Le Loi Street is located in the center of District 1, Ho Chi Minh City, nearly 1km long, stretching from the front of Ben Thanh Market to the front of the City Theater. In a prime location, this street has many domestic and foreign tourists passing by, and was also a bustling place for shopping and business.
The underground station of Metro Line 1 Ben Thanh - Suoi Tien is also being built under this road. For the past 8 years, the road has been fenced off for construction and the land has only been returned on April 30 this year. Since then, the land rental price has also "escalated".
A house with a frontage of 900 square meters, 15 meters wide and 60 meters long, is being rented for 600 million VND/month (20 million/day).
Another site, located at 2 frontages of Le Loi - Nam Ky Khoi Nghia, has an area of 25x24m (600m2), a structure of 1 basement and 8 floors, and is being offered for rent at 360 million VND/month (12 million/day). The broker said to sign a long-term lease contract, deposit and payment for 3 months.
Another smaller space of 200 square meters, 5 meters wide and 40 meters long, is being offered for rent at 230 million VND/month (negotiable). The broker said the owner wants a long-term lease.
Another floor plan measuring 8m wide and 20m long (160m2 in area) is being offered for rent at VND190 million/month. The house has 1 ground floor and 7 upper floors. The broker said the owner prefers tenants who want to build a cosmetics, fashion or dental center.
According to the survey, the rental price of premises in Le Loi area is not less than 100 million VND/m2 because they are all large in area. The apartments opposite the commercial center (Saigon Center) have much higher rental prices, or corner apartments, 2 frontages, new houses... are advertised at better prices.
However, in contrast to high rents, this area has many vacant premises, closed and quietly looking for tenants for many months but unable to fill.
According to a reporter's survey on the morning of December 8, 9 consecutive facades have signs for rent.
Along with the lack of tenants, the street also becomes less aesthetically pleasing as the doors are covered with graffiti, full of for rent signs or damaged and degraded.
The sluggish retail space for rent on Le Loi is not an isolated case in Ho Chi Minh City recently. Many other streets are in a similar situation.
Experts say the economic downturn and declining consumption have affected people’s shopping. High rents of hundreds of millions of dong per month are a financial burden for tenants, with concerns that their income cannot be compensated.
In addition, experts pointed out that people's consumption trends after the Covid epidemic have also changed, gradually having the habit of shopping online rather than going directly to stores.
Another trend is that with expensive rental prices, stores are also "moving" to areas near the center to reduce costs.
Location: Le Loi Street, District 1, HCMC (Photo: Coc Coc).
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