Tay Ho Tay emerges as Hanoi's new retail hotspot

Tay Ho Tay emerges as Hanoi's new retail hotspot

Hanoi's retail market is showing strong momentum, with total sales of goods and consumer services reaching $6.86 billion in the first two months of 2026, up over 13 per cent on-year.

Hanoi is attracting leading brands amid a northward expansion by major retail players. Retail sales of goods accounted for $4.5 billion, or 65.8 per cent of the total, up 15.8 per cent on-year.

Experts note that the recovery of domestic consumption and improved consumer confidence are creating a sustainable demand base, supporting continued growth in the retail sector.

At the same time, Hanoi is becoming an increasingly attractive market for international brands, driven not only by strong economic growth but also by its young population and expanding middle class.

A rendering of Westlake Square, a key beneficiary of Hanoi's northward retail expansion. Photo: Toshin Development

Savills Vietnam’s first quarter of 2026 Market Report indicates that total modern retail supply in Hanoi reached approximately 1.7 million square metres, with shopping centres continuing to dominate.

Occupancy stood at 89 per cent. Outer areas are gradually emerging as key destinations, with a growing concentration of projects reshaping the city’s retail landscape.

According to Avison Young – a global commercial real estate services company – Hanoi’s retail market is increasingly shifting towards depth over scale, focusing on operational quality and enhanced customer experience rather than rapid supply expansion. This trend has accelerated the northward expansion strategies of major brands.

Alongside this shift, location strategies are also evolving. While central locations were previously prioritised for their established footfall, many brands are now turning to master-planned urban areas with long-term growth potential.

Areas with strong fundamentals such as good location, integrated planning, and a well-developed ecosystem like Starlake are increasingly favoured, creating new momentum for premium retail developments.

The ‘northward expansion’ trend is evident in the strategies of several international retailers, notably Takashimaya, the premium Japanese retail group, which is advancing its expansion into the Hanoi market.

Following its success in Ho Chi Minh City with Saigon Centre, Takashimaya is reportedly set to expand into Hanoi, with a planned location at Westlake Square Hanoi, a Grade A commercial development in the Tay Ho Tay area.

This expansion is driven by Toshin Development, the real estate developer of the Takashimaya Group. The project reflects Toshin Development’s long-term vision of developing commercial assets in locations that combine strong positioning, comprehensive planning, and a well-established urban ecosystem such as Starlake.

Westlake Square Hanoi derives its appeal from its prime location in Tay Ho Tay, envisioned as Hanoi’s future administrative, technology, and commercial hub.

The area is witnessing rapid development of office buildings, hotels, research and development centres, and high-end residential projects.

At the same time, ongoing improvements in infrastructure, landscape, and public parks are attracting residents, tourists, and a growing base of highly skilled professionals, forming a diverse customer base for future retail activities.

Westlake Square Hanoi is located in Tay Ho Tay, an emerging focal point of the capital's retail market. Photo: Toshin Development

Phase 1 of Westlake Square Hanoi comprises a 10-storey tower with a total gross floor area of approximately 43,000 sqm, expected to be operational from the third quarter of 2027. The project will host the first Takashimaya Department Store in the capital, marking the brand’s official entry into Hanoi.

Mai Vo, head of Retail Services at CBRE Vietnam, commented, “Starlake West Lake West is undergoing rapid transformation with the emergence of a new retail destination for young consumers, bringing together premium lifestyle trends and next-generation retail concepts. In the coming period, the launch of Westlake Square Hanoi, developed by Toshin Development, together with the presence of Takashimaya, is expected to become a key catalyst, positioning Tay Ho Tay as Hanoi’s next retail hub.”

A representative from Toshin Development added, “The introduction of Westlake Square Hanoi will contribute to a broader transformation of Hanoi’s premium retail market, aligning with long-term urban growth and evolving consumer demand.”

Westlake Square Hanoi emphasises green design and multi-layered experiences. Photo: Toshin Development

With strong long-term growth drivers, Hanoi’s premium retail market is expanding in scale and being redefined spatially, with new growth poles emerging beyond the traditional central districts.

At the forefront of this shift is Westlake Square Hanoi - the project bringing the first Takashimaya Department Store to the capital. Once operational, it is expected not only to add high-quality retail supply but also to set a new benchmark for retail and commercial development in Starlake Tay Ho Tay and Hanoi as a whole.

VIR