40% of business premises in Korea Street are vacant

40% of business premises in Korea Street are vacant 2
40% of business premises in Korea Street are vacant 2

According to Savills Vietnam’s latest report, under the impact of the pandemic, the wave of land acquisition took place from the bustling and high-end neighborhoods in District 1 to the central edge areas such as District 7.

This is where many Koreans come to Vietnam to work and live, especially around Tan Phong ward, Phu My Hung.

A corner of Korean street in District 7, Ho Chi Minh City.

Ms. Tran Thi Thu Ha, in charge of Retail at Savills Vietnam, said that the average rental price of the Koreatown area is lower than the center.

In addition, the tendency of consumers to tighten spending has led to a serious decline in business of businesses in Korea City.

Similarly, in the townhouse rental segment in the central area, many food and fashion chains in prime locations are also facing declining business, forced to close or downsize.

Ms. Ha commented that reducing rent from landlords is one of the prerequisites to overcome current difficulties, not only for tenants in District 7, but for the entire market.

Landlords can choose to proactively reduce rents for tenants, find new customers to fill vacancies, or seek out a professional consulting unit for support and approach potential businesses or industries for cooperation.

As for tenants, choosing the right industry to invest in is also an important direction at this time.

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