The High Street Woes: Empty Shops on Fashion Streets of Ho Chi Minh City
Walking down Nguyen Trai Street, one of the most famous fashion streets in District 1, Ho Chi Minh City, it’s not hard to spot many storefronts with “for rent” or “for sale” signs. Based on the remaining traces, it can be seen that the previous tenants were mostly from the fashion and beauty industries, such as clothing, cosmetics, beauty services, and spas.
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Once one of the most prominent stores on the street with an 8-meter frontage, 4 floors, and a total area of about 200 square meters, Innisfree cosmetics has vacated its premises at 40-42 Nguyen Trai Street (District 1). According to brokers, the current rent for this location is approximately VND 250 million per month – Photo: Thuong Ngoc |
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Similar to Innisfree, another cosmetics brand, The Body Shop, has also parted ways with its location at 27 Nguyen Trai. With a more modest area, the rent for this address is also softer – VND 140 million per month. This space has found a new tenant and is currently being refurbished – Photo: Thuong Ngoc |
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To remain on the fashion street of Nguyen Trai, Hoang Phuc Fashion opted to downsize and relocate to a new location, just one house away from its previous address. The former Hoang Phuc store location (on the left) now commands a rent of up to VND 320 million per month for its four adjacent storefronts, equivalent to an area of 16×20 meters – Photo: Thuong Ngoc |
Le Van Sy Street is a vital artery connecting District 3 with Tan Binh District, Phu Nhuan District, and Tan Son Nhat International Airport. It has long been a popular destination for culinary, fashion, and beauty establishments. However, in recent years, the trend of vacating premises on this bustling street has become more common.
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Not only did Hoang Phuc leave its premises in District 1, but it also vacated its location on Le Van Sy Street (Tan Binh District) – Photo: Thuong Ngoc |
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Many fashion stores on Le Van Sy Street are looking for new tenants. According to a broker, the property at 184B Le Van Sy Street has an area of 4×10 meters and a rent of VND 23 million per month – Photo: Thuong Ngoc |
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Not just fashion, but cosmetics stores like AB Beauty World and Sociolla have also withdrawn from Le Van Sy Street. It is known that the AB Beauty World premises have an area of 190 square meters and a rent of VND 130 million per month – Photo: Thuong Ngoc |
Another bustling street is Hai Ba Trung Street, a vital transportation link between Districts 1, 3, and Phu Nhuan. Despite its prime location on the frontage of Hai Ba Trung Street, between Dien Bien Phu and Vo Thi Sau Streets, and facing Le Van Tam Park, there are still many vacant premises.
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The address 209 Hai Ba Trung Street (District 3) has changed hands several times and is still awaiting a new tenant. Initially, this location was known as a Skechers store, but the shoe brand later moved to 279 Hai Ba Trung Street. The most recent tenant was Letitia Cosmetics, which opened its store in November 2022 but moved to a new address on Nguyen Van Nguyen Street (District 1) in September 2024. According to brokers, this property has an area of 4×25 meters and a rent of VND 80 million per month. Photo: Thuong Ngoc |
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Similarly, the premises at 225-227 Hai Ba Trung Street used to house the luxury furniture store V-Italy World of Furniture. In August 2022, the men’s vest brand De Obelly and the Korean fashion brand Sohee collaborated to open a Flagship Store here. However, the store is now up for rent, and the websites of the two brands show no remaining stores in Ho Chi Minh City. This property has an area of 8.5×26 meters, with one ground floor and two upper floors, and an elevator. While real estate listings advertise a rent of VND 230 million per month excluding VAT, brokers quote a rent of USD 13,000 per month (approximately VND 331 million) – Photo: Thuong Ngoc |
Even though the Cam Trang Thang 8 Street (Tan Binh District) does not host many major fashion brands, it is still home to numerous clothing stores catering to the affordable segment. However, with the strong development of online clothing shops, many physical stores have struggled to stay afloat and have since closed down.
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Clothing stores on Cam Trang Thang 8 Street (Tan Binh District) typically have frontages of 4-5 meters and lengths of 6-11 meters, with rents starting from VND 20 million per month, according to brokers – Photo: Thuong Ngoc |
Ho Van Hue Street, known for its wedding services, has also seen vacant premises, including former wedding gown studios.
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Brokers inform that the address 176 Ho Van Hue Street (formerly RUA Studio) has an area of 5×18 meters and a rent of VND 28 million per month. Nearby, the premises at 160 Ho Van Hue Street (formerly Dorii Fashion) has a frontage of over 6 meters, a depth of over 7 meters, one ground floor, and two upper floors, with a rent of VND 25 million per month – Photo: Thuong Ngoc |
Is the storefront segment still attractive?
According to a report by Batdongsan.com.vn, the rental yield (rent for 11 months/sale price, assuming a commission cost of 1-month rent) of shophouses in 2024 returned to 2021 levels, reaching approximately 3%. Meanwhile, DKRA stated that the secondary market prices for houses and villas in Ho Chi Minh City increased by an average of 6% in 2024. These reports indicate that rental prices for shophouses in the city have increased significantly over the past year.
Specifically, according to data from Batdongsan.com.vn, the rent at 225-227 Hai Ba Trung Street (formerly De Obelly) has increased by more than 8%, while the premises at 236K Le Van Sy Street (formerly AB Beauty World) have seen an 11% increase in the past year. In contrast, the premises on Nguyen Trai Street mentioned above (formerly Hoang Phuc and Innisfree) have recorded a decrease of more than 5%.
Mr. Dinh Minh Tuan, Southern Region Director of Batdongsan.com.vn, stated that storefront properties are showing a significant recovery. This recovery refers to a decrease in the number of vacant properties. Two years ago, the vacancy rate was as high as 60-70%, while currently, it stands at only 20-30%. This indicates that while vacant storefronts still exist, the trend of vacating these properties has diminished.
Consequently, on fashion streets, the number of vacant storefronts is not as high as before. Challenges remain, as rents have not returned to their 2018-2019 peaks and have stagnated for the past 3-4 years. Both landlords and tenants face difficulties due to changing consumer habits, with a shift towards online shopping and less time spent on in-person shopping. Additionally, the “all-in-one” concept offered by shopping malls attracts customers away from standalone stores.
Previous tenants often rented properties for both branding and sales purposes. In contrast, new tenants in 2025 will likely focus more on sales.
Landlords have also adjusted their rental rates and contract terms to be more flexible. Instead of a one-time large payment, they now offer more manageable installments, with subsequent payments dependent on the tenant’s business performance.
– 10:17 20/03/2025
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