Rents for commercial spaces in HCM City’s main streets have been decreasing in recent months due to lower demand, according to experts.

A house for lease in HCM City. — Photo nld.com.vn

Thin, a veteran housing broker in the city’s central area, said many landlords have recently sought his help to find tenants.

But it has become very difficult, and they have to wait unless they slash rental by 10-30 per cent, he said

Property owners on some major streets have in fact reduced rents by 10-20 per cent since the end of last year, including some who have not been able to find tenants for a long time.

Phan Cong Chanh, director of Phu Vinh Group, a real estate company, told Nguoi lao dong (Labourers) newpaper there have never been so many vacant properties as now.

For instance, on a short stretch on Tran Quang Khai Street in District 1 there are more than 20 premises available for lease, 20-30 per cent cheaper than before in some cases, he said.

Leasing has become difficult due to disadvantages in the market and the effect of the COVID-19 epidemic, he said.

Nguyen Hong Hai, chairman of Vina Office Company, said businesses that lease commercial space and offices have restructured themselves and cut prices to retain customers.

"In my opinion, eateries and fast moving consumer goods shops, if they do not cut losses now, will continue to incur them for at least four to six months before the market gets better.”

Small businesses in the food and beverage and fashion industries can only sustain losses for a maximum of six months, and so if they do not see bright prospects soon, should close down, he said.

Hoang, owner of a coffee shop on Nguyen Thi Minh Khai Street in District 3, said he opened just three months ago and now with the epidemic, he was worried about what was in store.

“If I make losses for six to eight months, I will definitely go bankrupt, so I am thinking of returning the premises to the landlord or releasing it."

Last month Hoang Lan of District 10 paid a deposit of VND15 million ($645.7) to rent a house for opening a coffee shop.

She planned to open this month, but found that amid the epidemic fears many coffee shops had little customers and so gave up the idea and agreed to forfeit the deposit.

According to real estate experts, the commercial property market may not recover until the third quarter of this year and so businesses and landlords need to lower rentals.

It is time for customers to look for new places in better locations and with more reasonable prices, they said.

Hai said many tenants are willing to lose their deposit or three months’ rent they paid in advance to find a better location.

Offices for lease also face the same situation, experts said.

They said many businesses are cutting costs and reducing personnel and so would move to smaller places.

They forecast that grade B and C offices of 30-50sq.m area and with rents below $20 per square metre would become popular soon.