Hanoi (VNA) – The capital’s retail market is showing signs of strong recovery, with the Starlake urban area in Tay Ho Tay (the west of West Lake) emerging as a new highlight thanks to its integrated planning, improving infrastructure and growing interest from international brands.
According to the latest data from Savills Vietnam, Hanoi’s retail market continues to improve in both demand and rental performance. The city’s total modern retail supply now stands at around 1.7 million square metres, with shopping centres accounting for the largest share. Market-wide occupancy has reached approximately 85%, supported by repositioning and refurbishment at many existing malls. Average ground-floor rents have risen by about 6% year on year, led by central areas, while non-central ones have recorded steady rises.
Notably, suburban locations are increasingly becoming important destinations for retail development. With abundant land, coordinated planning and the emergence of new urban areas, they are playing a more prominent role in the capital city’s retail landscape.
In the premium segment, luxury brands, previously concentrated along downtown streets in Hoan Kiem, are gradually shifting towards professionally managed malls in new urban zones. This trend reflects changing consumer behaviour as shoppers increasingly favour integrated retail spaces combining shopping, entertainment and services.
Savills forecasts that by 2026, Hanoi could welcome approximately 300,771 square metres of additional retail space from 11 new projects. Between 2027 and 2028, a significant share of new supply is expected to cluster in the Tay Ho Tay area, triggering a new wave of competition among retail developments.
Against this backdrop, the Starlake Tay Ho Tay urban area is becoming as a fresh retail destination thanks to its strategic location and gradually maturing urban ecosystem.
Matthew Powell, Director of Savills Hanoi, said growing interest from major brands highlights the destination’s rising commercial potential. Several international retailers are currently planning expansion in the capital, including Takashimaya, which has operated in the country since 2016 with a flagship mall in Ho Chi Minh City, and Thiso Mall. Notably, both projects are concentrated in the Tay Ho Tay area.
According to him, Starlake’s appeal stems from the urban development foundation established in recent years. The area has seen a growing number of high-quality residential projects, new office buildings and hotel developments. Several large-scale facilities are also underway, including a research and development centre of Samsung.
At the same time, transport infrastructure, landscaping and park systems continue to be upgraded. Several ministries and government agencies are expected to relocate their headquarters there in the future, helping shape a new administrative and economic hub of the capital.
These developments are creating a comprehensive urban ecosystem that attracts residents, office workers, business travellers and tourists alike, forming a diverse customer base for retail activities. Savills Vietnam also noted that Starlake Tay Ho Tay remains in the early stages of its development cycle, with substantial long-term growth potential./.
VNA
