Although the Covid-19 pandemic has passed for a while, many premises in the center of Hanoi are still vacant for several months to a year. Many landlords have put up signs for rent for a long time but still cannot find tenants.
Many premises on the streets of Hanoi have been left with signs for long-term lease. Photo: Quynh Anh
Considered as the "golden land" in the capital, attracting many visitors and tourists , with bustling business, but the premises on major streets such as Nguyen Thai Hoc, Hang Bong, Hang Da, Xa Dan, Giai Phong,... are in a gloomy state, many shops are closed with signs for rent, shops for rent.
Even many premises have been for rent for a long time, some have been left empty for a whole year, but the landlord still refuses to reduce the rent.
Many business premises are also closed. Photo: Quynh Anh
Struggling to find a location to open another fashion store, Ms. Nguyen Hong Hanh (35 years old, Dong Da, Hanoi) said that although she has searched for many locations, she has not yet signed a contract because the landlords have offered too high a price.
“For the past month, I have been looking for premises everywhere. Many premises are very nice, facing the main road, new houses, but when I asked for the price, I was “shocked” because the price was too high compared to the capital invested in the business, so I could not rent it. Premises in worse locations are cheaper but still high compared to the general price level before,” said Ms. Hanh.
According to Ms. Hanh, because the rental price is not cheap, just a few months of slow business can cause business owners to suffer due to rental costs, so she must consider carefully before deciding to invest.
“With the expensive rental price, this space will be suitable for brands and store chains with great economic potential, or they want to expand the chain to quickly reach customers, then they can maintain it, but small businesses cannot afford the cost of the space,” Ms. Hanh added.
During this time, homeowners are offering prices that are quite high compared to before. Photo: Quynh Anh
Hanging a house for rent sign on Giai Phong Street, Mr. Hoang Long (the owner) said that right after posting the rental space, many customers asked to rent it for spa services, fashion stores, pharmacies... but many landlords returned the space as soon as the contract expired because of business losses.
“My house has been for rent for over a month now, but I keep getting inquiries. The house is right on a main road, near universities, and is almost always bustling with traffic and business, but the sign is covered in dust and I still haven’t seen any tenants,” Long shared.
Many for rent signs are covered in dust because they have been hung for a long time but have no tenants. Photo: Quynh Anh
Accordingly, many large urban areas currently have quite high rental prices for business premises compared to before. For example, in the Hoan Kiem area, rental prices for townhouses range from 1 - 5 million VND/m2/month. As for houses in alleys and small streets, the prices are lower from 10 - 30 million VND/house/month, depending on the area and area.
Not only that, most of the current rental contracts fluctuate by about 3-5%/year, usually after 2-3 years, the rental price will increase by about 10%. This is also one of the main reasons for the increasing rental price.
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