The rental market is quiet.

According to the reporter's records, along Hoang Lien Street there are a series of signs saying "house for rent" and "store for transfer", reflecting the clear slowdown of the commercial real estate segment in the area.

House on the street with sign waiting for tenants.

Not only Hoang Lien Street, many other once bustling streets in Lao Cai City are also in a similar situation. The premises that were once bustling business locations are now deserted, many houses have been vacant for months without tenants.

Through our research, we learned that the main cause was determined to be cost pressure. In the context of many economic difficulties, many small and medium enterprises have been forced to reduce their scale or temporarily suspend operations.

Ms. Nguyen Thi Tuyen Lan, owner of a business on Hoang Lien Street, shared: With online sales, businesses do not have to invest heavily in premises or incur high costs. Meanwhile, direct business stores have to pay a lot of costs, such as: rent, taxes, fees and many other expenses. This makes many small businesses no longer interested in renting business premises.

Statistics from local real estate brokerage offices show that rental prices have decreased significantly compared to the same period last year. Specifically, previously, the rental price for an entire house in prime locations on Hoang Lien Street ranged from 15 to 18 million VND per month, now it has decreased to 10 to 13 million VND. Smaller premises, such as the first floor or living room, previously had rental prices of 6 to 8 million VND, now only 5 to 6 million VND per month.

However, the number of customers asking to rent is still not much, some landlords even accept to reduce the price or be flexible with the contract term, but the situation has not improved.

An important factor leading to the slowdown of the rental market is the strong shift in consumer habits from direct shopping to online shopping. In particular, after the Covid-19 pandemic, online sales have become popular and clearly dominant. Many small businesses and retailers have chosen to operate through social networks and e-commerce platforms instead of investing in physical stores.

Selling online helps reduce many related costs, so many small businesses can easily start or maintain operations with less capital and more flexibility. This creates significant competitive pressure for traditional business models and contributes to changing the landscape of the commercial real estate market.

It is not difficult to see signs for houses for sale or for rent on the streets of Lao Cai city.

Given the above situation, adjusting rental prices reasonably, being flexible in rental policies, combined with supporting communication and promotion, or dividing premises, renting flexibly by the hour, according to demand may be the direction that those who have houses for rent need to consider. Only then can the commercial real estate market develop stably and sustainably in the future.

Source: https://baolaocai.vn/thi-truong-cho-thue-mat-bang-tram-lang-post401621.html