Growing sea of ‘For rent’ signs signals Hanoi retail woes

As observed by a Tuoi Tre (Youth) online newspaper reporter, storefronts are displaying notices such as ‘House for Rent,’ ‘Commercial Space for Rent,’ and ‘Shop for Rent’ on numerous streets throughout the city.

Vacant properties can be seen along Quang Trung, Lang, Cau Giay, Nguyen Trai, Kim Ma, Ma May and Trang Thi Streets, where shuttered premises await new tenants.

One of the most striking examples is Quang Trung Street near La Khe Station, where four properties within a stretch of less than 100 meters are currently available for lease.

Some landlords are renting out only the ground floor, while others are offering entire buildings.

Rental prices vary depending on location and size, with commercial spaces of around 40 square meters typically listed at between VND12 million and VND20 million (US$460-$770) per month.

Landlords are also becoming more flexible in an effort to attract tenants.

While many previously required six months to a year of rent upfront, an increasing number now accept payments every three months.

Even so, many properties have remained vacant for months.

Nguyen Thi Huyen, who owns a rental property on Quang Trung Street, said she has been unable to secure a tenant since the Lunar New Year holiday, which lasted from February 14 to 22.

“Rental rates have fallen to about 80 percent of last year’s level, but many prospective tenants ask about the price and never return,” she said.

Real estate experts said that rents have declined compared with previous years, but remain high relative to the difficult business environment.

Many retailers have responded by downsizing, relocating to smaller premises, or giving up expensive street-front locations altogether.

Dr. Nguyen Van Dinh, vice-chairman of the Vietnam National Real Estate Association, said the rapid expansion of e-commerce has changed consumer shopping habits, particularly in urban areas.

Besides, the growth of modern shopping malls has intensified pressure on traditional street-front businesses.

Consumers visit malls not only to shop but also to enjoy entertainment and lifestyle services, including cinemas, restaurants and beauty treatments, reducing the appeal of standalone retail outlets.