‘Golden land’ for rent is sluggish, homeowners lose billions of money every year
In the past two years, each escalating epidemic is also a time when the rental market is quiet due to a sharp drop in demand. Business people return premises due to the inability to survive the social distances. Every street in the center of Hanoi is full of sea for rent. |
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Located close to Hoan Kiem Lake, dozens of souvenir shops on Hang Gai street are closed. Although on March 15, Vietnam has completely opened up to tourism activities, but this street is still gloomy because of the absence of tourists. Some shops still exist, still hanging signs but not in business, most of the rented space has been transferred and returned. |
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Due to mainly serving tourists, especially foreign guests, the art and craft shops have gradually closed in the past 2 years due to the freeze in tourism. Up to now, although tourism is open, many shops operating in this field have not set a date for reopening. |
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Restaurants and restaurants in the center of the old town are still “closed and bolted” in many places. |
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Shop rental signs are hanging all over the street, the occupancy rate has not prospered. However, according to statistics on the website batdongsan.com.vn, after the Lunar New Year, when they got used to the mentality of “living with the epidemic”, the 5K regulations were relaxed, many localities gradually passed the peak of the epidemic. Adjusting to the new normal, business activities gradually return, the demand for rental properties in Hanoi gradually increases again. |
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Notably, interest in offices for rent also increased by 17%, while before it was almost flat. However, the segment of shops, kiosks and townhouses showed a negligible increase in interest. Although the search volume did not increase much, it is noteworthy that the number of advertisements for rental kiosks and townhouses increased sharply. |
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The house has the largest frontage on Hang Ngang Street, and for more than 2 years, it has been hanging a sign looking for tenants for more than 2 years. With the rental price of 150 million VND/month, in 2 years of being left empty, the owner lost about 4 billion VND in revenue. During the time of finding tenants, this “luxury” space was requisitioned as a place to sell popular clothes |
Big brands “silently” find premises
According to a report by market research unit Savills, over the past time, big names at home and abroad such as Uniqlo, Muji, The Gioi Di Dong, Con Cung… have continuously launched new selling points with the scale of thousands of them. m2, showing the rapid recovery of the retail market in Vietnam.
Many international brands have also restarted their launch plans in Vietnam after a long delay due to the epidemic. This is a factor that helps to restore and revive the vitality of the rental market and commercial centers.
According to CBRE’s calculations, in 2022, retail rents are expected to recover by 1.5-3.5%. In 2023, rents are expected to increase further along with new supply in the CBD.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
