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The premises in the alley are rented for 100 million VND/month, the customers run away after hearing this

The continuous price fever in the real estate market not only makes it more difficult to access housing, but also pushes the cost of premises higher, making it difficult for production and business.

Run away because the rental price is too high

Looking for premises to do business earlier this year, Ms. Mien found it extremely difficult when prices climbed to a new level. Ung an adjacent apartment in Mo Lao urban area (Ha Dong) – a small road leading to Mulberry Lane apartment complex, she called to ask and heard the owner quote a price of 100 million VND/month for a floor area of ‚Äč‚Äčabout 140 m2. 3 floors.

With the above rental price, after balancing costs and profit margin, she certainly cannot maintain it for long and the possibility of loss is very high. According to Ms. Mien’s initial calculation, the access to the premises in the alley is a bit small, but in return the price will be “light”. However, in reality, this is not the case, after consulting many places, Ms. Mien found that the current price of the premises is “unreasonable” in many places. The high rent makes it very difficult for many small traders, business households and small businesses to access and maintain post-rent activities. Meanwhile, many landlords can’t afford to rent at high prices and accept to give up.

The premises in the alley are rented for 100 million VND/month, the customers run away after hearing this
The price of premises in locations with small roads that are not convenient for traffic is still high (Photo: NM).

According to a survey of reporters, many shophouses on the streets of To Huu and Ha Dong areas are still vacant. The rental price for each shophouse here ranges from 80-100 million VND/month depending on the area. Popular area at 80 m2, from 3 to 5 floors.

Talk to Dan Tri, GS. Dang Hung Vo – former Deputy Minister of Natural Resources and Environment – said that the unusually rapid increase in real estate prices was the accumulation of “bubbles”. An important issue, according to Mr. Vo, is that when the price is so high, it will be extremely difficult for people who want to use the land and premises later for production, business and service because the rent is too high. . “If it’s expensive to buy, then of course it’s also expensive to rent,” said Mr. Vo.

Mr. Tran Van Lam – Standing member of the Finance and Budget Committee of the National Assembly – is also full of concern when it comes to the current sharp increase in real estate prices. According to Mr. Lam, when the selling price of real estate is pushed up too high, then there are consequences for production and business because the cost of renting space is too high.

The cost of the premises is very large, and even more so after the pandemic

Exchange with Dan Tri, Mr. Nguyen Ngoc Ty – CEO of Non Son chain – said that the current cost of premises is quite large for a retail system, about 38-40% of the total cost.

Also facing difficulties with the problem of space, the director of a fashion retail company said that, although there are nearly a dozen stores, he has not yet dared to think about putting his brand in places with prime locations to meet the needs of customers. opened a branch because it was difficult to bear the huge amount of space.

And Ms. NTN – the owner of a shop whose premises are the base of an apartment building in Duong Noi urban area, said that the business was already very difficult due to the impact of the Covid-19 epidemic, the management unit did not reduce the price, but increased. to more than 60%, starting from April 1 to here.

“The increase is staggering, while the previous price is already high. I am wondering how, if I continue to rent, I will worry that the cost of the premises will “eat up” all the profits, if I don’t rent anymore, I will worry about losing customers, I don’t know where to find space,” said NTN.

Recently, a famous businessman in the field of start-ups, and the founder of a famous chain of workspaces in Hanoi, shared his concern about the rapid increase in real estate prices. face” past time. Accordingly, in 2018, a house next to his house was for sale for VND 32 billion, but recently, the house was sold for VND 43 billion.

“One thing I always wonder is that in the past 3 years, my street has remained the same, nothing has changed, the city has not done anything new in this area, no new roads, no new infrastructure, So why has that piece of land increased to more than tens of billions of dong”, he expressed wonder.

According to this position, when real estate skyrockets in value without anyone adding any value to it, it is “really dangerous”. Many people are “overwhelmed” and rush into the real estate fever, the “land price” is increasingly galloping, although the value is still the same.

“What does that mean? It means you are taking away the opportunity for yourself and your children and grandchildren in the future. Your children and grandchildren could become Steve Jobs, make things like Apple in the future if the land used as a factory is only 100 billion dong, but you’ve already contributed to its price up to 1,000 billion dong, so it won’t be possible to build a factory anymore because the production cost will be very high. high, the products created cannot compete”, the businessman lamented.

The businessman believes that infrastructure is a must for society to develop, when the infrastructure is upgraded, the land use value will increase, people can create more value on that land. As for the real estate business and then raising the land price to make a profit, it will deprive the future of opportunities.

In fact, even without experiencing the extremely high price fever in 2020-2021, the land price in Vietnam has been assessed as expensive in the world. In the publication Main Streets Across the World, published by Cushman & Wakefield at the end of 2019, the price of premises in Ho Chi Minh City (Vietnam) is higher than that of Bangkok (Thailand) and Dubai. (United Arab Emirates – UAE).

(According to Dan Tri)

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