According to Lao Dong reporter on October 9, due to the high cost of renting premises in recent months, many businesses and brands on central streets of Hanoi such as Cau Giay, Thanh Xuan, Dong Da, Hoan Kiem... have been forced to return their stores and premises.
Mr. Nguyen Van Hung (59 years old, living on Nguyen Thi Dinh street, Cau Giay district) shared that although the "for rent" signs have been hung for a long time, many prime locations on Nguyen Thi Dinh street are still vacant, making it difficult to find long-term tenants.
"Although they have put up signs for rent, many shops on the street are still having trouble finding tenants, leaving their premises vacant is a waste. Some landlords even have to post information on social networks to invite tenants, willing to reduce prices for the first month," said Mr. Hung.
Similarly, Ms. Trinh Thi Huong (renting premises on Kim Ma Street, Hanoi) shared that many rental premises on the street have been vacant since the beginning of 2024 until now because businesses and brands cannot balance costs.
According to Ms. Huong, most of these vacant premises used to be the business premises of big brands in the fashion, food, convenience stores, cosmetics, etc. Due to not being able to bear the costs, consumer habits changed after the COVID-19 pandemic, although some brands came to ask to rent premises, they could only rent for 1-3 months and then quietly closed and withdrew.
Speaking with Lao Dong, 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 their premises and flee from major streets in Hanoi due to high rents and financial exhaustion.
According to Mr. Nguyen The Diep, 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.
To overcome the above situation, 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, business premises owners 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. From there, they can set the rental price at its true value, instead of competing to raise the price, causing difficulties for tenants.
