Add more vacant space
Ho Van Hue Street is one of the top destinations for couples during wedding season.
According to Lao Dong's records in mid-December 2024, although it was the peak wedding season, more than 10 vacant premises appeared along Ho Van Hue Street, less than 1 km away, even though these were prime and bustling premises.
Representatives of some wedding dress shops on this route said that on average, a shop has to bear about 30 million VND/month for rental fees, some places up to 60 million VND/month, not including other expenses.
"Business is still difficult, so many stores cannot find a way to survive and inevitably have to leave, especially small, retail stores.
My shop has been in business for many years. To survive, the shop always launches combos with good prices, renews designs, and especially has many designs that are specially designed to attract customers," said Ms. Quyen - owner of wedding dress shop A.
Mr. Nguyen Van Loc, a resident living near this area, said that the situation of returning premises in the wedding dress street has appeared since the COVID-19 pandemic, at one point up to nearly 20 premises were left vacant.
"Every time someone comes to rent a place for a while, they can't stay and then leave. This happens over and over again, causing the street to no longer be 100% full of wedding dress shops like before, and business is also less bustling," said Mr. Loc.
Expensive rental prices
Real estate experts analyze that it is currently difficult to find tenants for street-front premises because businesses have gradually approached the development of e-commerce.
Many brands no longer open stores as widely as before. Instead, they cut down on spending and tend to look for neighboring districts with lower rents while still basically ensuring the number of customers.
Therefore, the lessor will have to consider and adjust the price according to the mechanism, the price level is more suitable for the tenant groups.
According to Ms. Tran Pham Phuong Quyen - Senior Manager of Retail Leasing Department, Savills HCMC, the current average rental price of premises in central districts is twice or even three times more expensive than in semi-central districts.
“The rental price of downtown space is expected to be stable next year, and the suburbs will face many difficulties because the group of tenants is still concentrated in the essential goods, services and food and beverage industries. Meanwhile, fashion and shopping brands are not confident enough to open points of sale in new residential areas,” said Ms. Quyen.
A report by real estate consulting firm Avison Young Vietnam also shows that in the last quarter, retail supply in Ho Chi Minh City increased to nearly 1.5 million square meters.
Some images recorded at Ho Van Hue street:
