On a recent weekday morning at Mizuki Park urban area in Binh Hung Commune, HCMC, dozens of shophouses located at the podium levels of apartment buildings facing internal roads were shuttered. Numerous signs reading "Retail Space for Rent," "Shophouse for Lease," and "Contact Owner Directly" were displayed prominently across the storefronts.

Many of these shophouses were completed long ago but show no signs of business activity. Some were recently closed stores, while others have remained vacant for an extended period.

Among the quiet rows of properties, VietNamNet contacted T., the owner of a shophouse, through the phone number listed on a rental sign. T. said he purchased the property in 2022 for nearly VND18 billion, expecting to earn VND60-80 million in monthly rental income.

"When I bought it, I believed this area would quickly develop into a bustling commercial street because the residential population was growing rapidly. The reality has been very different from what I expected," he said.

Three years after taking possession, the "Retail Space for Rent" sign in front of the property has faded under the sun. Rental rates have been repeatedly reduced, yet finding tenants remains difficult.

"The asset is still there, but the cash flow is almost nonexistent," T. said with a sigh.

At one row of shophouses in Mizuki Park, VietNamNet observed only a handful of pedestrians. Nearly half of the units in the row were vacant.

The situation is not unique to Mizuki Park. In many urban developments in HCMC, particularly large-scale projects with hundreds of shophouses, prolonged vacancies have become a major challenge for investors.

V., a leasing specialist at a brokerage firm in Thu Duc, said many owners have entrusted their shophouses in the Sala Urban Area to agencies for leasing, but finding suitable tenants remains difficult.

According to V., about four years ago, a typical shophouse in Sala was priced at around VND48-50 billion. During the market boom, many units were listed for VND60-100 billion, while those on major roads could exceed VND100 billion.

Although Sala is considered one of HCMC's most commercially viable urban areas, many shophouses there still face low rental yields relative to asset values.

"Some shophouses on Nguyen Co Thach Street are currently being offered for lease at around VND160 million per month, while the property value has exceeded VND100 billion. That translates into a rental yield of less than 2 percent per year. It shows that payback periods are becoming longer and returns are no longer as attractive as investors previously expected," V. said.

Selling prices rise 

According to Savills Vietnam's Q1 2026 report, the property market is entering a period of strong correction, with investors increasingly focusing on actual operating performance rather than relying solely on capital appreciation.

Savills noted that demand for market-rate commercial real estate is now centered more on cash-flow generation and operational efficiency. As market liquidity remains uneven, high-value assets with weak income-generating capabilities are facing significant pressure.

For the shophouse segment, the main challenge is no longer pricing but the ability to attract tenants. Many projects were developed with the expectation of becoming vibrant commercial streets, but residential occupancy rates and supporting service ecosystems have not grown quickly enough, resulting in lower-than-expected business activity.

In addition, Savills' HCMC retail market report for Q1 2026 found that retailers increasingly prefer professionally managed spaces with stable customer traffic and clear revenue-generating potential.

While shopping malls continue to attract tenants, many shophouses in newly developed urban areas are struggling to fill vacant spaces.

Nguyen Quoc Anh, deputy CEO of Batdongsan.com.vn, said the real estate market is experiencing a clear shift in investment strategy. In the past, many investors prioritized assets with strong price appreciation potential, but attention is now turning toward properties that can be actively utilized and generate stable cash flow.

He believes that in an increasingly selective market, properties with genuine end-user demand, strong rental potential and good liquidity will enjoy significant advantages.

Commercial streets that have already established dense residential communities and stable customer traffic are likely to remain attractive, while shophouse developments built ahead of actual demand will continue to face difficulties in commercial operations.

Meanwhile, selling prices of shophouses at many projects remain elevated, extending investment payback periods and reducing returns. 

Anh Phuong