Once sought after for its prime location, many shophouses in Da Nang City are now deserted and abandoned for a long time.
Along Me Linh Street and Trung Lap 17 Street (Da Nang City), a series of shophouses with 3-4 floors high are still vacant and closed. The shophouses with completed furniture, worth nearly ten billion VND, were once the dream of many investors but are now being hung up for rent and advertised.
Not only the shophouse segment, townhouse premises in the central area of Da Nang City such as Tran Phu, Hung Vuong, Nguyen Chi Thanh... also appear everywhere with signs for store rental at expensive prices.
Mr. Nguyen Huu Chau (phone number 090518xxx, character name has been changed) renting a space on Nguyen Chi Thanh street informed that he is renting a 3-storey house with an area of 80m2/storey, the rental price is about 50 million VND/month.
Mr. Chau added that this is only the rent for the premises alone, the unit and enterprise will have to pay the electricity and water service costs themselves every month.
Similarly, Ms. Le Thi Hoa (60 years old, living on Hung Vuong Street, Da Nang) said that although it is a prime street, in recent times, many businesses here have had to return their premises due to the difficult situation.
Ms. Hoa cited that a 2-storey house with an area of 50m2 here is being rented for about 60-70 million VND/month.
The most expensive area is the area around Han Market (Hai Chau Ward), the rental price can be up to 100-180 million VND/month, depending on the area.
A recent report by DKRA Consulting - Vietnam Real Estate Market Development Research and Consulting Unit - analyzed that in the real estate market in Da Nang and surrounding areas, real estate segments continue to be gloomy despite positive signals in the tourism industry.
In the townhouse type, primary supply remains low, new projects are lacking. The supply in the quarter mainly came from old projects that were opened for sale last year, concentrated in the old Da Nang city area. However, no transactions were recorded in the last quarter.
Along with that, the primary selling price level has not fluctuated compared to the same period, the current asking price ranges from 7.1 - 16.3 billion VND/unit. In particular, the secondary market continued to be gloomy, without recording any transactions.
Many real estate experts believe that, besides shophouses, the situation of townhouses with few tenants is the result of many factors, especially in the context of a strong restructuring of the retail market.
In particular, tenants are tending to prioritize choosing modern, efficient spaces, focusing on online business to optimize costs instead of renting townhouses, shophouse premises or traditional retail premises.
