What are the rental prices at Hanoi’s popular downtown ‘Shark Jaw’ building ahead of its demolition?

The six-story structure at the top of Hoan Kiem Lake, which gets its moniker because of its shape, is to be replaced by a new community area with underground levels.

Built in 1993, the building, managed by the Hanoi Transport Corporation, is mostly leased by restaurants and coffee shops as it offers a panoramic view of the lake, a huge attraction for both locals and tourists.

'Shark Jaw' building in Hoan Kiem District, Hanoi. Photo by VnExpress/Giang Huy

Its monthly rentals are $150-200 per square meter for the ground floor and $100 from the second floor up, according to property consultancy Avison Young.

But despite having among the highest rents in the downtown Hoan Kiem District, it always has a waiting list of tenants.

The building’s tenants include a prominent fashion and coffee brand each. They have been there for years, even during challenging times such as the Covid-19 pandemic.

An Avison Young expert said: "Major companies desire to be present in the building to boost their visibility and brand prestige. They are willing to invest several times more than they would elsewhere."

Thanks to the building, rents in the vicinity have also remained high for years, according to Le Xuan Truong, a veteran broker operating in central Hanoi.

On Dinh Tien Hoang Street, where Shark Jaw is located, he said a 72-square-meter building with four floors is being offered for $10,000 a month.

A five-story townhouse measuring 40 square meters per floor nearby is listed at $6,000, he said.

"Few places are available in this area because, despite high rents, businesses are willing to pay for brand recognition."

Another reason for the building’s high rents is its proximity to high-end shopping street Trang Tien, named among the 20 most expensive retail locations in the Asia-Pacific region in 2024 by multinational property consultancy Cushman & Wakefield.

Trang Tien exceeded the most expensive streets in China’s Guangzhou, Malaysia’s Kuala Lumpur and Thailand’s Bangkok.

Its rents start at $328 per square meter, Avison Young data shows.

It is home to global luxury brands like Gucci, Rolex, Hublot, Versace, Dolce & Gabbana, and Burberry, and attracts both domestic and foreign tourists while also having historical and cultural significance, the consultancy said.

Current retail rents in Hanoi have increased by 40% from the same time last year, with shopping center rentals seeing the highest growth followed by department store and ground-floor retail rents, according to consultancy Savills.

Matthew Powell, director of Savills Hanoi, said despite the growing presence of luxury brands in Vietnam, the market remains modest compared to Bangkok or Singapore.

He pointed to the international trend of major brands moving away from malls to establish standalone stores in prominent shopping areas like Nanjing Road in Shanghai.

Powell said prime street-front properties would continue to be highly sought after despite high rents.