Million-dollar shophouses and townhouses are experiencing sluggish sales, but new supply continues to increase sharply.
A series of million-dollar shophouses and townhouses in Hanoi are sitting closed and unrented, while new supply is expected to surge in the first half of 2025.
A series of million-dollar shophouses sit silently closed, devoid of tenants.
Once a highly sought-after segment by investors due to their potential for both residential and commercial use or rental income, shophouses in the Hanoi real estate market are now experiencing a period of emptiness and sluggish sales.
In the Him Lam urban area (Ha Dong ward), many shophouses with wide frontages and prime locations on To Huu Street have been vacant for years. Most display "for rent" signs, with only a few being used as parking spaces or restaurants, leaving the entire area deserted.
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 is occurring in the Galaxy Van Phuc urban area (Ha Dong ward), where numerous shophouses along To Huu street are left vacant, displaying "for rent" signs for many years but remaining closed. Despite being valued at 16 to 45 billion VND per unit, many shophouses worth millions of USD here have deteriorated, with weeds and garbage piled 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.
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.
The supply of low-rise housing in Hanoi continues to increase sharply.
In contrast to the bleak situation of existing shophouses and townhouses, the new supply of low-rise housing in Hanoi continued to increase sharply in the first six 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, forecasts that the total supply of low-rise houses for sale in Hanoi throughout 2025 will reach over 6,300 units, with nearly 3,800 units contributing in the second half of the year.
In particular, several low-rise projects that had been temporarily suspended are being restarted and are preparing for the next phase of sales.