Kim Ma is a well-known fashion hub in Ba Dinh district, but lately, many stores have closed down. Landlords have been desperately advertising vacant properties, but some have remained unoccupied for months due to a lack of tenants.
Numerous empty rental properties can be found on the central streets of Hanoi.
Ms. My Dung, the owner of a house on Kim Ma street, shared that her family has been trying to rent out their property for 150 million VND per month for the past three months without success.
Previously, Dung rented out the 100-square-meter space to a fashion designer. However, the tenant decided to downsize and focus on online sales, leading to the vacancy.
This trend of business closures and landlords struggling to find new tenants is prevalent on central streets like Kim Ma, Pho Hue, and Giang Vo. It is also happening in the bustling ancient streets of Hoan Kiem district.
Prime retail spaces, with monthly rents ranging from tens of millions to hundreds of millions of VND, now lie vacant, awaiting new tenants.
The wave of property returns in Hanoi began in the second half of 2020 after the first COVID-19 outbreak, causing a localized drop in rental prices. Central properties became sought-after again by businesses in mid-2022. However, the rental market’s revival was short-lived as the trend of vacating street-front properties resurfaced.
In a report on the economic situation for the first half of 2024, Mr. Nguyen Duc Tam, Director of the National Economic Affairs Department (Ministry of Planning and Investment), acknowledged the economy’s positive recovery but highlighted ongoing challenges and difficulties. Many businesses and households in major cities have had to transfer or return leased premises, including those in commercial centers and central streets.
Given this reality, the Ministry of Planning and Investment has requested the General Statistics Office to assess the situation regarding closed shops, businesses returning offices, and the state of business in major economic centers.
“It is concerning to see closed shops and businesses vacating offices. Many domestic enterprises are currently struggling and lack the capacity to grow, let alone participate in global value chains and collaborate with FDI enterprises,” shared Minister of Planning and Investment Nguyen Chi Dung.
Numerous empty rental properties on Kim Ma street
Rental prices range from tens of millions to hundreds of millions of VND per month
Vacant shops on Dien Bien Phu street
Business closures even on bustling ancient streets like Hang Bong
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