Transferring business premises, renting shops, renting houses,… are signs that anyone can easily come across on most of the streets that are considered prime and bustling in Hanoi after Tet.
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Video: Crowded signs for house rental and leasing in Hanoi |
Actual observations on major streets such as Hang Bong, Truong Chinh, Giai Phong, Nguyen Trai… show that there are rental and shop transfer signs every few dozen meters.
Most of the premises that previously had transfer signs were fashion stores, cosmetic stores, beverage stores, etc.
Sharing with Tien Phong, Ms. Vu Thanh Phuong (32 years old, Trieu Khuc, Thanh Xuan) said that after the COVID-19 pandemic, people’s shopping habits have changed, they have switched from offline to online. At the same time, the rise and demand of e-commerce platforms have caused the retail market to lose its position, with the fashion and cosmetics segments being the most affected.
“I used to have a fashion business, but the monthly rent and staff cost me more than 30 million VND, not to mention other expenses. Every time I open my eyes, I lose money, and the number of customers coming to buy is dwindling. Meanwhile, online fashion stores don’t have to pay rent, don’t have to set up a space, so their prices are much lower, so naturally customers will choose to buy online. Therefore, I decided to transfer the store, switch to online business to relieve pressure,” said Ms. Thanh Phuong.
Not only business premises, but the number of signs and information about selling and leasing houses and mini apartments after Tet has also increased sharply.
Surveying on real estate platforms and observing the reality, there are hundreds of listings for sale and lease every day. In Thanh Xuan district, especially in areas with many mini apartments such as Khuong Ha, Khuong Dinh, Vu Tong Phan, many brokers jokingly say “one square meter has dozens of rental or sale signs for mini apartments”.
Despite the tough situation, many landlords or investors with multiple premises are still unwilling to reduce rental prices, even shouting “sky-high” prices. For example, a section of premises on Cau Go street (Hang Bac ward, Hoan Kiem district) with an area of 30m2 is advertising for transfer at a price of 150 million VND/month, which many people say is a high price compared to the surrounding houses.
Chairman of the Vietnam Real Estate Brokers Association (VARS) – Nguyen Van Dinh said that the situation of deserted business premises has a heavy impact on the real estate market, especially the commercial real estate segment. It reduces investors’ trust.
According to the Chairman of VARS, to overcome the aforementioned situation, businesses and store owners need to research and adapt to the current market by applying technology in sales, along with other market fluctuations and balancing product prices to attract customers back.
From a customer perspective, Ms. Thanh Phuong and many others expressed that if the premises owners do not reduce rental prices or increase the time to pay rent, there will be more premises left unoccupied in the future…
