According to Lao Dong reporters, many premises on streets in central districts of Hanoi such as Hai Ba Trung, Ba Dinh, Dong Da, Thanh Xuan... have recently been closed day and night, hanging up signs for rent in series.
For example, in Hai Ba Trung district, on Bach Mai street, Vong street, Ta Quang Buu street, many premises are hanging signs for rent at prices ranging from 15-75 million VND/month, depending on the area.
On Kim Ma Street, Nguyen Thai Hoc Street (Ba Dinh District), the landlord is hanging a sign for renting premises with prices ranging from 25-60 million VND/month, depending on the area.
Mr. Nguyen Huu Luan (doing business in Thanh Xuan district, Hanoi) said that his family is currently renting a 55m2 store on Nguyen Trai street, with 3 floors for 35 million VND/month.
However, Mr. Luan said that although the rental price of premises has been adjusted down from 40 million VND to 35 million VND/month, for the past half year, his family's business has been closed and has not found a suitable tenant.
Many business owners in Hanoi informed that people tend to buy goods online on e-commerce platforms because of their convenience, with discount codes, home delivery, and free refund policies.
Due to the inability to pay for rental costs, import costs, and employee salaries, many businesses and brands have been forced to transfer and return their premises in large numbers.
Many real estate experts say that from 2024 to now, many townhouses will still have difficulty finding tenants. To overcome this situation, landlords will have to adjust prices according to the mechanism, the price is more suitable for groups of tenants.
The sluggish situation of premises on many central streets of the capital will be difficult to reduce when rental prices are high, facing fierce competition from e-commerce, online sales channels, and electronic trading floors.
Regarding rental prices, data recently analyzed by CBRE Vietnam shows that in the next 3 years, it is expected that retail rental prices in central areas may increase by 7-10% and in non-central areas will increase by 2-3%. Currently, rental prices in the central area have reached nearly 280 USD/m2/month, an increase of 18.5% over the previous year.
Mr. Nguyen Chi Thanh - Permanent Vice President of the Vietnam Real Estate Brokers Association (Vars) - said that the rental townhouse segment is under fierce competitive pressure with shopping malls and e-commerce platforms.
In particular, some popular product lines such as fashion and accessories have witnessed the withdrawal from townhouses. Because instead of spending large costs on premises in beautiful locations, they have switched to renting houses in alleys to expand warehouses and focus on promotion on online channels.
