According to Lao Dong reporters, many business premises in Hanoi's Old Quarters such as Hang Bong, Hang Luoc, Trang Thi, etc. have remained closed for months. Although landlords have continuously hung up signs and offered deep discounts, they are still finding it difficult to attract tenants.
Having posted an ad for a 50m2 space for rent on Hang Luoc Street, for more than two months now, Ms. Nguyen Ngoc Van (living in Hoan Kiem District, Hanoi) has been frustrated because she has only had people come to ask for information but has not yet found a tenant.
Ms. Ngoc Van added that she asked many people to post the ad, but the rental price of the premises in the old quarter is high and the tenants are picky, causing her family to lose more than 90 million VND per month compared to before.
“In the past, it was very difficult to find vacant premises on Hanoi’s Old Quarter, but recently, many premises here have been continuously closed and show no signs of stopping. The premises my family rents out only have customers calling to ask for information, no one has closed the lease yet,” said Ms. Van.
Similarly, Mr. Le Minh Thong (a real estate broker in Hanoi) shared that the wave of vacant premises in Hanoi's Old Quarter has not stopped despite signs of improvement. To save costs, many tenants are tending to move to other districts, where the rental price is lower but still ensures stable revenue.
According to Mr. Thong, to attract tenants, many landlords have proactively reduced prices by 10-15% per month along with many preferential conditions.
According to recent data analysis by CBRE Vietnam, in the next 3 years, retail rental prices in central areas of Hanoi and Ho Chi Minh City are expected to increase by 7-10% and in non-central areas by 2-3%. Currently, rental prices in central areas have reached nearly 280 USD/m2/month, an increase of 18.5% compared to last year.
Many real estate experts analyze that from the beginning of 2024 until now, many townhouses are still having difficulty finding tenants. To overcome this situation, landlords will have to adjust prices according to the mechanism, prices more suitable for groups of tenants.
Notably, the sluggish situation of premises on many central streets of the capital will be difficult to reduce when rental prices remain high and there is fierce competition from e-commerce and online sales channels.
Ms. Hoang Nguyet Minh - senior expert of Savills Hanoi - commented that currently, brands no longer open stores en masse as before but have become more strict when looking for premises.
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.
