HCMC townhouse rents fall as big firms vacate

Nguyen, who had leased out his townhouse worth VND40 billion (US$1.7 million) in Go Vap District to a big retailer for over the past few years, said the monthly rent has declined by over 36 percent.

After the retailer, who paid him VND110 million a month, left the townhouse early this year, the new tenant is only playing VND70 million.

Another landlord, Hoan, had leased out a townhouse to a big retailer for VND80 million a month. Since the retailer left late last year, he could not find new tenants willing to pay the same rent.

After waiting for more than six months, leaving the townhouse vacant, he reduced the rent by 30 percent for a new tenant – a consumer goods trader – this month.

In June 2020, a Pizza firm left a townhouse in Go Vap District after paying a monthly rent of VND65 million for several years. The landlord could not find the new tenant for nearly two years after, and when one finally rented the place, monthly rent dropped to VND35 million.

Dat, a realtor, said townhouse rents in downtown areas like District 1 have decreased by about 25 percent after big food and drink companies and retailers left, and many houses have been left vacant since Covid-19 pandemic broke out.

Trang Minh Ha, chairman of business consulting firm North Stars Asia, said that in the 2016-2018 period, retail giants had competed for space to quickly develop their chains, pushing up monthly rents. However, the pandemic has cooled down the market.

Ha said that townhouses in prime locations can still be leased out to retailers at slightly lower rates, but owners of houses in other locations should slash rents significantly to get new tenants.