The Ho Chi Minh City Statistics Office reports that in the first half of 2024, the commerce and service sectors saw the establishment of 21,205 out of 25,248 new businesses, with a combined registered capital of nearly 180 trillion VND.

Despite signs of economic recovery in the city, retail vacancy rates in central areas continue to stay high. Prominent commercial streets like Dong Khoi, Le Loi, Ly Tu Trong, Nguyen Trai, Le Van Sy, and Phan Xich Long are dotted with properties displaying “for rent” signs and contact details.

An examination of bustling commercial streets like Hai Ba Trung, Le Van Sy, and Phan Xich Long revealed several empty retail spaces. On average, approximately one out of every ten adjacent stores had a “for rent” sign.

A real estate agent managing a property near Tan Dinh Market, District 1, disclosed that a 500 square meter property is currently available for 200 million VND per month ($8,500), representing a 15% reduction from its original rate. Despite the lowered price and offering 20-30 days of free rent for refurbishments, the property has remained unoccupied since mid-2023 when the previous tenant, a cosmetics store, vacated the premise.

Another instance on Nguyen Thi Minh Khai Street, District 1, reflects a roadside property that has been vacant for over two years due to the deterrent effect of high rental prices on potential tenants.

Even premium properties on Hai Ba Trung Street, District 1, remain unoccupied because of their steep rental costs. One such property, vacant for more than a year, has been temporarily repurposed as a parking lot for nearby eateries.

Market research indicates that rental prices for street-front properties in District 1 vary from 50 million to 400 million VND per month, contingent on location and size. The average rental price in District 3 is around 192 million VND per month ($8,000), and in District 5, approximately 168 million VND per month ($6,600).

To attract tenants, some landlords are reducing rents by 10-15% and offering a month of free rent for renovations. Nevertheless, industry experts believe that these incentives may not be adequate to retain or draw in new lessees.