Hanoi Figures Q1 2023

April 27, 2023

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The market is bracing itself against unprecedented headwinds

Office: Due to the prevailing economic challenges, the office market in Hanoi witnessed an increase in vacancy rates for both Grade A and B offices.

Retail: In Q1 2023, no new retail supply has been recorded in Hanoi market. Asking rents in both CBD and non-CBD area remain stable, compared to the last quarter. Vacancy rates citywide remained stable q-o-q in CBD area while slightly increased in non-CBD area. Looking forward, rents is anticipated to continue to rise but at a slower pace. Concerns about continuing inflationary pressures may put pressure on both consumer spending and asking rents of the retail market.

Condominium: In the first quarter of 2023, there were approximately 2,000 condominium units launched in Hanoi, down 43% q-o-q and 44% y-o-y. This decline is because of the cautious sentiment of both developers and buyers since the market continues to be affected by macro factors.

Industrial: The industrial market recorded many positive signals after Vietnam reopened the borders. The market expects strong pipeline over the next three years.