Currently, the number of businesses that need to rent premises and already-built offices is on an upward trend. This is a positive sign of prosperity in trade and service business after slowdown triggered by COVID-19.

A section of downtown Le Duan Street. (Photo: https://tapchitaichinh.vn)

The owner of commercial premises with street-facing facades for lease in in the city centre have actively offered incentives to attract tenants. Most of the commercial stores have also reopened and the situation of stopping operation and the transfer of premises has decreased significantly as compared to the previous time.

Streets located in key tourist areas such as Pham Van Dong, Vo Nguyen Giap, Ho Nghinh, Bach Dang and An Thuong tourist quarter that were affected by COVID-19 outbreaks have led to low rents, but now the prices of  premises for rent along them is climbing up again.

Mr. Hoang Van Man, the owner of the premises for rent on Nguyen Van Thoai Street in My An Ward, Ngu Hanh Son District said that, in the past 2 years, his business premises were almost empty. However, since March of this year, many people have come here to mull over renting the site and now his family has rented out it for VND40 million/month.

Currently, the owners of many premises with on-street façades  have begun to promote advertisements on websites and social networks in a bid to look for tenants.

Through searching at websites specialising in rental real estate or fan pages for on premise renting on social networks, people can easily find hundreds of properties available for lease in Da Nang with various prices depending on the area and location.

According to recent surveys of many streets with bustling business activities, the rental price of premises currently fluctuates sharply from a few tens of millions of VND to more than a hundred million VND.

The rental charge per month of business premises with an area of 123m² (3 -storey property) on Le Duan Street is fixed at VND120 million, a 100m² site on Dong Da Street with VND80 million; a 198m² site on Vo Nguyen Giap Street with VND 35 million, an area of 50m or more on September 2 Street with a starting price of VND 14 million.

Ms. Nguyen Thi Hong Ngoc, a resident in Tam Thuan Ward, Thanh Khe District, specializing in brokerage for leasing business premises, said that since the beginning of 2022, many people have contacted her to ask for information on premises at many major streets for long term business.

Currently, the rental prices have started to increase again, but as compared to 2020 prices without the presence of COVID-19, it is still about 10-15% lower. However, landlords also have many mandatory conditions attached to tenants such as a contract term of 1-3 years and the price increasing each year by 2 - 3%.

As regard to the office segment for lease, Ms. Hoang Nguyet Minh, the Director of the commercial leasing department of Savills Viet Nam Co., Ltd., said that Da Nang has a rather limited demand for the office rental market, leading to a lack of confidence  in making investing decisions by investors.

Currently, with the Grade A office segment, the rent is still up to USD30 /m²/month, while Grade B has prices ranging from USD 18 - 20 /m²/month. Office rents in Da Nang need more time to recover as before the pandemic.

“It is expected that the new supply of the office market will focus on 2023 after a long period of projects being stopped due to the previous COVID- 19 upheavals. From now until the end of the year, already-built offices for rent will still be fully occupied. It is expected that office rents in the second half of this year will go up by more than 10% as compared to the beginning of the year," said Ms. Minh.

Reporting  by GIAO THUY - Translating by A.THU