Citadel of street vendors, the rental price is still more than half a billion VND/month

April 20, 2022 06:26 GMT+7

Running across Ngo Duc Ke Street (District 1, Ho Chi Minh City) on a weekend afternoon, it is not difficult to see the scene of young people sipping grilled rice paper while chatting with a cup of tea and orange juice.

Ms. Mai, a street vendor here for nearly 30 years, said that in the past, she could only store a small wardrobe, but now she can make use of the sidewalk to place 2 rows of chairs for guests to sit and drink. That’s because more than half of the premises in this “golden quarter” have been vacant.

It is worth mentioning that despite the absence of tenants for the past 3 years, the premises are still for sale at extremely high prices.

For example, the premises at 44-46 Ngo Duc Ke, which is being used by the owner of the baked rice paper and tea, currently has a rental price of 550 million VND/month for a 5-year contract. This listing was posted on Cho Tot Nha 4 months ago. The data of the real estate website shows that this 8×16 m2 ground floor plan with an area of ​​​​8×16 m is the most expensive in the area.

The premises with a rental price of 550 million VND/month are being used as a place to sell goods. Photo: Duy Hieu.

On average, tenants have to pay 1.5-2 million VND/month for each square meter used here. Possessing a prime location near the iconic Bitexco building and Nguyen Hue pedestrian street, even though it is only about 400 meters long, this street used to gather more than a dozen large coffee and milk tea shops.

Currently, stretching on Ngo Duc Ke Street are plastic tables and chairs and gathered furniture of street vendors, sidewalk snacks and temporary parked motorbikes.

In this situation, Ho Tung Mau Street also has an abundant supply of premises for rent. The average rent here is at 200 million VND/month for a premises with a usable area of ​​​​about 220 m2.

The high rent, even increasing compared to the time before Tet, makes tenants no longer too interested in the central area. Up to now, although a new normal life has been established in Ho Chi Minh City for more than half a year, the amount of interest in rental space in the top 5 streets with the highest rental prices in District 1 includes: Hai Trieu, Dong Khoi, Ho Tung Mau, Nguyen Hue, Ngo Duc Ke are only equivalent to the end of 2021 when the city opens.

While landlords keep rents, do not support customers like during the epidemic period, tenants are more and more inclined to find locations with more reasonable prices. This is the reason the outer districts such as Districts 4, 6, 7 and Binh Thanh have a strong demand for rental space.

For example, in Phu Nhuan district, customers only need to spend 78 million VND/month to rent an average space of 200 m2. A similar premises in District 7 has also reduced the rent to about 110 million VND/month. The average rental price for a space of about 230 m2 in District 3 is at VND 97 million/month.

Even at Nguyen Trai fashion street (District 5), where a vibrant tenant situation is being recorded, premises with a relatively large area of ​​270-300 m2 have an average rental price of 65 million VND. /month before Tet, now it has also reduced to 55 million VND / month.

However, Cho Tot Nha website said that the level of interest in rental space in the center of District 1 has gradually improved since the beginning of April.

According to zingnews.vn