According to Lao Dong reporters on January 6-7, many business premises on Kim Ma Street (Ba Dinh District) were continuously closed and had signs for rent posted.
Mr. Nguyen Ngoc Vu (living on Kim Ma street) said that in the past six months, many shops on the street were only rented for a short time and then quickly withdrew because they could not bear the cost of renting the premises.
According to Mr. Vu’s observation, although the street is only nearly 3km long, there are dozens of vacant premises. In fact, many stores here have only been open for 1-3 months and have had to put up transfer signs because their revenue cannot cover the expensive rental costs.
"Business is increasingly competitive, the rental price here is fluctuating around 15-60 million VND/month, so many brands are forced to choose to close down and move to other places to do business," said Mr. Vu.
Similarly, Ms. Nguyen Kim Dung (doing business on Kim Ma street, Hanoi) informed that although it is difficult to find customers, the rental price here is still very high, averaging from 20-40 million VND/month, even some houses are being rented at expensive prices of 50-80 million VND/month.
Many local residents said that after many years of construction, the Nhon - Hanoi Railway Station Metro project (section through Kim Ma street) is still unfinished, surrounded by corrugated iron, directly affecting the business of brands and trademarks.
Referring to this issue, many real estate experts commented that from the beginning of 2024 until now, landlords have had to start adjusting prices according to the mechanism, prices are more suitable for groups of tenants.
To make the situation of renting townhouses less gloomy, landlords and business tenants should proactively come up with response plans, negotiate, and have measures to adapt to the new situation.
There are many tenants who, despite their needs, are still waiting to get cheaper premises. According to the general trend, the retail space market in Hanoi is gradually improving, but it is forecasted to only reach about 80% compared to the period before 2019.
Under current pressure, Ms. Hoang Nguyet Minh - Senior Expert of Savills Hanoi - said that real estate owners, especially townhouse owners, need to change to adapt.
First of all, according to Ms. Minh, landlords 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, it is necessary to bring the rental price back to its true value, instead of competing to increase it, causing difficulties for businesses renting.
