A storefront on Vo Van Tan Street (District 3), formerly a seafood restaurant, is now closed with a "for rent" sign hanging.

Amid economic challenges, storefront properties in the central areas of HCMC, designated for business premises leasing, are facing a scenario of emptiness and a dearth of tenants.

Despite proactive efforts by landlords to substantially lower rental rates, there is a simultaneous trend of businesses relinquishing these premises across the inner city districts, particularly in highly sought-after locations.

Many large premises for business leasing in District 3 have been vacant for several consecutive months.

A premises with a spacious storefront has been vacant for many days on Hai Ba Trung Street (Tan Dinh Ward, District 1).

Along the streets in the city center, like Tran Hung Dao, Nguyen Thai Hoc, and Nguyen Trai, it's easy to spot storefronts displaying "for rent" signs, closed and vacant.

Specifically, within just a 2km stretch of Hai Ba Trung Street, from Tan Dinh Market to the Tran Hung Dao statue in District 1, there are at least 30 storefronts of various sizes advertising rental opportunities.

Most of these properties boast spacious frontages, with rental prices fluctuating between VND130 million and VND250 million per month.

According to real estate agents, these rental rates have seen a reduction of around 20 percent compared to the previous year.

Furthermore, landlords are waiving the first 1-2 months' rent, allowing tenants to conduct necessary repairs on the premises. Despite being deemed an unprecedented and favorable incentive by real estate brokers, there are still no takers.

Ly Tu Trong Street in Ben Thanh Ward (District 1) sees numerous closed-down business storefronts.

At the intersection of Ly Tu Trong and Truong Dinh streets, a double-fronted property with a "for rent" sign has been seeking tenants for the past two years.

According to real estate brokers, the property covers an area of approximately 500 square meters, comprising one ground floor and three upper floors, and it is available for rent at a rate of VND800 million per month.

The lease agreement requires a commitment of over five years. This space formerly operated as a Japanese restaurant but closed during the peak of the pandemic.

For the past two years, a property with dual frontage at the intersection of Ly Tu Trong and Truong Dinh (District 1) has remained vacant despite being advertised for rent.

According to Mr. Vo Hong Thang, Director of Consulting Services and Project Development at real estate consultancy DKRA Vietnam, the current situation is exceptionally challenging.

Given the economic conditions in HCMC, there is a foreseeable increase in the number of vacant properties in the near future.

Source: SGGP