According to Lao Dong reporters, many central streets in Hanoi that used to be bustling with business have recently had to hang signs for transferring and leasing shops.
Ms. Tran Thi Nhung (31 years old, doing business in Hai Ba Trung district) said that due to high rental prices, she just returned her business premises on Bach Mai street at the end of December 2024.
"I have just transferred a 50m2 fashion and clothing business premises, with a rental price of 20 million VND/month. After calculating that the revenue from sales was not enough to cover the capital for importing goods, the cost of renting the premises, electricity and water... I was forced to transfer it immediately and switch to online business" - Ms. Nhung said.
Similarly, Mr. Nguyen Quang Bang (living on Kim Ma Street, Ba Dinh District) said that on Kim Ma Street alone, a stretch of less than 1 km from the intersection with Nui Truc Street to the intersection with Nguyen Thai Hoc Street, there are currently nearly 20 shops closed, returning premises, and posting signs looking for tenants.
Mr. Nguyen Chi Thanh - Permanent Vice President of the Vietnam Real Estate Brokers Association (Vars) - commented that the rental townhouse segment is under fierce competitive pressure with shopping malls and e-commerce platforms.
Recently, some popular industries such as fashion, accessories... are withdrawing from townhouses. Instead of spending large amounts of money on premises in good locations, many brands and trademarks are tending to move to renting houses in alleys to expand warehouses and do business on online channels.
Ms. Hoang Nguyet Minh - Senior Director, Commercial Leasing Department, Savills Hanoi - mentioned that currently, brands no longer open stores en masse as before but have become more strict when looking for premises.
In particular, long-standing, well-known brands often focus on prime locations, each store has the ability to generate independent profits.
Many real estate experts say that although real estate prices in central districts of Hanoi have increased sharply in recent months, the cash flow from renting houses has remained the same or even decreased slightly. This is the reason why many townhouse owners in Hanoi are forced to consider reducing rental prices, supporting quarterly payments instead of 6-12 months/time, and reducing deposits.
