According to Lao Dong reporters in late December 2024, due to high rental costs, many businesses and brands on central streets of Hanoi such as Cau Giay, Thanh Xuan, Dong Da, Hoan Kiem, have recently been forced to return their stores and rented premises.
Mr. Nguyen Van Bien (renting a space on Nguyen Trai Street, Thanh Xuan District) said that although he has been hanging a sign for renting a 4-storey space for 45 million VND/month for half a year, up to now he has only seen people come to ask about the price, no one has decided to rent the space long-term.
Mr. Bien calculated that the vacant business premises for more than half a year has caused his family to lose a large amount of money, up to nearly 300 million VND. This is not just an isolated case, Mr. Bien believes that many premises owners on this street are also facing difficulties and deadlocks because they cannot find tenants.
In fact, not only in Thanh Xuan district, many shops in Hoan Kiem district are also hanging up for rent signs day and night.
Ms. Trinh Thi Lan (45 years old, living on Hang Dao Street, Hoan Kiem District) said that despite hanging signs and drastically reducing rental prices, many shops in the Old Quarter still have difficulty finding tenants, leaving many premises vacant.
Ms. Lan regrets that most of these vacant premises used to be the business premises of big brands in the fashion, food, convenience stores, cosmetics, etc. industries. From the beginning of 2024 until now, some brands have come to ask to rent premises but they could only rent for 1-3 months and then quickly withdrew.
Referring to this content, Mr. Nguyen Chi Thanh - Permanent Vice President of Vietnam Real Estate Brokers Association (Vars) - commented that the rental townhouse segment is under fierce competitive pressure with shopping malls and e-commerce platforms.
In particular, some popular industries such as fashion and accessories are witnessing a "flight" from townhouses. Instead of spending large amounts of money on premises in good locations, they often tend to switch to renting houses in alleys to expand warehouses and focus on advertising on online sales channels.
Ms. Hoang Nguyet Minh - Senior Director, Commercial Leasing Department, Savills Hanoi - emphasized that currently, brands no longer open stores en masse as before but have become more strict when looking for premises.
In particular, premises in densely populated areas, with many access routes, convenient parking, open sidewalks, not restricted by infrastructure projects under construction or road closures during rush hour, and with suitable rental prices are being prioritized.
