Real Estate | Commercial rents face a new trend

Local retailers with businesses located in the central district say that the high rents they are required to pay are becoming unsustainable, given the slowdown in the region’s economy and a consequent drop in sales.
A real estate agent acknowledges that the property owners have apparently stopped increasing commercial rents for luxury shops. “The landlords dare not ask for higher rents now. They might not increase the rents. However, it is an unrealistic practice at the moment to ask the landlords to reduce the rent,” Ho Sio Hang told TDM.
A shop owner interviewed by the local broadcaster recognized that their store traffic is declining, while another said that he has been forced to relocate his business. “I initially rented another shop in Nam Van, but the rent over there is too expensive, so I moved here,” he said.
As a consequence of these difficulties, retailers are becoming less bold in expanding their businesses. “Shop expansion is not as aggressive as before. Maybe there are fewer competitors for shops,” Ho Sio Hang commented.