According to Lao Dong reporters, due to high rental costs, many businesses and brands on Chua Boc Street (Dong Da District) are forced to return their stores and rented premises.
Mr. Nguyen Ngoc Tuan (renting a house on Chua Boc street) said that although he has put up a sign for renting a 3-storey space at a price of 30 million VND/month, up to now no one has agreed to rent long-term.
According to Mr. Tuan, the vacant business premises near Tet caused his family to lose a large amount of money. This is not just an isolated case, Mr. Tuan believes that many premises owners on this street are also facing difficulties and deadlocks because they cannot find tenants.
Ms. Trinh Thi Nguyet (59 years old, living on Chua Boc street, Dong Da district) said that although the "for rent" signs have been hung for a long time, many premises on the street are still having difficulty finding tenants.
Since the beginning of 2024, along the nearly 1km long Chua Boc street, there have been dozens of vacant premises with for rent signs. Many brands have even had to lower product prices and quickly sell off their inventory to return their business premises.
Many real estate experts believe that the high price of premises is causing difficulties for businesses and brands with limited capital. Despite being vacant for a long time, many premises on Hanoi streets are having very high rental prices, ranging from 15-80 million VND/month.
The Vietnam Association of Realtors (VARS) recently said that many business premises on Hanoi streets are vacant because business owners cannot afford the costs of renting premises, employee salaries, electricity, water and other expenses.
Recently, businesses that could switch to online operations have quickly returned their premises and withdrawn from central Hanoi streets to save costs.
This has led to a situation where many central streets in Hanoi have a series of vacant premises. The return of business premises on these streets is also quite common.
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 fierce competitive environment.
