Houses for rent worth hundreds of millions of VND/month in Ho Chi Minh City are still unsold

Surveys show that street-front houses on central streets of District 1, Ho Chi Minh City such as Ly Tu Trong, Mac Dinh Chi, Dong Khoi, Le Loi, Hai Ba Trung, Nguyen Hue... are still vacant. Monthly rental prices range from several tens of millions of VND to several hundreds of millions of VND, depending on the area and usage area.

On Dong Khoi Street, the rental price is mostly over 100 million VND/m2 depending on the area, and the landlord only leases for 1 year. This street has the 13th most expensive rental price in the world, according to a survey by Cushman & Wakefield at the end of 2023. The rental price here also increased by 17% compared to the same period last year.

On Le Loi Street, about a dozen premises are waiting for tenants, many of which have been vacant for months. The rental price is also over 100 million VND/month, even 2-3 times higher, depending on the location.

A vacant house for rent on Nguyen Dinh Chieu Street, District 1 (Photo: Nam Anh).

Mr. Vo Hong Thang - Director of Consulting Services and Project Development, DKRA Group - said that about 3 months ago, this unit surveyed and found that the rental price of premises on major roads in Ho Chi Minh City decreased by 10-15% but the occupancy rate also decreased by 20-25%. However, the rental price of premises inside alleys had a lower decrease and the occupancy rate increased.

Instead of spending a lot of money to rent a prime location, they have changed and looked for moderate locations with reasonable costs. Therefore, in the short term, the representative of DKRA Group said that the rental space on the streets will be very difficult to fill and will be picky about tenants.

Ms. Mai Vo - Deputy Director, Head of National Retail Services, CBRE Vietnam - noted that many core retail premises in townhouses along Dong Khoi, Le Loi, Nguyen Hue are vacant. The reason is the impact on demand after Covid, some premises are not yet clear on legal issues, so tenants are hesitant.

In addition, tenants in central areas are mostly new, luxury brands that want to increase their presence and want to lease for 3-5 years, but some premises are only leased for 1 year. That is too risky and brands also refuse to rent.

According to Ms. Mai, premises with prime locations and central locations are also of high value. Landlords understand this well, so they would rather leave them empty than reduce the price and rent them out without getting the expected results. CBRE Vietnam representatives expect the retail market to be more vibrant in 2025, when many new brands appear in Vietnam and open new stores.

Economic difficulties and landlords demanding very high prices are also the opinions of Ms. Trang Bui - General Director of Cushman & Wakefield when talking about the many vacant premises in Ho Chi Minh City recently.

In addition, Ms. Trang also pointed out that on main streets such as Ly Tu Trong and Mac Thi Buoi, the premises are only 4m wide. The brands that rent can only do business on the ground floor, the upper floor is used as a warehouse. Therefore, the cost of premises requires the tenant to have stable financial resources and business.

With the current economic situation, financial resources for brands are not difficult to find, but stable business is more difficult. "They have to consider that problem, weigh the cost - profit rather than promoting the brand from the premises," Ms. Trang said.

According to this person, normally, the current premises are 4m wide, 20m deep, with a staircase in the middle, with a usable area of ​​about 60m2, many brands find it no longer suitable... They want a larger area, a better experience space. Thus, the premises need to be restructured, renovated into large spaces and developed into high floors.

Source: https://dantri.com.vn/bat-dong-san/nha-cho-thue-tram-trieu-dongthang-o-tphcm-e-van-e-20240713073252037.htm