Many premises in Ho Chi Minh City remain vacant for a long time, what is happening?

Despite the economic and commercial situation having improved in the first 6 months of the year, many of the busiest streets in Ho Chi Minh City such as Nguyen Trai (District 5), Le Loi, Dong Khoi, Nguyen Hue, Le Thanh Ton (District 1), Cach Mang Thang Tam (District 1 - Tan Binh), Ba Thang Hai (District 10, District 11) ... are still witnessing the situation of vacant premises for a long time, with signs hanging for rent for months. Many locations that used to be the headquarters of big brands are also in a "closed door" situation.

According to the reporter of Nguoi Lao Dong Newspaper , Nguyen Trai Street, once known as the " fashion street" of Ho Chi Minh City, is now unable to avoid the wave of massive premises return. Not only fashion stores, but also restaurants, dentists, spas, etc. have closed down and returned their premises one after another. In front of many houses, for-rent advertising boards are plastered everywhere, making the street look shabby and lifeless.

Contacting the phone number posted on a premises on Nguyen Trai Street, Mr. Cong Thanh, a real estate broker, said that this house has an area of 4m wide and 12m long, and is being offered for rent at 40 million VND/month.

"The rental conditions are a 3-month deposit and a minimum 3-year contract. If the tenant is renting for a short term, further negotiations can be made. Previously, this space was used for a fashion business, but it has been closed for quite a while now," Mr. Thanh shared.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 1. — The premises on Nguyen Trai Street have been vacant for a long time.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 2.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 3.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 4.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 5.

Hàng loạt mặt bằng ở TP HCM vẫn bỏ trống thời gian dài, điều gì đang xảy ra?- Ảnh 6.

A series of vacant land on this route

Similarly, Ms. Minh Hang, another broker on this route, said that a 4m wide and 12m long house is being rented at a fairly cheap price, only 35 million VND/month, because the owner lives on the upper floor. She introduced customers that they can rent an additional house on Nguyen Trai Street (District 1) for 50 million VND/month if they only want to build a brand.

"If customers do branding, they can rent apartments in better locations, and if they sell products, they can sell online for more efficiency," said Ms. Hang.

According to a survey, the rental price on this route currently ranges from 45 - 60 million VND/month for a whole house with a frontage of 4 - 5m. For larger houses, with a frontage of 8m or more, it can be more than 200 million VND/month.

Brokers all said that current rental prices are 10-30% lower than the end of 2024, but it is very difficult to find others.

Mr. Nguyen Tat Thinh, founder of Housezy Joint Stock Company, commented that the prolonged situation of vacant premises in Ho Chi Minh City is an inevitable consequence of changing consumer behavior combined with the current challenging business context.

According to Mr. Thinh, many industries that once depended on physical stores such as fashion (clothes, shoes, accessories), cosmetics, snacks or food services have quickly adapted to the e-commerce trend.

At the same time, the increasingly uncertain business environment has made investors cautious and careful before deciding to expand or rent out premises for trading. This caution has made the premises market, which was already quiet after the COVID-19 pandemic, even more gloomy.

“It is estimated that rental prices in Ho Chi Minh City have decreased by about 20% depending on the area, due to weak demand. Currently vacant premises can only be improved if they are converted to other uses – such as offices or flexible workspaces,” Mr. Thinh said.