Retail space lease in Hanoi seen hitting the wall
Retail space lease in Hanoi seen hitting the wall
Many prime retail spaces in Hanoi remain vacant despite being up for lease, a surprising trend during the year-end season typically marked by bustling shopping and dining activities.
A 1,656 square-meter retail space is available for lease at a prime location in Hoan Kiem District, Hanoi. |
Economic experts attribute the lack of interest in retail space leasing to the growing popularity of online shopping, which has shifted consumer habits.
Key streets such as Hang Dieu and Bat Dan in Hoan Kiem District now feature several unoccupied retail spaces.
Similarly, popular areas in Dong Da, Cau Giay, and Hai Ba Trung Districts, often referred to as the 'paradise of fashion and food,' are also witnessing a slump in retail leasing activity.
Nguyen The Diep, vice-president of the Hanoi Real Estate Club, noted on Sunday that the period leading up to the Lunar New Year is traditionally a busy time for Hanoi, with streets teeming with merchants and shoppers.
However, the rise of online shopping has significantly diminished the appeal of prime retail spaces.
“Not long ago, people would flock to streets like Hang Ngang and Hang Dao in Hoan Kiem District or Chua Boc in Dong Da District to shop for clothes,” Diep said. “Now, their habits have shifted. They prefer e-commerce platforms, where a wide selection of discounted products is readily available.”
Besides, major fashion brands are operating official stores on e-commerce platforms, making it convenient for their customers to shop online.
“Online sales have become more dynamic than traditional retail,” Diep stressed.
He hinted at cutting retail space rental and upgrading these premises to make them more attractive to occupants.
Meanwhile, tenants should offer special products and target tourists to increase foot traffic, he said, adding that sellers should also enhance their online sales.
|
|
| Hue Street in Hai Ba Trung District, Hanoi, known as an ideal site for business activities, is now seeing many spaces remain unoccupied. |
According to Nguyen Van Dinh, chairman of the Vietnam Association of Real Estate Brokers, the number of deserted retail spaces in the city center has increased significantly because of the impact of the COVID-19 pandemic.
“The pandemic forced residents to stay at home and limit their contact with others, so their shopping habits changed, shifting from in-person to online,” he stated.
Door-to-door delivery services have attracted customers, he said.
He suggested that landlords should ease the burden on tenants by lowering rental prices to help reduce vacancies.
Dinh Minh Tuan, southern region director at Batdongsan.com.vn, highlighted several factors contributing to the sluggish retail space market, including shifts in shopping habits during and after the pandemic.
"With more people owning cars, the tradition of strolling through streets to shop is gradually fading," Tuan explained.
He also pointed out that many shopping malls now feature playgrounds and entertainment areas to attract families with children, creating added competition for smaller shops.
