Many "golden land" plots in Ho Chi Minh City are vacant for a long time

According to records, many prime locations on Nguyen Luong Bang Street, considered the lifeblood of Phu My Hung urban area, have been vacant for a long time.

Other streets that were once considered "million-dollar commercial axes" such as Ton Dat Tien, Nguyen Van Linh or Bui Bang Doan, many shophouses are closed and quiet, without a single person. Some places are covered in dust, showing signs of deterioration due to being vacant for many months.

Currently, the rental price of premises in Phu My Hung is divided by area, ranging from 50 - 200 million VND/month, in some places, calculated in USD, up to 10,000 - 60,000 USD/month.

Faced with many negative business fluctuations after the pandemic, businesses could not withstand the pressure of high costs and rents, so they had to close and return the premises. Although landlords have reduced rents by 10-20% compared to the peak period, tenants are still hesitant and even refuse to negotiate.

The main reason is believed to be due to changes in consumer behavior after the pandemic. People prioritize online shopping, small-scale F&B business models that save operating costs are on the rise. Meanwhile, rental costs in Phu My Hung are still considered high compared to the revenue that can be achieved.

The owner of a milk tea chain that used to operate here shared: "The cost of the premises accounts for nearly 50% of the total cost, but the number of customers is not enough to compensate. We had to close after 6 months of trying."

Not only individual businesses, but also big brands are gradually withdrawing or downsizing. Maintaining operations in high-end residential areas is no longer as easy as before when consumers are increasingly calculating their spending.

Phu My Hung is deserted, premises for rent have long-term signs hanging

Experts say that in order for the Phu My Hung real estate market to become vibrant again, there needs to be flexibility from landlords, such as more substantial rent reductions, subdivision of areas, or conversion of functions into offices or co-working spaces to suit new needs.

Not only Phu My Hung but also a series of other business premises in Ho Chi Minh City are falling into a state of prolonged vacancy, even in locations once considered "golden land".

Along busy streets such as Nguyen Trai (District 5), Le Loi, Dong Khoi, Nguyen Hue, Le Thanh Ton (District 1) or Cach Mang Thang Tam (from District 1 to Tan Binh), Ba Thang Hai (District 10 - 11), it is not difficult to see a series of closed premises with for rent signs. Notably, many of them used to be the headquarters of big brands.

Vacant premises on Nguyen Thi Minh Khai Street, District 1

Nguyen Trai Street (District 1, District 5), once known as the " fashion street", is now also not immune to the wave of mass premises being returned. Not only clothing brands, but also restaurants, dental clinics, and health care services have closed one after another, leaving behind a long row of "for rent" signs that look shabby and lifeless.

Empty space on Le Thanh Ton Street, District 1

Mr. Huu Loi, an employee at a fashion store on Nguyen Trai Street (District 5), said that this situation is becoming more and more common, not only in the fashion industry but also in other industries. The main reason, according to him, is the shift in consumer habits to online shopping, causing a significant decrease in the number of customers coming to the store.

In addition, Nguyen Trai Street is no longer the top destination for shoppers, as many customers have moved to areas such as Huynh Van Banh (Phu Nhuan District) or to large shopping malls - where the space is more modern and convenient.

"If you want to rent a space here to do fashion business, you have to consider very carefully, because it is easy to lose money and close down early. But if you open a restaurant or beverage shop, you still have a chance to survive because there is less competition" - Mr. Loi shared.

Source: https://nld.com.vn/pho-nha-giau-phu-my-hung-dieu-hiu-mat-bang-cho-thue-treo-bang-dai-ngay-vang-nguoi-thue-196250622114338586.htm