According to Lao Dong reporter on December 31, 2024, many business premises on streets in Hai Ba Trung district such as Bach Mai, Ta Quang Buu, Tran Khat Chan, Minh Khai... have been continuously vacant recently. Although the landlords here have continuously increased incentives and rented out individual floors, it is still difficult to find tenants.
Continuously witnessing the departure of many brands and trademarks, Mr. Nguyen Huu Tho (living on Bach Mai Street, Hai Ba Trung District) said that recently, many wholesale and business premises on the street had to close or transfer due to the gloomy business situation, while the rental cost was too high.
"The rental price of business premises on Bach Mai Street is currently fluctuating around 15-80 million VND/m2. With the expensive rental price, many brands and stores here have had to continuously return their premises, switch to online business or move into alleys," said Mr. Tho.
According to many residents of Hai Ba Trung district, the number of vacant spaces on these streets is increasing over time, even though this is a prime location district, close to hospitals, schools, offices...
Even because they cannot afford the cost of renting premises, importing goods, and hiring employees, many stores here are forced to continuously hang up transfer signs and return their business premises.
The Vietnam Association of Realtors (VARS) recently said that many business premises on Hanoi streets are vacant because business owners cannot afford the costs of renting premises, employee salaries, electricity, water and other expenses.
Recently, businesses that can switch to online form have quickly returned their premises and withdrawn from the central streets of Hanoi to save costs. This has led to a situation where many central streets of Hanoi have a series of vacant premises, and the return of business premises on existing streets is also quite common.
Ms. Hoang Nguyet Minh - Senior expert of Savills Hanoi - said that real estate rental units, especially those leasing townhouses, need to change to adapt.
According to Ms. Minh, landlords at this time need to complete the infrastructure, ensure that the premises meet the conditions for granting a rental license in terms of functionality, and ensure fire prevention and fighting regulations. Then, they need to bring the rental price back to its true value, instead of competing to increase it, causing difficulties for businesses renting in the last month of 2024.
