What are the rental prices for commercial space in "Shark's Mouth"?

(Dan Tri Newspaper) - Rental space in the "Shark's Jaw" building is among the most expensive in Hanoi, costing several billion VND per year.

The Hanoi People's Committee recently approved a proposal to demolish the "Shark's Jaw" building and is considering a plan to redesign and renovate the Dong Kinh - Nghia Thuc Square area in Hoan Kiem district.

After demolishing the "Shark's Jaw" building, the city will study the construction of approximately three underground levels and propose specific functions for each level. These include the planned allocation of cultural and commercial spaces in level 1, and parking areas in levels 2 and 3.

According to a survey by Dan Tri newspaper reporters, the six-story "Shark's Jaw" building is currently being leased to various brands for business purposes. With its prime location overlooking Dong Kinh Nghia Thuc Square and adjacent to Hoan Kiem Lake, the rental prices for commercial space in the "Shark's Jaw" building are among the most expensive in the capital.

Over 10 years ago, the first floor of this building was leased to two major fashion brands for approximately 210 million VND per month for an area of ​​100 square meters. This means these fashion brands paid around 2.5 billion VND in rent annually.

In August 2023, a 75m2 apartment on the first floor of the "Shark's Jaw" building was advertised for rent on a real estate website at a price of 230 million VND per month, equivalent to over 3 million VND per square meter per month. This means the tenant would have to pay approximately 2.8 billion VND per year.

The "Shark's Jaw" building boasts a prime location in the capital, hence its sky-high rental prices (Illustrative image: Giang Phong).

Currently, all commercial spaces in this building are occupied. In fact, due to its prime location, the rental prices for commercial spaces in the "Shark's Jaw" building are always high and increase over time. In addition, the prices of food and drinks sold in this building are also higher than the average, yet they still attract both domestic and international customers.

However, in reality, the rental prices at the "Shark's Jaw" building are not the most expensive in the capital. According to data from a market research company, Trang Tien Street (Hoan Kiem District, Hanoi) ranks 18th (17th in 2023) in the list of 51 streets with the highest retail rental prices in the Asia-Pacific region worldwide .

Trang Tien Street has rental prices starting from 300 USD/m2/month, equivalent to 7.65 million VND/m2/month, a 50% increase compared to pre-pandemic levels and unchanged compared to the same period last year. Rental prices on this street are significantly higher than many famous streets in Guangzhou, Chengdu, Chongqing (China), Bangkok (Thailand), or Kuala Lumpur (Malaysia)...

Furthermore, in Vietnam, Dong Khoi Street (Ho Chi Minh City) is considered to have the most expensive rental prices. Specifically, retail space rental prices on Dong Khoi Street reach 330 USD/m2/month, equivalent to nearly 8.3 million VND/m2/month.

Ms. Trang Bui, General Director of Cushman & Wakefield, said that retail brands, from luxury to mass-market, are increasing investment in physical stores in strategic locations to showcase products and attract consumer attention.

According to Mr. Tuan Anh, director of a real estate brokerage company in Hanoi, the rent for space in this building is calculated in USD. Therefore, in addition to price increases over time, there will also be price increases due to the exchange rate difference between the Vietnamese Dong and the USD.

"Currently, many rental properties in Hanoi are experiencing a general price increase of around 5-10% per year. For example, in the first year, a tenant pays 200 million VND per month, and in the second year, the rent increases by 10%, equivalent to 220 million VND per month," he said.

Source: https://dantri.com.vn/bat-dong-san/gia-thue-mat-bang-o-ham-ca-map-the-nao-20250309121750726.htm