Hanoi’s retail property market showed signs of recovery in the third quarter of this year, fueled by strong demand for retail podiums and a boost in tourism, according to a recent report from real estate consultant Savills Vietnam.

Overall retail stock increased  by 2% quarter-on-quarter and year-on-year with the addition of one new shopping center and two retail podiums.

Over the past five years, the capital city's stock of retail floor space increased by 3% annually, on average.

Shopping centers accounted for 63% of total supply in the third quarter, or 1.14 million sq m. Meanwhile, retail podiums and department stores comprised 17% and 3%, respectively.

Gross ground floor rents dipped slightly by 1% quarter-on-quarter but rose 6% year-on-year. In the central business districts (CBD), rent stood at VND3.4 million ($133) per sq m per month.

Occupancy remained stable quarter-on-quarter but dropped by 1 percentage point to 85%.