According to Lao Dong reporters, although located on the central street of Ba Dinh district (Hanoi), recently, many business premises on Kim Ma street have been vacant.
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 (Hanoi) currently has nearly 20 closed stores, returned premises, and hung up signs looking for tenants.
Ms. Nguyen Thi Ngoc (36 years old, doing business on Kim Ma street) said that since the beginning of 2024, many brands and stores on the street have continuously left and closed. Many landlords have put up signs for rent in series.
"Once the busiest commercial street, for the whole year, the row of shops here has been hanging signs for transferring and renting premises in series. Even though many landlords have continuously posted notices for renting premises at preferential prices, the situation is still not very optimistic," said Ms. Ngoc.
After the tenant returned the premises at the end of March 2024, Mr. Le Van Thang (homeowner on Kim Ma Street, Ba Dinh District) is also hanging a sign for rent on a 4-storey premises, area 80m2/floor with a price of 50 million VND/month.
According to Mr. Thang, tenants only need to pay rent and deposit for the first month instead of paying 3 months rent and deposit as before to reduce pressure and cost burden. However, despite offering the above incentives, the family's business premises have not yet found tenants.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - commented that although consumer demand has gradually recovered, in recent months, many businesses, brands and labels still have to return premises on major streets in Hanoi due to expensive rents and insufficient financial resources for long-term leases.
Experts believe that lowering rental prices for business premises, running shopping programs, and stimulating consumption are great motivations for businesses and brands to quickly recover, return to the market, and revive purchasing power.
According to Ms. Hoang Nguyet Minh - senior expert of Savills Hanoi, currently, brands no longer open stores en masse as before but have become more strict when looking for premises.
Many real estate experts analyze that the development of e-commerce is making shopping activities more diverse and flexible. Renting townhouses in Hanoi for business and product display is gradually becoming unnecessary, making leasing more difficult.
