Nguyen Trai Street (District 5) connects from the intersection of Hong Bang and Nguyen Thi Nho (bordering District 5 and District 11) to Phu Dong intersection (District 1). This street is known as the "fashion street" of Ho Chi Minh City, with hundreds of shops that have been selling all kinds of products for many years, from shoes, clothes, handbags, hats, glasses...
However, in recent months, business has been sluggish and premises have been returned continuously. On November 5, although it was the weekend, observations by reporters from the Nguoi Lao Dong Newspaper showed that business activities on this route were quite gloomy.
Every 100 to 200 meters, you will see premises covered with for-lease signs, and there are even stores that opened not long ago but had to "run away" due to poor sales. It is estimated that there are about 30 to 40 vacant premises on this route.
Talking to some landlords and brokers renting premises on this route, the current rental price here fluctuates between 45 million and 80 million VND/month.
The fashion store on Nguyen Trai Street had to close down and put up a transfer sign after operating for a short time.
Mr. Hoang, the owner of a shop on this street, said he is looking to transfer the shop with a rental price of 42 million VND/month. The shop has an area of 80 square meters (4m wide x 20m long) including 1 ground floor and 1 mezzanine, with a lease contract of at least 2 years and a deposit of 3 months.
A nearby site is also covered with rental signs.
Talking to Mr. Nhat Hao, a broker of a 52.5m2 house (3.5m wide, 15m long) on this street, we were quoted a rental price of 45 million VND/month, signing a lease contract from 3 to 5 years, deposit 3 months. However, the price and rental conditions can be negotiated but not much.
"The inside is empty, the tenant can decorate and equip the necessary items. If the tenant agrees to rent, I will try to ask the landlord to waive the time to set up the shop," said this broker.
The other facade on Nguyen Trai street has not had any tenants for many months.
According to another broker named Tam, this space is currently rented for 90 million VND/month. Area 80m2 (4m wide, 20m long) 1 ground floor, 2 upper floors.
"If the customer is willing and comes to see the house, the price can be negotiated with the landlord, but not much because at the end of the year, many people are asking to rent. The lease must be at least 3 years, deposit at least 3 months, the tenant is responsible for the time to install furniture in the shop" - the broker noted.
A long-standing fashion store still has no customers, the staff just sit and read newspapers to relieve boredom.
Uncle Tam, 60 years old, a security guard at a fashion store, said that many stores here are quite sluggish, "people pay a lot of rent."
According to Uncle Tam, the rent here is too high, there are no tenants but few landlords are willing to reduce the price. For example, a nearby shophouse is rented for 55 million VND/month but the landlord still insists on 65 million VND/month, determined not to reduce the price.
"Before the pandemic, there were a lot of customers coming and going, I worked without stopping. Now, I sit from morning to night to welcome less than 10 customers. People buy everything online. Many people living nearby have no jobs, so they have also paid their rent and returned to their hometowns" - Uncle Tam shared.
Many other fashion stores are in the same situation, with almost no customers.
Ms. Huong, the owner of a coffee shop on this street, also said that business in this area has been very slow recently. Before, her shop sold drinks to more than 300 customers a day, mainly employees of surrounding shops. Now, it sells to less than 100 customers because many shops have returned their premises and employees have quit.
"You shouldn't rent a space at this time. If you want to do business, you should leave it for next year. The rental price here is still quite high because the owner knows that many people need to rent at the end of the year, so he doesn't reduce it. If last year, this street was crowded with people shopping, and trucks carrying clothes for stores were parked all over the street, now it's deserted. People are also buying things online," she said.
Time-based business stores are running shocking promotions, some places have discounts up to 70%
Not only on Nguyen Trai street, a series of previously bustling commercial frontages such as 3/2 street (District 11), Hai Ba Trung street, Cach Mang Thang 8 street (District 3),... are also in a sluggish situation, with many premises returned and no new tenants.
Deserted scene on the busiest fashion street in Ho Chi Minh City on November 5.
Source: https://nld.com.vn/kinh-te/pho-thoi-trang-sam-uat-nhat-tp-hcm-vang-tanh-chi-chit-cac-bang-cho-thue-mat-bang-20231105144801981.htm
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