Business premises for rent are sluggish.
Dan Tri reporters' records show that on the old streets and the center of Hanoi, including busy business streets, a series of business premises are being posted with signs for rent.
Many business premises have been posted for rent for a long time but still cannot find tenants (Illustration: Ha Phong).
Assessing this situation, Mr. Nguyen Anh Quang - a real estate brokerage owner in Hanoi - said that among the issues affecting the rental market of townhouses is the purchasing power of consumers. This leads to changes in the production and business models of many large stores.
According to Mr. Quang, in the past, business owners often focused on main roads to trade, advertise and accept losses, but now businesses tend to retreat to suburban areas or alleys to save costs.
However, the current rental price is still much lower than at the end of 2019 - before the Covid-19 pandemic. Therefore, many landlords are still expecting and wanting to increase the rental price, leading to a mismatch between landlord expectations and tenants' business plans.
Townhouse prices remain high
Although the rental business is sluggish, the selling price of business premises has not decreased but even increased. Many townhouses in Hanoi have sky-high prices of up to billions of VND/m2.
A survey of some real estate trading sites shows that the prices of houses on streets such as Hang Bac, Hang Bong, Dinh Liet, Ta Hien, Luong Ngoc Quyen, etc. in the Old Quarter are being advertised for sale at 700-900 million VND/m2. In particular, on some streets such as Ly Thai To, Cau Go, Dinh Tien Hoang, there are townhouses being advertised for sale at 2-2.5 billion VND/m2.
Further from the city center, the price of houses on Thai Ha, Hoang Cau, Xa Dan, Pham Ngoc Thach streets..., are being advertised for sale at 430-825 million VND/m2. A 40m2 house on Thai Ha street is being sold for 33 billion VND, equivalent to 825 million VND/m2.
Street-front house prices are still climbing despite sluggish rental space and low market liquidity (Illustration: Ha Phong).
Mr. Tran The Nam - a real estate broker in Hanoi - said that townhouses are always at a high price. Although the market is sluggish, some homeowners continue to increase the selling price. In particular, some premises are paid by tenants, and homeowners take advantage of this opportunity to both sell and rent.
"In addition to the advantage of business frontage, the price of a townhouse also includes the cost of building the house. Many homeowners "price" it too high, even though they have been selling it for a year, they still haven't found a new owner," said Mr. Nam.
The director of a real estate transaction office in Hanoi admitted that the liquidity of the townhouse segment in Hanoi is currently very low. The selling price has increased recently due to the high expectations of homeowners.
"Currently, some homeowners have high expectations, so they have to pay a high price to agree to sell. But in reality, the market is no longer active, so homeowners who really need to sell have the best price for buyers and much lower than the advertised price," the transaction office director shared.
According to a recent survey of low-rise real estate brokers by Batdongsan.com.vn, more than half of the participants said that transactions had decreased by more than 50%, consecutively in the first 3 quarters of the year. The level of interest in low-rise real estate has plummeted since October 2022, such as villas down 48%, townhouses down 54%. The reason buyers are concerned about transactions is that the prices are too high, making it difficult to borrow money to buy.
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