Cold townhouses, quiet "golden land" in the southern part of the province

Once upon a time, the old central area of ​​Hoa Binh, including Hoa Binh, Tan Hoa, and Thong Nhat wards, was considered a “golden land” area. The street-front houses here were a symbol of prosperity, the dream of many families. But now, after the merger of the province and the rapid spread of online consumption, the value of the townhouses has decreased. Falling land prices, vacant premises, and quiet streets reflect a new reality in the transformation process of the southern urban area of ​​the province.

One morning in late October, in the old center of Hoa Binh, Cu Chinh Lan street - once the busiest commercial street in Hoa Binh ward - was now strangely quiet. Even the streets that had been bustling for many years now had many signs "house for sale" and "house for rent". Many of the signs had faded, silently over time, the letters were almost unreadable.

“My house has been for sale for nearly a year, reduced from 6 billion VND to 4.5 billion VND, but no one has asked to buy it. Previously, land in the city center was considered “golden land”, everyone, every household competed to buy it. Now that the province’s administrative center has moved to another place, house prices have dropped sharply, many people don’t even bother to buy a house” - Ms. Loan, owner of a house of more than 80 square meters on Tran Hung Dao street, Hoa Binh ward shared.

People hang signs for rent on Cu Chinh Lan street, Hoa Binh ward.

According to statistics from local trading floors, the price of frontage land in the old central area of ​​Hoa Binh has decreased by an average of 20-30% compared to the period 2023-2024. Some locations that were once traded at 70 million VND/m2 are now being sold for 45-50 million VND, but liquidity is almost zero.

Not only land prices have fallen, but the commercial value of townhouses has also plummeted. Previously, just owning a house with a street frontage could give you peace of mind to start a business, from a clothing store, a pharmacy to a small restaurant. Now, that advantage is gradually disappearing.

“The monthly rent is 7 million VND, but the revenue is not enough to cover electricity and water costs. I am considering transferring the contract and switching to online sales,” said Mr. Tran Duc Thinh, owner of a fashion store in Tan Hoa ward.

Along with the administrative merger process, the rise of e-commerce has been causing traditional business districts to become deserted. Consumers are gradually switching to online shopping, making it increasingly difficult for stores that depend on foot traffic. Chi Lang and Cu Chinh Lan streets, Hoa Binh ward, which were once considered “prime locations”, are now deserted.

According to Mr. Nguyen Van Manh, a long-time local real estate investor, the “cooling off” situation of the old Hoa Binh center is the result of many factors. “Not only due to the administrative merger, but also because the general market weakened after the “virtual fever” period. When land prices were pushed too high in the period of 2022 - 2024, speculators withdrew, leaving behind a series of uninhabited and unrented houses. Now that “supply” exceeds “demand”, cash flow congestion is inevitable,” Mr. Manh analyzed.

After the administrative center moved to the new area, the flow of people and economic activities also shifted. The once crowded streets now became less crowded, causing many households who depended on rentals or small businesses to fall into difficult situations. Some stores put up signs for rent, others were forced to close.

“In the past, if you had a house facing the street, you would be rich. Now, if you have a house facing the street, you don’t know what business to do. If you want to sell, you have to reduce the price, but no one is asking to buy it. If you rent it out, no one will rent it. It’s a pity to leave it empty,” said Mr. Minh, a resident of the North Tran Hung Dao area, with a sigh.

Elsewhere, as night falls, Da Giang Street, once the “night economic center” along the Da River, is also quiet in the evenings these days. A few coffee shops still play music, but few people come in. The yellow lights from the electric poles shining down on the river reflect the quiet sadness of a once prosperous neighborhood. “It feels like everything has stopped temporarily,” said Ms. Hoa, owner of a small restaurant on Da Giang Street.

It is undeniable that e-commerce has fundamentally changed shopping habits. People can now order goods right on their computers and phones. Instead of going out, they sit at home and receive goods at their doorstep. This makes the traditional business model that relies on "front location" gradually lose its advantage. In small urban areas like the old Hoa Binh area, the population density is not large enough to maintain stable revenue, while the cost of renting and operating premises remains high.

“The market has changed, but many people still have the old mentality, thinking that street-front land is forever “gold”. In fact, value is shifting to the digital space, where customers and cash flow are concentrated,” Mr. Manh added.

When provinces and cities merge and expand their space, the old central areas often have to go through a “cooling off” cycle when they lose their advantages. Now, the story of the wards of the old Hoa Binh center is not just a few empty streets or “house for rent” signs. It reflects a major movement of society: the process of urban restructuring, changing consumer behavior and the shift of development centers.

Currently, the real estate market in the old Hoa Binh center is in a "wait and see" state, waiting for signs of recovery, while real buyers are cautiously researching. Everyone is waiting for a boost, which could be an infrastructure project, a new planning policy, or a strong enough economic shift to "awaken" the old Southern center of the province.

Hong Trung

Source: https://baophutho.vn/mat-bang-nha-pho-nguoi-lanh-dat-vang-nbsp-tram-lang-nbsp-giua-nbsp-vung-phia-nam-cua-tinh-242476.htm