On Ton Duc Thang Street (Hanoi), a once bustling commercial street, now every 100-200 meters there is a house with a sign for rent. Many other neighborhoods such as Bach Mai, Kim Ma, Nguyen Luong Bang... are in a similar situation.
On Ton Duc Thang Street (Hanoi), a once bustling commercial street, now every 100-200 meters there is a house with a sign for rent. Many other neighborhoods such as Bach Mai, Kim Ma, Nguyen Luong Bang... are in a similar situation.
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| Many street-front shops in Hanoi have hung up signs for rent for months but have yet to find any customers (Photo: Duc Thanh) |
Deserted streets near Tet
Without the colorful decorations to welcome the Lunar New Year, many shops in the “golden” neighborhoods are in a state of “closed doors and locked doors”. On Tay Son, Ton Duc Thang, Nguyen Luong Bang streets (Dong Da district), it is not difficult to see houses with signs for rent.
Similarly, famous streets in Hai Ba Trung district such as Hue and Bach Mai also recorded many businesses returning their premises. On Kim Ma and Nguyen Thai Hoc streets (Ba Dinh district), the situation is not much better, as many houses quietly closed their shutters and posted notices looking for tenants.
Sharing with Dau Tu Newspaper reporter, Ms. Tuyet Lan, a resident of Bach Mai Street, said that many street-front houses are having reduced rental prices. At the beginning of 2024, a 20 m2 space recorded a rental price of about 16 million VND/month, but now, after a long time of not finding customers, the landlord has lowered the price to 12 million VND/month.
Most townhouses in the central area do not have parking spaces, and their frontage and area are relatively narrow. These limitations will reduce the shopping experience of customers.
Some landlords still keep the rent the same, so tenants have to move to other places to save money because of business difficulties. On Ton Duc Thang Street (Dong Da District), a shoe store closed because it could no longer pay the rent of about 10 million VND/month for a space of less than 20 square meters.
“Usually, the contract has a clause to increase/decrease the rent by around 10% per year. The landlord has not increased the rent for the past 2 years, but the tenants cannot hold out because the cost of the premises has taken up more than half of the revenue,” said a resident of the neighborhood.
With the boom of e-commerce, some small stores are also changing their business strategies. Ms. Ngoc Yen, an office worker, said that she and her friends pooled capital to open a clothing store in an alley on Bui Xuong Trach Street (Thanh Xuan District).
“Because the house is located in an alley, the rent is quite cheap, just over 7 million VND/month. The savings from the rent will be used to run ads and hire KOLs to review products on social networks,” said Ms. Yen.
"Taste" in choosing business premises
Mr. Le Anh Thai, Deputy Director of Ngoc Nguyen Land Company, a unit specializing in leasing business premises in Hanoi, said that once famous areas such as Hue Street, Bach Mai (Hai Ba Trung District), Ton Duc Thang, Nguyen Luong Bang, Tay Son (Dong Da District), are gradually declining in both attraction and rental prices.
“The reason partly comes from the fact that these streets have limitations when stopping and parking cars, small sidewalks, frequent traffic jams, making it difficult to shop at the store. Besides, although the commercial value has decreased, the value of the premises here is high when compared to neighboring streets, which have better infrastructure and recognition,” Mr. Le Anh Thai shared the reason why many businesses “flee” from major streets.
In addition, after Covid-19, the financial health of many businesses has not yet fully recovered. To save costs, many units look for premises in alleys or switch to doing business on e-commerce platforms. When the situation stabilizes, businesses can continue to look for beautiful premises to enhance brand recognition.
“However, streets such as Xa Dan, Thai Ha (Dong Da district), Nguyen Van Loc (Ha Dong district), Trung Hoa (Cau Giay district), Le Duc Tho (Nam Tu Liem district)... are still being rented and interested by many big brands. In addition, neighborhoods near Hoan Kiem Lake such as Hai Ba Trung, Ly Thuong Kiet, Tran Hung Dao, Quang Trung streets and the Old Quarter (Hoan Kiem district) are also being sought after by many big businesses,” Mr. Thai informed.
According to Mr. Thai, premises in a beautiful location not only bring good business efficiency, but also demonstrate the influence and value of the brand. This is the reason why many large enterprises in the fields of F&B (food and beverage services), fashion, gold, silver, precious stones, technology equipment, etc. do not hesitate to spend hundreds of millions of VND per month on the most prime business premises in Hanoi, despite the fact that the rental price here is constantly increasing.
Mr. Nguyen Chi Thanh, Permanent Vice President of the Vietnam Association of Realtors (VARS), said that the townhouse rental segment is facing great competitive pressure from shopping malls and e-commerce platforms.
Notably, some fashion and accessory brands are no longer interested in renting townhouses. Instead, they have switched to renting houses in alleys to expand their warehouses and focus on marketing on online channels.
The VARS expert also pointed out the disadvantages of most townhouses in the central area such as no parking space, relatively narrow frontage and area. These limitations will reduce the shopping experience of customers.
According to Ms. Hoang Nguyet Minh, Senior Director of Savills Hanoi, instead of defaulting to a central location, businesses are having to consider more factors before paying rent. Accordingly, factors such as parking areas for shippers and customers, fire prevention standards, rush hour traffic conditions, etc. are given priority.
Source: https://baodautu.vn/batdongsan/mat-bang-nha-pho-ha-noi-e-khach-thue-d241419.html
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