Rentapartment Agency: Apartment rents plummeted amid epidemic season

Some landlords have reduced 30-50% of short-term rents for apartments for rent in Ho CHi Minh city

According to a survey on the influence of nCoV on the HCMC retail market by Rentapartment Agency Vietnam, the rental price of apartments and business premises in Saigon plummeted due to the sluggish wholesale situation.

For apartments that are being rented, some homeowners accept at least 1 month’s rent for monthly rent. Even, the landlord also reduced 30-50% of rent in the short term with the convenience store business, therefore, the price of real estate is also greatly reduced with buying property in Vietnam.

For apartments in the famous culinary neighborhoods like Vinhomes Central Park, Masteri Thao Dien (District 2), to attract tenants, landlords offer a 10-20% decrease in rent compared to the end of 2019. There are cases where the flexible landlord leases according to the desired area of ​​the customer, instead of forcing to rent the whole unit as before.

The Rentapartment Agency assessed the cause of a series of business premises in many culinary streets closed and returned houses because it was difficult to find tenants in the period of time when the epidemic was complicated, difficult wholesalers and sales declined. In addition, the term of a long lease can be up to 10 years in areas outside District 1 is also a factor that makes many customers wishing to rent a premises.

As of early March 2020, the impact of the disease has caused many restaurant business tenants to decide to stop business and pay ground when the contract expires. Meanwhile, some continue to maintain business to keep a good position or negotiate with landlords to reduce rents.

Some businesses that own commercial rental properties such as Vincom Retail and Hung Thinh have started to support partners with rental costs based on the extent of the affected or discounted rents of 20-40% depending on the case. variable of pandemic.

Mr. Peter Hoang, founder at Rentapartment Agency Ho Chi Minh City, said that due to the negative impact from the complicated movements of Covid-19 in the first months of 2020 and is expected to last in the next few months, modern retail projects There will be many considerations on the rent. The developers have taken action to support tenants in maintaining their business activities as well as ensuring the occupancy rate of the project.

He predicted that Covid-19 could accelerate the shift towards stronger online shopping than previously in the retail market. This movement will have a negative impact on the traditional stores in shopping centers as well as on street houses. Rental rates for business premises will continue to vary based on market conditions and disease developments. In this context, commercial developers and landlords will need to consider short-term support options for tenants.

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