Commercial townhouse space for rent is one of the real estate segments most affected by the Covid-19 translation in the past year.
The price of commercial townhouses in the centers of major cities like Hanoi and Ho Chi Minh City has decreased unprecedentedly, although these are all “money-making” locations, although still known as the ‘golden land’ for business. the most bustling in Hanoi or the magnificent downtown Saigon.
The trend of “online” sales to the throne, the ground of the townhouses was damp
Streets that used to be considered “golden chickens” of traders in areas around Hoan Kiem Lake (Hanoi) or the central areas of District 1 (Ho Chi Minh City), nowadays there are many street houses. fell into a situation where it was difficult to find tenants, even closed, the rent decreased to 40-50% but no one was watching.
According to many real estate experts, due to the impact of the Covid-19 translation, the retail market has formed a new trend, promoting the strong development of “online” sales, making this form taking the throne. People tend to order online instead of going directly to the store. This is a positive trend, suitable for new technology applications.
Therefore, the places formerly known as “golden street front, golden front” no longer occupy a unique position in retail business. A recent CBRE Vietnam survey showed that 43% of tenants think that revenue will drop by 10-30% in 2020, 61% of tenants said that they have not received assistance from the owner and 27% expect to Homeowners are more supportive because their business is heavily influenced by Covid-19.
The data of this unit in the third quarter of this year showed that the average vacancy rate was still higher than the previous year as retail brands, mainly fashion and food, returned the ground. Some developers still keep preferential policies for existing and new tenants, although the number of projects with incentive policies is not as much as during the Covid-19 earlier this year.
Another research and consultancy unit, Savills Vietnam, also noticed a marked change in the rented area of the food service and fashion industries in the third quarter of 2020, due to customers paying premises or reducing Rent area to cut costs.
“The trend of reducing the leased area or paying inefficient stores will continue in the coming time”, said Ms. Vo Thi Khanh Trang, Head of Apartment for sale in HCMC.
Rent for townhouses is reduced by up to 50%
Surveying the actual rental in the busy streets in the past in District 1 and 3 such as Dong Khoi, Le Loi, Ly Tu Trong, Le Thanh Ton, Nam Ky Khoi Nghia, Truc Bach … now many stores “shop”. latch “. There is only a 300 – 400m long road on Ly Tu Trong street that has 4 houses on the street, closed with “for rent” signboard.
Some landlords believe that they have hung up the rental signs for many months but still cannot rent, even with a 40% discount, but can not find tenants.
As for Hanoi, the situation in many streets in the former places that were considered to be “thriving money” for traders such as around the old town of Hoan Kiem, Hang Bong, Hang Ngang, Dong Xuan, Hang Dao … now The jostle has been reduced much, and even there are many shops hanging signs for renting premises. On other business streets such as Ba Trieu, Hue Street, Chua Boc, Thai Ha … there are also many “for rent” signs. Many premises accept a 30-50% discount to find tenants, but they are still sluggish.
Ms. Vo Khanh Trang, Head of Research at Savills Vietnam Company, said that in the first 10 months of the year, the number of townhouses for rent to the market is increasing, but the occupancy rate is very slow. Even big commercial roads in District 1, Ho Chi Minh City are difficult to rent.
According to Ms. Trang, the current trend of tenants reducing the number and reducing the leased area and converting to e-commerce continues to take place. In particular, in areas where the number of traffic decreases and depends heavily on the number of tourists, tenants still decide to pay the site even though some landlords accept a discount in the short term.
According to the survey, although the war against the epidemic was basically pushed back, the economy gradually returned to a normal state. However, the people’s purchasing power has been reduced. In particular, the reopening of the opening to foreigners has had a significant impact on the economy, of which a part of business in large centers must bear the consequences.