The property at 325 Ly Tu Trong, located at the Phu Dong Roundabout in District 1, is not unfamiliar to Saigon residents and frequent travelers in the area. In the past, many F&B brands such as Phuc Long, Soya Garden, and PhinDeli have rented this property. However, these brands all left when the rent prices increased.
The Phu Dong Roundabout is one of the hottest properties in District 1, Ho Chi Minh City, but it has changed tenants continuously over the years.
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Phuc Long used to rent this property for $14,000 per month (around 350 million VND), but had to leave when the rent increased to $25,000 per month (over 600 million VND).
Soya Garden and PhinDeli took over after Phuc Long, renting at a similar price of over 600 million VND per month, but they also didn’t stay for long. The latest tenant, MIA, paid around 700 million VND per month, but also left not long after the end of the Lunar New Year in 2024.
Interestingly, after MIA left, the rent for this property decreased to 600 million VND per month, according to real estate agents.
 All of MIA’s products were moved out. Currently, this expensive property is displaying the real estate agent’s phone number and a notice of MIA’s relocation – Photo: Thuong Ngoc
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Whether the price reduction will help find a new tenant for this expensive property remains to be seen, but according to some research units, the rental real estate market in Ho Chi Minh City is still stable in the early months of 2024.
According to CBRE, the retail real estate market continues to operate stably despite a decrease in consumer confidence. The asking rent price in the city center in 2023 increased by 6% compared to the previous year, due to the entrance of luxury brands. Meanwhile, the rent price in non-central areas increased by up to 28% due to limited supply.
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Asking rent price in the city center of Hanoi and Ho Chi Minh City in recent years
Source: CBRE
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Asking rent price in non-central areas of Hanoi and Ho Chi Minh City in recent years
Source: CBRE
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In the near future, CBRE forecasts that there will be no additional retail rental space in the city center of Ho Chi Minh City until the end of 2024. Instead, non-central areas will have an additional supply of 76,000 square meters from 2 commercial centers, Vincom Mega Mall in Vinhomes Grand Park (Thu Duc District) and Parc Mall in District 8. In 2025, the new city center will have additional rental supply from the Sun Tower project (District 1).
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CBRE’s forecast for the retail market in Ho Chi Minh City
Source: CBRE
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