Shophouses and million-dollar townhouses are sluggish but new supply is still increasing strongly
A series of million-dollar shophouses and townhouses in Hanoi are closed and unoccupied, while new supply has skyrocketed in the first half of 2025.
Million dollar shophouses closed silently, no tenants
Once a "hot" segment sought after by investors thanks to the ability to both live in and do business or rent out premises, commercial townhouses (shophouses) in the Hanoi real estate market are now witnessing a deserted and sluggish scene.
In Him Lam urban area (Ha Dong ward), many shophouses with wide frontage and prime locations on To Huu street have been left vacant for many years. Most of them have signs for rent, only a few are used as parking lots or restaurants, making the whole area deserted.
The selling price of shophouses here ranges from 20-40 billion VND (equivalent to 200-440 million VND/m2), while the rental price for completed units is about 50-60 million VND/month and for unfinished units is from 25-30 million VND/month.
A similar situation also occurred at Galaxy Van Phuc urban area (Ha Dong ward), where a series of shophouses on To Huu street were abandoned, with signs for rent for many years but still "closed doors". Although valued at 16 to 45 billion VND/unit, many shophouses worth millions of USD here have degraded, with weeds and garbage piling up.
Duong Noi urban area is no exception to this trend, with many million-dollar villas and townhouses falling into disrepair and overgrown with grass.
Notably, despite the prolonged sluggishness, the price history tool of the specialized website batdongsan shows that the selling price of low-rise houses in these areas has still increased from 30 to more than 40% compared to the same period last year.
Low-rise housing supply in Hanoi continues to increase sharply
In contrast to the gloomy reality of existing shophouses and townhouses, the new supply of low-rise housing in Hanoi continued to increase sharply in the first 6 months of 2025.
According to CBRE's report, in the second quarter of 2025, the Hanoi market recorded more than 1,000 low-rise houses for sale, down 32% compared to the first quarter but 5 times higher than the same period in 2024. In the first 6 months of the year, the total supply of new low-rise houses reached more than 2,500 units, an increase of nearly 9 times compared to the same period in 2024.
Although the number of units launched for sale decreased, the number of new projects increased, with 5 projects being deployed in more diverse areas such as Tay Ho, Long Bien, Gia Lam and Dan Phuong. This shows the trend of expanding development space and the entry of many new investors into the market.
Along with supply, primary selling prices also continued to increase, with an average of about VND230 million/m2 of land (excluding VAT, maintenance costs and discounts), a slight increase of 1.5% compared to the previous quarter.
CBRE representative said that the appearance of projects located near the center has contributed to pushing up prices, with many products offered for sale at over 200 million VND/m2.
In terms of liquidity, the second quarter of 2025 recorded more than 2,600 low-rise housing transactions, exceeding the newly launched supply in the same period. This development shows that demand for real estate attached to land remains stable and continues to be favored by buyers.
Ms. Nguyen Hoai An, Director of CBRE Hanoi branch, expects the total supply of low-rise houses for sale in Hanoi in 2025 to reach more than 6,300 units, of which the second half of the year will contribute nearly 3,800 units.
In particular, some low-rise projects that were temporarily suspended are being restarted and preparing to open the next phase for sale.
