The rental space is still empty… because of the high price?

Posted for a whole year without tenants because the price was so high

As noted by reporters, Leased Premises on many busy streets of Hanoi are still in a state of hanging signs looking for tenants. Worth mentioning, there are signs posted for rent this year.

For example, at Minh Khai street (Hai Ba Trung district, Hanoi), a house with an area of ​​​​200 m2, 7 floors high is being listed for rent at 500 million VND/month; 40 m2 house, newly built 4 floors high cost 40 million VND/month.

Minh Khai Street (Hai Ba Trung District, Hanoi) has many premises for rent (Photo: Dan Tri)

Similarly, in the busiest street in Hanoi like Hue street, house rental prices are also high. Street house 160 m2, 7.5 floors high, rental price is 220 million VND/month; house 105 m2, 7 floors high, rent 140 million VND/month.

In the central streets of Hoan Kiem district, the average rental space is at the highest level. The price of a house on Dinh Tien Hoang street (Hoan Kiem, Hanoi) with an area of ​​400 m2 has a rental price of 550 million VND/month; House for rent with an area of ​​only 10 m2 in this street is also priced at 17 million VND/month. Or the front of Hang Bong street, the rental price for a house of 200 m2 is 120 million VND/month.

According to the Vietnam Association of Realtors (VARS), in the Hanoi market, the ground floor rent in the first quarter of this year increased by about 5% compared to the previous quarter with a stable occupancy rate. Ho Chi Minh City is similar with large tenants leading the market demand.

VARS expects the rental price of premises in Ho Chi Minh City to grow by 1.5 – 3.5% next year; In Hanoi, because the impact of the epidemic is not really clear, the increase in space rental prices is forecasted to be lower, at about 1-1.5%.

Tenant complains

Although the rental space is diverse, many tenants complain about the high price. There have been tenants looking for another form of business instead of needing space.

Mr. Nguyen Quoc Hau (Thanh Xuan, Hanoi) said that he just rented a house on Nguyen Trai street to sell clean fruits. The house is only 20 m2 wide but costs 20 million VND/month.

“The rent for 1 month is 20 million dong, but I have to pay the landlord for 12 consecutive months is 240 million dong. Not to mention after 12 months, the landlord will increase the price,” Mr. Hau said and revealed his business plan. His business had to change a lot after a large amount of capital was pushed into paying rent.

Tenants complain about the price of the premises being too high (Photo: Dan Tri).

And Mr. Tran Van Cuong (Hoang Mai, Hanoi) said, before that he rented a house on Nam Du street with an area of ​​50 m2 to open a shop selling phone accessories for 5 million VND/m2. Until the Covid-19 epidemic, business activities were difficult, he was forced to pay the ground.

However, recently Mr. Cuong went to find space to reopen the store, but the rental price has doubled before. A 4-level house on Nam Du, Linh Nam, Vinh Hung streets with an area of ​​only about 15-20 m2 also has a rental price of 8-12 million VND/month.

“The rental price is much higher than it was before the Covid-19 epidemic. Moreover, the landlord also asked to close for 6 months, making it more difficult to rent the premises,” said Mr. Cuong.

Similarly, Mr. Tran Duy The (Hoang Mai, Hanoi) also shared that he has been looking for space for rent for many months to reopen a restaurant. However, the more he searched, the more difficult it became for him to rent because of the high price and the landlord’s many “forced” constraints to rent for a long time.

“In order to open a restaurant, I have to rent a space of 100 -200 m2. But in Dinh Cong area (Hoang Mai, Hanoi), the rental area is also about 30 – 50 million VND/month. Depending on the location, with this rental price, it will be difficult to make a profit, not to mention this is still the post-pandemic recovery phase,” said Mr. The.

According to Mr. The, his plan to start a restaurant business is temporarily shelved due to the high rental price. For the time being, he uses his home to run a fast food business and sell it online.

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