The Artemis Shopping Center in Thanh Xuan District has for long been deserted despite its prime location with facades on four busy streets, Truong Chinh, Ton That Tung, and Le Trong Tan.
Retail space is only around 45% occupied, with most tenants being banks at the front of the building, according to property consultancy Avison Young.
A security guard on the ground floor said: “The premises are regularly cleaned, but no new tenants have moved in.”
A fruit store at the front of the building on Ton That Tung Street is in the process of relocating. Stores inside the mall have gradually closed due to low footfall.
Kim Nhung, an office worker in the building, said most visitors shop at the Top Market supermarket in the basement.
The building, opened in 2017, has 27 floors, two of them commercial, six with offices and 19 of them residential.
Another mall, the Discovery Complex in Cau Giay District opened in 2018 next to a railway station, has a vacancy rate of 80%.
Only the ground and top two floors are occupied by a few tenants while the lights, elevators and escalators on the other floors do not work. It consists of eight floors, each with 20 shops for lease.
It is part of a mixed-use complex of the same name that also offers residential and office spaces.
Most stores in the basement have shuttered after a Lotte Mart supermarket vacated it months ago. The lack of tenants has plagued the mall for the last two to three years.
A spokesperson for Kinh Do TCI Group, its owner, said the occupancy rate failed to meet expectations due to shifting consumer behavior.
The rise of online shopping has reduced footfall in malls since many retailers have scaled down operations due to the economic downturn caused by the Covid-19 pandemic.
Older malls also face competition from new ones that offer better incentives to attract tenants.
All tenants on the fifth floor, which used to be a food court, have vacated, with some leaving their furniture and equipment behind.
The floor has been locked and cannot be accessed by elevators.
Visitors to the mall can only take the elevator to the seventh and eighth floors, where a seafood restaurant and gym are still in operation.
A restaurant on the fifth floor left behind all its tables and chairs, which are now covered in a thick layer of dust.
Kinh Do TCI said if tenants who move out do not take any of their stuff, it would notify them before liquidating the assets.
It is considering restructuring the mall to cater to modern consumer requirements, focusing on entertainment food to boost competitiveness and attract long-term tenants.
A mall on Nguyen Trai Street in Thanh Xuan District too was once a major hub for entertainment, dining and shopping.
But business has dwindled, even on weekends, with only people living in apartments on its upper floors and surrounding areas now visiting it.
Nguyen Hoai An, senior director at property consultancy CBRE Hanoi, said this situation has become increasingly common, even for malls in prime locations.
Most have typically been around for seven to 10 years, making their layouts and store designs outdated. But owners are unlikely to renovate them if they have no anchor tenants, she said.
On the second floor of the mall, many storefronts display banners seeking tenants.
An said the lack of entertainment options, events and unique experiences has made many old shopping spaces feel dull.
On the other hand, newer ones often invest a lot of money in creating fresh experiences and attractive marketing strategies to draw visitors, she noted.
Tenants have also been voting with their feet at the Mipec Tower, a decade-old shopping mall in Dong Da District.
An suggested that developers should renovate to improve shopping spaces and amenities and reconsider the types of stores to lease out to.
"The key to retaining brands and consumers lies in understanding the target audience of each shopping mall.
“Developers must reposition their brands to remain competitive in the market."
