"Rich people's street" Phu My Hung is deserted, rental space has long-term signs, no tenants

(NLDO) - Phu My Hung urban area, known as the "rich people's street", now has a completely different look.

Rows of shophouses that used to be filled with luxury restaurants and high-end brands are now dotted with long-term rental signs.

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.

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