloomy reality of existing shophouses and townhouses, the new supply of low-rise housing in Hanoi continued to increase sharply in the first 6 months of 2025.

According to a CBRE report, in the second quarter of 2025, the Hanoi market recorded more than 1,000 low-rise houses launched for sale, a 32% decrease compared to the first quarter but five times higher than the same period in 2024. Cumulatively, in the first six months of the year, the total supply of new low-rise houses reached over 2,500 units, nearly nine times higher than the same period in 2024.

Although the number of units launched decreased, the number of new projects increased, with 5 projects being developed in more diverse areas such as Tay Ho, Long Bien, Gia Lam, and Dan Phuong. This indicates a trend of expanding development space and the entry of many new investors into the market.

Along with the supply, primary market selling prices also continued their upward trend, averaging around 230 million VND/m2 of land (excluding VAT, maintenance fees, and discounts), a slight increase of 1.5% compared to the previous quarter.

According to a CBRE representative, the emergence of projects located near the city center has contributed to the rise in prices, with many properties being offered at over 200 million VND/m2.

In terms of liquidity, the second quarter of 2025 recorded more than 2,600 transactions for low-rise houses, exceeding the supply of new properties launched during the same period. This development shows that demand for land-attached properties remains stable and continues to be favored by buyers.

Ms. Nguyen Hoai An, Director of CBRE Hanoi branch, expects the total supply of low-rise houses for sale in Hanoi in 2025 to reach more than 6,300 units, of which the second half of the year will contribute nearly 3,800 units.

In particular, some low-rise projects that had been temporarily suspended are being restarted and preparing to open the next phase for sale.

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Source: https://baonghean.vn/shophouse-lien-ke-trieu-do-e-am-nhung-nguon-cung-moi-van-tang-manh-10302858.html