According to Lao Dong reporters, the rental price of street-front houses in Hanoi has been continuously increasing recently, causing many businesses to face difficulties, forcing them to consider closing down, returning the premises and moving elsewhere.
Accordingly, many street-front houses on some major streets in Hanoi are having quite high rental prices. For example, on Hang Bong Street (Hoan Kiem District), a street-front house is only over 3 square meters wide but is being rented for 60 million VND/month.
The rental price of a 40m2 townhouse on Truong Chinh Street (Thanh Xuan District) is 35 million VND/month, and the rental price of a townhouse on Xuan Thuy Street (Cau Giay District) is currently ranging from 30 - 50 million VND/month depending on the area.
Mr. Nguyen Huu Manh (34 years old, living in Cau Giay district, Hanoi) said that although many townhouses are vacant, almost all landlords do not reduce the rent.
Notably, according to Mr. Manh, in addition to high rents, many landlords often require tenants to sign long-term contracts. This is a rather strict requirement that makes tenants hesitate because of limited financial resources.
"The high price of premises has caused many difficulties for new businesses with limited capital like me. I have asked for rental prices on many streets but have not found a satisfactory premises because the rental prices are too high, commonly ranging from 15-60 million VND/m2" - Mr. Manh said.
A recent report by CBRE Vietnam shows that retail space rental prices in the central area of Hanoi in the third quarter of 2024 reached 172.7 USD/m2/month, an increase of 16.2% over the same period last year.
Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn - commented that one of the issues affecting the market for renting townhouses is the purchasing power of consumers. This leads to flexible changes in the production and business models of many large stores.
Mr. Tuan said that in the past, they often focused on main roads to both trade and advertise their products, but now businesses tend to retreat to suburban areas or alleys to save costs.
Ms. Hoang Nguyet Minh - Senior Expert of Savills Hanoi - recommends that, in the face of the current situation of many vacant townhouses, owners need to adjust rental prices to better match their real value. The increase in townhouse rental prices and premises is causing difficulties for small businesses and business households.
According to experts, the trend of online business, along with economic fluctuations, will continue to shape the retail space market in the coming time. Ms. Hoang Nguyet Minh emphasized that timely adaptation moves will determine the success or failure of business areas in an increasingly competitive environment.
