Despite the high price, a street in Ho Chi Minh City remains unaffected by the returning premises trend, with customers still competing to rent.
After two weeks of advertising, a townhouse premises with a rental price of 47 million VND/m2 on Hoang Dieu 2 Street, Thu Duc district (old, now Thu Duc City, Ho Chi Minh City) has found a new owner. This is a street that records very few vacant premises, with bustling trading activities as Tet approaches.
Hoang Dieu 2 Street is an important route of Linh Trung Ward, Thu Duc City, Ho Chi Minh City. The road is 1.7km long, 4m wide, connecting from Le Van Chi to Kha Van Can. It is very difficult to find a vacant premises here amidst the recent whirlwind of returning premises in the Ho Chi Minh City market. Meanwhile, some nearby streets like Kha Van Can, Vo Van Ngan, Dang Van Bi have many vacant premises, hanging for rent signs for a long time.
This was originally the street with the strongest trend of increasing premises rental prices in Thu Duc City during the period 2017-2019. The increase was about 40-60% within 2 years. After Covid-19 - at the end of 2021, the rental price here continued to rise and only really stabilized from the end of 2022 until now. Recently, when Ho Chi Minh City faced a wave of returning premises across districts, this street was almost outside this trend. Renters find it difficult to find vacant premises at a soft price on Hoang Dieu 2 Street.
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The survey shows that premises with an area of 50 -60m2 here have a rental price ranging from 35-45 million VND/m2. This type of premises is almost very rare for tenants to return. If there is, only a short time, the broker has found new customers to rent. While large premises with a rental price from 80-150 million VND/month are returned but not long after, someone has rented.
According to the record, Hoang Dieu 2 Street mainly focuses on food and fashion stores. Some colleges and universities located on this street have stimulated the business demand for food and entertainment items.
Due to being close to colleges and universities, trading activities on Hoang Dieu 2 Street are also busier than other areas. Recently, when the premises of adjacent streets like Le Van Viet, Vo Van Ngan were returned quite a lot, Hoang Dieu 2 is a replacement when the rental price is still cheaper. That is the reason why this street quickly fills up rental places despite the difficult business context.
Some adjacent streets to Hoang Dieu 2 also have quite high premises prices, ranging from 40-200 million VND/month (depending on premises, location). According to brokers, in reality, the rental price of townhouse premises on Hoang Dieu 2 Street is quite high, only lower than the rental price of Vo Van Ngan and Le Van Viet streets. If compared with the streets of Thu Duc City, this place currently has a high premises rental price. This price has been pushed up over time due to the increasing demand for business premises here. “Recently, when the premises in the central area of Ho Chi Minh City such as District 1, District 3 were returned, a number of tenants have searched for large premises on Hoang Dieu 2 Street to rent in order to reduce premises costs. However, there are not many premises here for customers to choose”, a broker said.