Hanoi retail space rentals down 30 percent due to COVID-19 hinh anh 1Landlords with properties on the streets of Hang Ngang, Hang Dao and Hang Gai have had to cut rents to attract tenants.— Photo dantri.com.vn

Hanoi (VNA) – While the COVID-19 epidemic has basically been controlled in Vietnam and business activities have resumed, the retail space market in Hanoi is gloomy with rentals down from 20-30 percent.

Poor business during the epidemic has forced many shop owners to close their business and seek to transfer or return their rented shops.

Pham Danh Tung, owner of a fashion shop in Hang Bai street in the downtown Hoan Kiem district, said a strong fall in customers and revenues, plus a high rent, has pushed him into the corner and he had to suspend business and return the shop to the landlord.

Meanwhile, Le Kim Dung, who has a shop for rent in Chua Boc street, said although she has reduced the asking price by 30 percent, no customer has come during the past month.

A survey by real estate firm CBRE showed 43 percent of retail tenants expected their revenue would decrease by 10-30 percent this year, and 27 percent hoped for support from landlords because their business operation was seriously affected by the COVID-19 epidemic.

Economic experts said the rising trend of online shopping is another reason making retail space less popular.  

Vo Thi Phuong Mai, head of CBRE’s Retail Services said the COVID-19 pandemic had negatively affected the traditional retail channel but at the same time created opportunities for more modern retail channels such as convenience stores and e-commerce. She expected that multi-channel retail will grow in the time ahead./.