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Commercial Property for Rent in Ho Chi Minh City: Vacant and Struggling, Yet Prices Remain High

The plight of vacant commercial spaces in Ho Chi Minh City's central district persists. Despite significant rent reductions offered by landlords, tenants remain elusive. This trend underscores the evolving dynamics of the city's business landscape, prompting a reevaluation of strategies to revitalize these dormant spaces.

Administrator

20 July, 2024

According to the Ho Chi Minh City Statistics Office, in the first half of 2024, out of 25,248 newly established enterprises in the city, there were 21,205 enterprises in the trade and service industry with a total registered capital of VND 179,577 billion.

However, contrary to the city’s economic recovery, the situation of vacant retail business premises in the central area shows no signs of stopping.

Two vacant premises on Cao Thang Street, District 3. Photo: Ngoc Thanh

Observations on bustling business streets of Ho Chi Minh City such as Dong Khoi, Le Loi, Ly Tu Trong, Nguyen Trai, Le Van Sy, and Phan Xich Long reveal that it is not difficult to spot vacant shops available for rent. The facades of these shophouses are filled with signs like “for rent” and phone numbers.

A vacant premises on Hai Ba Trung Street, District 1, has been left unattended and vandalized. Photo: Ngoc Thanh

According to a real estate broker offering a premises for rent near Cho Tan Dinh, District 1, the 500-square-meter space is available for VND 200 million per month.

“This price is already 15% lower than the previous rental price. This is the lowest price, and it cannot be reduced further. If agreed, the landlord will waive the rental fee for 20 to 30 days for renovation and repair,” said the broker.

It is known that the premises was previously used as a cosmetics store. However, since the middle of 2023, after the cosmetics store vacated the premises, the landlord has not been able to find a new tenant.

A vacant premises on Hai Ba Trung Street, District 3. Photo: Ngoc Thanh

On Le Van Sy and Hai Ba Trung streets, two of the busiest fashion business streets in Ho Chi Minh City, the wave of returning premises quietly continues. The image of fashion stores side by side is gradually disappearing.

Observations show that, on average, out of 10 adjacent stores on these two streets, at least one store will display a “for rent” sign.

A man resting in front of an unoccupied premises on Le Van Sy Street, District 3. Photo: Ngoc Thanh

A resident on Nguyen Thi Minh Khai Street, District 1, shared that a premises has been vacant for more than two years and has not found a tenant. Occasionally, potential tenants come to view the property but do not finalize the deal. Upon inquiry, it is revealed that the rental price is still too high.

Moreover, a spacious premises spanning hundreds of square meters on Hai Ba Trung Street in District 1 has been temporarily converted into a parking lot for nearby restaurants due to its high rental price, remaining vacant for over a year.

A house on Nguyen Trai Street with multiple phone numbers posted for rent. Photo: Ngoc Thanh

According to market research data, rental prices for premises in District 1, Ho Chi Minh City, range from VND 50 million to VND 400 million per month, depending on the location and area. The average rental price for premises in District 3 is about VND 192 million per month, while in District 5, it is approximately VND 168 million per month.

To quickly rent out their premises, some landlords are willing to offer discounts of 10%-15% and provide one month of free renovation time. However, according to experts, these incentives are still not enough to retain existing tenants or attract new ones.

By Anh Phuong