While Vietnam’s street‑front shops saw an overall decline in rents, the luxury retail market continues to demonstrate resilience and growth as brands expand selectively, according to the latest retail report ‘Main Streets Across the World’ released recently by Cushman & Wakefield.
The report highlighted that this contrast reflects luxury retailers’ selective site choices, with retail rents reaching record highs in spaces within luxury hotels. Both Hanoi and Ho Chi Minh City’s luxury segments showed comparable revenue momentum, reinforcing Vietnam’s rising status within Asia Pacific retail.
Amidst limited availability of prime floor plates, Hanoi’s luxury retail landscape is becoming increasingly bifurcated. While average street rents on Trang Tien have seen a tactical adjustment of -7% year-on-year, high-spec shopping mall and luxury hotel retail podiums within the same district (Hoan Kiem) continue to command a premium and have increased 4% year-on-year. Driven by robust demand from international brands, these prime institutional-grade spaces have seen rents trend upward, reflecting a flight-to-quality among luxury occupiers.
Mrs Hoang Nguyet Minh, Country Head of Cushman & Wakefield Vietnam, said Vietnam’s luxury retail sector is experiencing a period of dynamic growth, especially in Hanoi and Ho Chi Minh City. Amid the limited supply of prime retail space in both cities, demand from luxury brands—especially major labels from France, Italy, and South Korea—continues to rise as they seek new openings in the Vietnamese market. This supply-demand imbalance has driven rental rates upward across prime locations, including both high-street shophouses and shopping malls.
Globally, the report shows that rents grew on average at 4.2% with 58% of markets experiencing rental growth. The Americas led regional rental growth at 7.9%, driven by currency effects in South America. Europe experienced steady 4% year-on-year growth. Meanwhile rents in Asia Pacific slowed to 2.1%.
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